Many of our agents would like to receive the commission payable to their Corporation or Limited Liability Company. We have received an explanation from the DRE and IRS regarding the correct legal method of doing this.
Ashby & Graff may pay commissions to our agent’s Corporation or Limited Liability Company when all the requirements below are met:
1) The agent’s Corporation or Limited Liability Company must be owned solely by our agent.
2) An agent must present the following to the broker:
a) Corporation or Limited Liability Company W-9 form.
b) Notarized letter (sample below) stating that the Corporation or Limited Liability Company is owned solely by him/her and that he/she is requesting the commission be paid to his/her Corporation or Limited Liability Company.
Please note that the agent’s Corporation or Limited Liability Company can’t be involved in a real estate transaction. In a real estate transaction, the agent may act only as an individual person. This is because only he/she has a DRE license, is affiliated with Ashby & Graff and is permitted to represent a buyer or seller in a real estate transaction
Sample Letter
To: Ashby & Graff Real Estate
John Smith, being duly sworn, deposes and says:
1. I am a duly licensed salesperson affiliated with Ashby & Graff Real Estate.
2. I have formed a legal entity under the name of (John Smith, Inc)
3. John Smith, Inc. is not licensed as a real estate brokerage.
4. I am an owner of John Smith Inc.
5. I request that all future commissions payable to me, earned in my capacity as a salesperson with Ashby & Graff be paid to John Smith, Inc.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
John Smith ____________________
Date__________________________
CalBRE#_______________________
- Admin on August 15, 2018 @ 04:23:05
This post was created by Admin on August 15, 2018.
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