ATTN: Anyone that owns an LLC or is a CPA

Question for those who are smarter than me.

I am getting ready to open an LLC. I am going into residential real estate as an agent, not a broker (yet). From the people I have talked to they all said that I should open an LLC for various reasons, mostly tax leverage. My question is this, in the form of a hypothetical.

I recieve a commission for a sale. I deposit the check/funds into my business bank account. From what I understand, any time a broker gives you commission payment, it is done on a 1099 Tax form. So, I deposit the funds into my account. Here is the question. How do I actually pay myself? Do I just cut myself a check from the company? Or do I use the LLC as my personal piggy bank?

This is the part that confuses me.

 

 

If I understand what your asking, if your the owner of the LLC, you don't "pay yourself". You take a draw against your quarterly(expected in your case). In other words, you just write a check from company to yourself.

Do not use the LLC account for ANYTHING other than your business stuff. That is unless you like to be audited. It is not a personal piggy bank.

I used to just transfer funds but I was told even that can raise hairs. So I literally cut myself a check from my company to myself.

 

 

This should help

 

http://www.sba.gov/community/blogs/community-blogs/small-business-matters/llcs-explained-101-small-business-owners-0

Just cut yourself a check when you need it. Like someone else said, it's called a member's draw. Phone Post 3.0

Thanks a lot fellas.

Enderin, I'm going to shoot you a PM later on.

Ttt Phone Post 3.0

South Florida. Connections with wealthy russians who will be coming here to purchase homes for cash for visa and investment reasons. Phone Post 3.0

The benefit of forming an LLC as an agent would be to pay yourself a salary throughout the year so you are not taxed as an independent contractor for all of your commission money . I personally do it through a payroll company, but I believe you can use quickbooks or something like that to do it yourself but I am not spending the time to figure it out myself Phone Post 3.0

Oops looks like it was already answered Phone Post 3.0

David@accu - 

 

 

If I understand what your asking, if your the owner of the LLC, you don't "pay yourself". You take a draw against your quarterly(expected in your case). In other words, you just write a check from company to yourself.

Do not use the LLC account for ANYTHING other than your business stuff. That is unless you like to be audited. It is not a personal piggy bank.

I used to just transfer funds but I was told even that can raise hairs. So I literally cut myself a check from my company to myself.

 


David pretty much answered it.

 

Get yourself a good CPA and you will not have to worry as much. I have two LLCs and I visit my CPA quarterly for about half an hour just to make sure my shit looks straight. It helps keep my books on the up and up.

EnderinAK - Pay yourself a salary that you can afford to. You will pay social security and Medicaid on it. Whatever you get above that will be profit and you will only have to pay federal taxes on. You won't get 1099 if you give them a w-9 with your corporate info. If you make 100k and only take 50k in salary you will save thousands in social security tax right there. Do regular payrolls. Take extra when it is available and it will just be profit. If you want some other tips send me a pm. You should be doing everything you can to pay as little in taxes as legal. Phone Post 3.0
Damn vote up ! I need to make some changes Phone Post 3.0

EnderinAK -
TheSergeK - South Florida. Connections with wealthy russians who will be coming here to purchase homes for cash for visa and investment reasons. Phone Post 3.0
Udachee tebye Phone Post 3.0
Spacebo Phone Post 3.0

Death and Taxes - 
EnderinAK - Pay yourself a salary that you can afford to. You will pay social security and Medicaid on it. Whatever you get above that will be profit and you will only have to pay federal taxes on. You won't get 1099 if you give them a w-9 with your corporate info. If you make 100k and only take 50k in salary you will save thousands in social security tax right there. Do regular payrolls. Take extra when it is available and it will just be profit. If you want some other tips send me a pm. You should be doing everything you can to pay as little in taxes as legal. Phone Post 3.0
This will work with an entity taxed as an S-Corp, not a single-member LLC or LLC taxed as a partnership. Phone Post 3.0

This

And hire D&T

D&T make sure to get a retainer!

Death and Taxes - Are you the sole member of the LLC? Phone Post 3.0
For now yes. In the future I plan on expanding. Phone Post 3.0

TheSergeK - South Florida. Connections with wealthy russians who will be coming here to purchase homes for cash for visa and investment reasons. Phone Post 3.0

This is a front for money laundering am I right?

Waits for following threads:

"TME on opening offshore bank accts? "
"Which countries don't have extradition treaties with the U.S.?"

I am CPA in private practice...

There is no tax advantage to being an LLC, a single member LLC is a disregarded entity for tax purposes, which means it is just a blank shell.

When you have no partner you file a extra form with your tax return called a schedule C, so there is no difference from being a sole proprietor.

When the company pays you just deposit into your business account and take the cash that's it. The company that pays you will send you or your LLC a 1099 misc at the end of the ear.

Also, do not elect S Corp treatment unless you make over 100k profit a year, you will get yourself in way over your head.

Just take a draw (a check out of your bank account)for now once you are making good money then start thinking about S Corp election.

For a person just starting out a LLC is the best because it is a blank shell, you can elect other tax beneficial treatments when you are ready.

Thanks Deedz, that makes more sense.

Question along the same lines. My buddy and I are starting a business and I was told to create a C Corp but after reading about C vs S and LLC I am way over my head. Opinions?

deedzBJJ - Also, do not elect S Corp treatment unless you make over 100k profit a year, you will get yourself in way over your head.

Just take a draw (a check out of your bank account)for now once you are making good money then start thinking about S Corp election.

For a person just starting out a LLC is the best because it is a blank shell, you can elect other tax beneficial treatments when you are ready.

And you've just taken away from Serge the primary benefit of having an LLC:

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