NJ Agent LLC’s

For years, New Jersey agents have watched colleagues in other states collect their commissions through their own business entities while NJ licensees had to take every check in their personal name. That finally changed this year. The New Jersey Real Estate Commission now allows licensed salespersons and broker-salespersons to form a single-member LLC to receive their commissions directly from their broker.

So what does this mean in practice? Instead of every closing check being made out to you personally, your broker can now pay your LLC. For example, “Jane Doe Realty LLC.” The LLC must be properly formed and registered with the state, and you will need to provide your broker with the correct documentation. It is still your income, but this new rule lets you treat your real estate career as a true business. It can simplify recordkeeping, help you organize your finances, and offer some potential advantages when tax season comes around.

If you have ever wanted to operate more like a business owner, this is the perfect time to do it. Reach out to our office to talk about setting up your LLC the right way and making sure it complies with the NJREC requirements. The change is a major step forward for agents in New Jersey, and it finally puts you on equal footing with professionals in many other states.