Hello, I hope I'm in the right sub.
My wife is a full time real estate agent. This year was her best for business by far. Normally she nets 35k to 55k, but this year we are expecting 75k so far, and she still has several active clients and four months to go.
Anyway, several other agents have told her emphatically that she needs to set herself up as an LLC, without going into detail why (just that it's the "thing" to do once you start to get successful). My dad is actually a CPA and does our taxes, so I asked him of course. Now my dad is old school in that I don't know what the hell he says half the time. I did get from him that an LLC might be beneficial, but that there are other considerations. Something about my wife paying herself a salary, and potential illegality and unethical practice of giving herself bonuses to avoid some tax?? (I didn't follow).
I do pretty good with a steady job reliably making around 95k. I think we file married/joint. I really don't understand much, I usually hand all our stuff to my dad and say thank you.
So what's with the LLC? What are our considerations here? Please ELI5, or at least ELI35 but haven't been very responsible keeping up with money stuff.
I thought it better to try asking in a sub like this instead of a real estate sub.
Submitted August 27, 2017 at 02:21PM by TheTomatoThief http://ift.tt/2w95nnM
