Self-employed real estate brokers and other self-employed real estate professionals must choose how to legally organize their business. The cheapest and easiest option is to be a sole proprietor. However, another option is to form a subchapter "S corporation" and work as its employee. This is more expensive and complicated than being a sole proprietor, but does have one big advantage: It can save you on Social Security and Medicare taxes. S corporations can serve as a Social Security and Medicare tax-saving device because employee salary is subject to such taxes, but S corporation distributions to shareholders are not. Thus, to the extent they pay themselves shareholder distributions instead of employee salary, S corporation shareholder-employees can save big money on these taxes....
Aug 30, 2013 by Stephen Fishman
Real Estate & Personal Finance
Aug 20, 2013 by Stephen Fishman