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Wednesday, 23 October 2019
Agent Resource Center
Agent Resource Center

Should a Real Estate Professional Incorporate?

Written by Posted On Wednesday, 26 June 2019 05:00

1. Incorporation can offer tax benefits.

2. Incorporation has an initial and annual maintenance expense.
3. Corporations are separate entities and as such require a degree of "corporate housekeeping," of which failure to maintain may result in the loss of any liability protection which may be afforded by the corporation.
4. While many who incorporate use the benefits afforded them by incorporation, many do not use them which makes the incorporation a waste of money. I have seen this repeatedly in my tax practice over the years. Most of my tax clients were REALTORS.
5. Some states may have restrictions on payment of commissions, allowing commissions to be paid to only brokers or sales licensees, and typically, corporations may hold a broker but not a sales license.
6. Consult your tax professional and make careful consideration before taking on the responsibilities and benefits of incorporating.

One must be willing and able (financially) to implement the benefits allowed by incorporating, otherwise it is a waste of time, effort and money to incorporate. Video is old but relevant.

Read 2476 times Last modified on Thursday, 20 June 2019 11:22
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Saul Klein

In 1948, doctors told my father that his life aboard submarines on war patrol in the South Pacific and the depth charging he experienced had rendered him sterile. Although controversial and not widely applied, he was treated with an Ayurvedic therapy called “shivambu.” If you are unfamiliar with this term, I recommend you Google it because against all odds, I came to exist.

That was a loony segue into my life but is a fitting precursor to a career that would be just as incredible.

Like my father, I joined the Navy. However, due to a medical inconvenience, I was honorably discharged after 6 years of commissioned service, all on Sea Duty. This was an opportune misfortune that led me down the path to a successful career in real estate. Both my father and grandfather flirted in real estate brokering and flipping part-time, and I followed suit but making a lifelong career out of it.

With over 40 years in real estate, it is impossible to talk about my experiences in this small window. But I can proudly say that I am well-recognized as an industry pioneer, especially in real estate syndication and education, and one of the few luminaries that paved the way for real estate’s transition to the online world.

Some highlights of my life’s work:
● Co-created ePRO, technology certification course that certified 70,000 students
● Created the first online communities for real estate professionals to network, learn, and sell
● Created "Opt Out" Listing Syndication, aggregating over 1.4 Million Listings in 18 months
● Built the #2 National Listing Syndication Service, Point2 Technologies, sold to Yardi in 2010
● Founder of the California Association of Buyer’s Agents
● Member of the first REALTOR.com Team, pre-IPO, responsible for obtaining first 500,000 listings
● Helped Zillow and Trulia build up their MLS data inventory

Today I continue to lead efforts that bring new technologies to the real estate industry. Feel free to reach out and learn more.

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