Over the past few months several realtors have asked me: “Is it true that if I form a LLC (limited liability company) and run my real estate business through it I can pay less in taxes?” Before I answer that question I must clarify that I am NOT an accountant and this post should not be relied on as accounting advice. This post may, however, be used as “food for thought” and the basis for a discussion with your accountant. I know a number of accountants and they all have different approaches and opinions when it comes to various tax saving “strategies”. The structure below may not work for each realtor (based on your specific situation) and/or your accountant’s position on the issue.
How many times have you asked yourself, “Do I really need a will?” Or how many times have you said to yourself, “I know I need to get a will, but I’ll do it another time.” For most people, all they need are basic estate planning documents: A will, a financial power of attorney and an advanced directive for health care (more commonly known as a living will). And those basic estate planning documents should not be expensive.