QUESTION
Can a broker pay an agents commission to their corporation?
Asked on Dec 23rd, 2015 on Real Estate - California
More details to this question:
I have a broker associate that works for my brokerage. She would like to have her commissions paid to her corporation instead of in her name. Is that legal? Would I then just 1099 her corporation instead of her at the end of the year?
1 ANSWER
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Commissions must be paid to the name that is licensed. If your broker associate is the broker of record for the corporation and your agency agreement with the broker associate lists the corporation, then yes, you can pay the commission to the licensed corporation. Generally, you do not have to report income paid to a corporation on Form 1099.
Answered on Dec 23rd, 2015 at 7:54 PM