You might think an LLC is just for tax and legal benefits, but there are also crucial business reasons real estate agents should work through an LLC.

Separation is crucial

The need for separation between your personal and business finances is absolutely crucial. Paying your bills from your business account rather than your personal account feels completely different, and it allows you to actually invest in your own company, rather than deterring it.

What gets measured gets managed

When you’re working through an LLC, you’ll be keeping a QuickBooks file. This may sound like a daunting task, but you can get bookkeeping done cheap and easy; and the kind of accounting you’ll be doing as an agent is very simple.

Plus once you can see your numbers on a proper profit-and-loss statement, you’ll be more equipped to effectively manage your business.

Mindset is everything

You will be going from having a sales job to running a company. The fundamental part of what you’re doing as an agent will not change, but how you approach it could.

You will have the tendency to do more “company owner” tasks such as marketing, operations and finance rather than just getting bogged down with transactional work.

Are you ready to take the next step with your business? Form an LLC, and start reaping the rewards.

Chris Haddon is an entrepreneur based in Washington, D.C., a partner at Hard Money Bankers and a co-founder of

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