David Saks: December 2011

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Paying Commissions to Your LLC Versus Paying Commissions to You - A Tough Question


A question was asked about whether or not, as a licensed REALTOR, you could incorporate yourself and have the company where you hold your license pay your corporation any commissions you earn.

Is there an issue with the company paying commission to your corporation versus paying commission directly to you?

The answer, as given by the Tennessee Association of Realtors Legal and Ethics attorneys, is that an agent can only be paid by their broker.

 

An individual licensee that has "incorporated" or "LLC'ed" himself CANNOT be paid a commission through the company.

The individual holds the license, not the company.

The only time that a company can hold a license is if it is a firm license.

A company cannot be issued an individual license.

Furthermore, pursuant to Tenn. Code Ann. 62-13-302(a):

"It is unlawful for any licensed broker to employ or compensate any person who is not a licensed broker or a licensed affiliate broker for any of the acts regulated by this chapter. A licensed nonresident broker may pay a commission to a licensed broker or another state if such nonresident broker does not conduct in this state any of the negotiations for which a commission is paid."

In addition, Tenn. Code Ann. 62-13-312(b)(11) states that an agent can be disciplined for "Accepting a commission or any valuable consideration by an affiliate broker for the performance of any acts specified in this chapter, from any person, except the licensed real estate broker with whom the licensee is affiliated".

An agent can only be paid in the name on their license - whether it is a firm license or their individual license.

How does it work in your state ?




David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 6 commentsDavid Saks • December 19 2011 07:19PM
Paying Commissions to Your LLC Versus Paying Commissions to You - A…
share
A question was asked about whether or not, as a licensed REALTOR, you could incorporate yourself and have the company where you hold your license pay your corporation any commissions you earn. Is there an… more
MORTGAGE BROKER CONVICTED BY JURY ON FEDERAL BANK FRAUD AND BRIBERY…
share
Former Destin Mortgage Broker Convicted by Jury on Federal Bank Fraud and Bribery Counts U. S. Attorney’s Office December 16, 2011 Northern District of Florida (850) 942-8430 &… more
Always Look On the Bright Side of Life
share
Happy Holidays-David- more
Real Estate Practice : Lesson 1450
share
#1450 A broker has the right to exercise the decision to control the number of hours an independent contractor would have to work in addition to the work schedule that the… more
Real Estate Practice : Lesson 1449
share
#1449 When a real estate salesperson is paid in a lump sum by the broker or their employer and that same licensee or salesperson is responsible for paying their own taxes, we refer to this… more
Real Estate Practice : Lesson 1448
share
#1448 A buyer became a client of a broker and decided that he wanted to purchase a house that the broker has listed with his company. It's not ok for the broker to show the buyer.. more
Real Estate Practice : Lesson 1447
share
#1447 When a real estate broker is hired by someone to sell their home the broker has an obligation to comply with the directions of any interested buyer. Is this true of false… more
Real Estate Practice : Lesson 1446
share
#1446 When we speak of confidentiality we consider it to be part of the fiduciary duty of care from the five common-law fiduciary duties of care, obedience, accounting, loyalty and… more
Real Estate Practice : Lesson 1445
share
#1445 The owner decides to abandon the property he has listed with a brokerage. This will terminate the relationship that the broker has with the owner. True or false… more
Real Estate Practice : Lesson 1444
share
#1444 When a real estate broker acts as the agent for the seller the broker has an obligation to disclose confidential information about the seller to the buyer if it helps the… more
Content © 2019 David Saks ((retired)). Design © 2019 ActiveRain, Inc. All rights reserved.
Logos and service marks owned by copyright holder.