I have an S corp question. I have an accountant.
Scenario-- I own a real estate brokerage with 8 agents and I also still personally do residential sales. My agents are 1099'd as they are independent contractors. The brokerage makes money from brokering the agents and the brokerage makes a profit from the agents for these brokerage services.
Since I'm still a selling agent and those commissions aren't part of the income of the brokerage except for the portion of the commission that is owed to the brokerage (just like other agents in the company).
- How should the commissions on personal sales to myself be reported? 1099(like other agents in the office) or salary?
- Since agents aren't W-2'd and are 1099'd for their commission less what is paid to the brokerage--what would be considered the correct "salary" for the broker/owner on their own production?
Followup--should two different entities by formed...ie two corporations or a separate LLC or sole proprietor for the personal sales?
BTW--I've had different CPA's give differing viewpoints.