As some of you may know or remember I decided to go into real estate as an agent representing buyers, sellers, and renters. I've been working to make the transition from my full time career to this new path. I'm not in a situation to just quit my current job, but luckily my schedule affords me the proper time to be accessible to my real estate client's needs. Well, I got involved in another venture with a fellow realtor who specializes in estate sales, auctions, and some other real estate market deals.

Typically, I wouldn't think of forming a company just for being a Realtor. Besides having separate checking accounts, my name and address are on personal and professional checks, checking accounts, phones, and everything else.

Here's my question:
Considering I'm venturing out to doing more than just being a Realtor would it be worth it/smart to start an LLC or some type of company? That way all income, phones, vehicles, and everything business related is under "a business name"? Considering it/I am into more than just being a Realtor I considered making the business "a group" like (The donnieR32 Group...no not that, but something to that nature) so that down the line it would be easy to see the different facets (real estate, loans, property management) and not pigeon hole myself based on my company name.

Is this something to even worry about this early? Real estate is starting, but I'm no Trump. The other facets are slowly coming together and before December I'd say a steady flow of income will be rolling.

Last one; if at my small of a level if you used something like Legal Zoom could you later "upgrade" with a proper lawyer or would you run into issues like having to rename the company because you already established said company under a different legal "program"

I think that's it, I appreciate any and all feedback. I'm walking away from a "solid" career for a chance at being my own boss, in charge of my own destiny, and of course a more fulfilling and rewarding life. I take every opportunity to learn and am all ears.

Go see an accountant and a lawyer.

That's in the works. Never hurt to make a thread and potentially educate myself prior to a meeting with a lawyer.

Make sure to stop by your local SBA.

Will do.

Accountant is a must.

I set up my LLC online 7 years ago and we are now a fairly sizable company. Not big by any means but 10 employees, decent revenues, etc. I see no problems doing the LLC online but consult with your accountant before doing so. If you make the S corp election which in a lot of cases makes sense to do, you have a limited time period after the company formation to do it.

In my 7 years of business I think I have spent two hours on lawyers. I spend a lot of time with my accountant.

Great, thank you for the information. I really appreciate it.

Hi, I hope your doing well. I'd suggest finding some reading on your current pursuits. I'm under the impression, at least in my area of the nation, that a R.E. "Agent" must be operating under a Broker's authority. Maybe theres different R.E. guidelines and terminology in different states.  Overlooking that terminology, I'm also under the impression that with new and ever changing tax laws and there direction the more individual tax entities a central establisher can establish, the better the tax treatment. Additionally there are many tangents, like .gov must doos if you have xxx, or yyy. Taxes, become a major consideration many overlook starting out, perhaps you might explore this consideration. Best wishes.

Yes, I'm a realtor associated with Coldwell. That is my broker, but we operate independently.

Great! Perhaps reading : Prosperity in the age of Decline, by Beaulieu. I'm not sure about the future, what does your crystal ball say, "try again later"? But you see my current bias no doubt, I do think R.E will do well, iirc, last I looked most REITS sector funds averages had done well from the R.E. crash in 09, not that that has anything to do w/actually selling R.E., please research this on you own. Best wishes.

I have an LLC, with several different kinds of businesses going. Some in, and some out of the LLC. in all honesty, it would have been better to have just made them sole proprietorships i think. If you are operating in an LLC as just one person or as a family  you have to be constantly cautious how you sign things because if you operate it like a sole proprietorship, a good lawyer can break through the corporate veil and still sue you individually.

Good to know. Thank you very much. As for now, I'd only have 2.

1. Realtor

2. Something else related to real estate, but not the same as being a realtor.

LLCs are cheap and easy, I'd keep the businesses separate for a variety of reasons.  You'll want to be able to track how each is performing independently when making decisions about where to put your time/money, you won't (necessarily) lose both if one is legally liable for something, easier to sell one later if you decide to go that route.

That's a good angle I hadn't thought of.

tracking the business's is relatively easy with or without the LLC. Just use different books and bank accounts.