Is Single member LLC the best solution for part-time Real Estate Brokerage.

Is Single member LLC the best solution for part-time Real Estate Brokerage. I got a full time job, but would like to do some RE on side. I pass the broker test and I am ready to applay for broker licence. Tell me which way is best to do it.

Dan

Answer

Are you going to be opening up your own real estate brokerage firm on the side, or acting as a real estate sales representative under someone else's license?

If you are going to be a sales representative, then you can probably do fine as a sole proprietor/independent contractor. Just be sure to have professional liability insurance (or that you are covered under your broker's), as I am seeing more lawsuits where buyers are trying to back out of deals, and the real estate agent gets dragged in by one or both of the parties.

If you are opening your own brokerage, and will have agents working for you, you should consider forming an entity like a SMLLC (single member LLC).