The New Jersey Senate has passed a bipartisan bill sponsored by Senator Joe Pennacchio (R-26) aimed at supporting real estate professionals in the state. The legislation, known as S-4889, amends current law to allow realtors to maintain their independent contractor status while receiving commission income through a limited liability company (LLC).
Senator Pennacchio explained the purpose of the bill: “This bill ensures that New Jersey real estate professionals can keep their independence while taking full advantage of federal tax benefits. It’s a simple, common-sense fix that will protect realtors’ hard-earned money while making New Jersey a more business friendly state.”
Recent changes in registration requirements had raised concerns among real estate professionals about potentially losing their independent contractor status, which could result in the loss of certain federal tax deductions. The new legislation clarifies that accepting commissions via an LLC does not jeopardize this status.
The full text of the legislation is available online.
