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4871 Palm Coast Pkwy NW Suite 3
Palm Coast, FL

Phone: 386-246-3131
FAX: 386-246-3162

2020-logo-325-2.png

4871 Palm Coast Pkwy NW Suite 3 Palm Coast, FL

Phone: 386-246-3131
FAX: 386-246-3162

Independent Contractors

Most licensees work as an independent contractor under a broker.

Some work under an owner developer. In each, case we are running our own business and as such are subjected to the guidelines regarding independent contractors under the IRS. Independent contractors must work for multiple employers. We can’t, but we fall into an exception under the law. There are three things that we must do to qualify under the exception.

First, we must have a real estate license, second, our compensation must be based on production, and third, we must have an independent contractor agreement with our employing broker or owner. Oh, and by the way, the broker cannot pay for any of your expenses! Since this is our own business, here are some things that will help you. Think about incorporating yourself. In Florida, you must incorporate as your name in order for your broker to pay you. For instance, “John Doe, PA”. PA is an “S” corporation, but there are other forms that you may use. This will protect you from some liability and help a little on taxes. Next get a checking account and credit card under that name. Now, all your income and all your real estate expense go in and come out of this account. This will make your end of year accounting for taxes very easy! Speaking of taxes, don’t forget that you will have to pay your taxes quarterly as an independent contractor. Contact your attorney and tax person to help you set it up and all will run smoothly.

If you would like more information contact me. I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice. Make good choices. See you next time!

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Saturday, 04 December 2021

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24 May 2021
Ric's Blog
I just did some work on some rental properties and my home, and I hired a few contractors to do the work. I’ve experienced horrendous customer service. What do you consider good customer service? In our business customer service is what we have to se...
17 May 2021
Ric's Blog
Ok, stop me if you’ve heard this one... A day before closing, a man and a woman go into a bar to conduct a walk through. The man says to the women, “Where are the washer and the dryer?” The woman says “I don’t know, they must have gotten clean away!”...
11 May 2021
Ric's Blog
In my classes I teach that as soon as we get our license, we are operating as Sole Proprietors with our Independent Contractors contract under our Broker. Many have realized that this might not be the best entity to work under. Many sales associates ...
03 May 2021
Ric's Blog
How important is getting a listing at the right price, the right terms, and the right time for marketing? Well, it’s very important, in fact, it’s a critical mix necessary to have a listing sell. Do we want to get listings or do we want to get listin...
26 April 2021
Ric's Blog
Communication is a critical skill necessary for sales associates in order to succeed. We can’t listen to respond; we must listen to understand. The elements of a good communicator include, empathy, patience, flexibility, and reward. Empathy is unders...

Giumenta School of Real Estate

4871 Palm Coast Pkwy NW # 2

Palm Coast, FL 32137

 

Phone: 386-246-3131

FAX: 386-246-3162

Giumenta School of Real Estate

4871 Palm Coast Pkwy NW # 2

Palm Coast, FL 32137

 

Phone: 386-246-3131

FAX: 386-246-3162

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