I'm doing some research and have found that a Calif Mortgage Broker cannot file as an 'LLC'. Why is that? And is S-Corp the most logical/advantageous. Planning to operate as family style....not big corporate. Any help greatly appreciated!
2007-02-27 15:54:47 · 2 answers · asked by Jo 1 in Business & Finance ➔ Corporations
If you mean that you're a licensed mortgage broker that was operating under your own name last year, you're right, this year you can't file as an LLC, because you weren't organized that way when you conducted the business (you would be a sole-proprietor, and subject to self employment taxes).
But going forward you sure can. You need to form an LLC with the Secretary Of State (www.ss.ca.gov), and then get a Broker's license for your LLC (www.dre.ca.gov). Get an EIN (employer identification number) from the IRS, and register with the California Franchise Tax Board. Similar steps for forming an S-corp, with the addition of filing an S-corporation election with the IRS (form 2553).
2007-02-27 19:20:30 · answer #1 · answered by SndChaser 5 · 0⤊ 0⤋
One reason is because a broker is an licensed individual and the entities your talking about are companies with a board of directors. If your trying to insulate your family from any legal or financial ramifications of operating a company, maybe you should talk to an attorney about simply incorporating and then you and your family members could be employess of the "inc."
2007-02-28 00:32:35 · answer #2 · answered by annazzz1966 6 · 0⤊ 0⤋