Question:  I am a licensed real estate agent and want to set up a corporation to receive my commissions.  Is this legal?  If so, what type of corporation do I set up?  May I set up a limited liability company?

Answer:  According to the California Department of Real Estate, it is legal for a real estate licensee to set up a corporation to receive commissions.  However, a limited liability company cannot be used for this purpose.  Professional service companies, such as corporations for real estate services must be an S or C corp.  It is recommended that you consult with your accountant before choosing whether to make a sub-S or C election.