Are you a Individual Broker or Trade Name broker or LLC and why?

I want to be a one person home based business

I am an individual Broker (one person, home based business).

The reasons are many: 1)I prefer to have the flexibility to change my business model as conditions change without having to deal with a sponsoring broker or larger company policies. 2) I do not sponsor other agents as I operate conservatively and do not want the risk of how someone else is doing business. 3) I live in an area of overlapping MLS coverage and participate in both without the baggage of all the agents of an office having to also belong to both even if they would prefer only one MLS. 4) Not having to split commission with a sponsoring broker I can generate the same amount of income from fewer transactions. 5) being home based a portion of my expenses that would be incurred anyway are also tax deductable as business expense. 6) I set the priorities of expenditure for business expense unilaterally with no debate from anyone else. Need I go on?

I just received my broker's license several weeks ago. I too, intend to be my own company - the only agent. I have been seeking advice from brokers I know. I agree with Mr. Foreclosure.

Here's what one of the broker ask me that I really dont have an answer for:

If I was a company of 1, I am the business. There is no asset value should I retire because I am the business. Hence, I cannot sell the business.

While I like being by myself, what happens when I go on vacation, etc.? Who and how could be there to support my business when I am off?

These are the 2 questions, and I hope someone can help answer.

Broker, S Corp, I am the sole officer/director right now. I don't think an agent can be an officer, I think only another broker can be but I'm not sure.


CA doesn't allow RE brokerages to form an LLC so I did the S Corp for tax & liability reasons.

With regard to the issues raised by fatmaxxv I would like to put a different spin on the concerns.

Regarding not having any asset value to sell at retirement I will disagree with the broker that raised that concern with him. 1) You will have a certain amount of physical property that is unique to the business; it may not be much considering depreciated value having used it already but still of interest to someone starting that may not have the resources to invest new in everything all at once (fortunately most of my items I had already accumulated while sponsored by another broker). 2) Depending on how you set yourself up there may be the the name and good will of the company. For example "XYZ Realty, Your Home Town Broker for over 25 years" will have a greater market value to convey to a new owner than "John B. Smith, Realtor". A contract with whoever might buy your business for you not to return to the business for "X" years or within "Y" miles of the office also has marketable value. 3) Whatever your listing inventory is at the time of the retirement sale can be conveyed to another broker on mutually acceptable terms (often similar to a referral fee).

With regard to vacation I have found that I don't always have to work from my office. When I am away I set the outgoing message on my 'phone recorder to instruct people to contact me by e-mail and that if they leave a voice mail it will not be responded to until the date I plan to return. I check the e-mail regularly while away and respond as necassary. I also take with me the folders for my active listings in the event someone needs a contract addendum (most of my listings are REO with client specific addenda) faxed to them, which I can do from a Kinkos or equivalent.

thanks for the advice

Thanks, Mr. Foreclosure... I too like YBE want to start my own - and as of right now, have no interests in recruiting. Just being on my own.