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LLC vs. S-Corp for Realtors: Pay Yourself the Smart Way

  • Writer: Neerja Kwatra
    Neerja Kwatra
  • Dec 31, 2025
  • 1 min read

Many agents operate as sole proprietors, but forming an LLC or electing S-Corp status can improve both liability protection and tax efficiency.

LLC Advantages:

  • Limited liability and professional legitimacy.

  • Simpler setup and flexible ownership.

S-Corp Advantages:

  • Ability to pay yourself a reasonable salary while taking the rest as distributions.

  • Reduces self-employment tax on a portion of income.

When to Consider:

  • Consistent annual net income above $75,000.

  • Desire to separate business and personal finances.

💡 Key Takeaway: The right structure can save thousands annually while protecting your personal assets.

⚠️ This blog is for informational purposes only and does not constitute tax, legal, or accounting advice. Please consult your CPA for guidance specific to your situation.

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