Can A Real Estate Agent's LLC Sign An Independent Contractor Agreement With A Broker?
You may not know, but in Arizona, professional limited liability companies (LLC) or corporations (PC) are permitted to hold real estate licenses with the Arizona Department of Real Estate (ADRE). Therefore, a real estate agent can form a professional limited liability company or corporation and obtain a real estate license for it with the ADRE.
Thereafter, the real estate agent can cancel his/her independent contractor agreement with the broker and execute a new idependent contractor agreement between the broker and his/her limited liability company or corporation. The new entitity does not shield necessarily the real estate agent from liability for any wrongful actions as a licensee. However, the entity can provide the real estate agent with significant tax benefits. To understand the specifics of those benefits, an agent should consult with his/her tax professional.
At Schern Richardson Finter Decker , we are happy to answer any questions you may have pertaining to the formation of a real estate professional limited liability company or corporation.
Schern Richardson Finter Decker
www.realestatelawfirmphoenix.com