Prepared for W-2 Brokers at JLL

You're still on W-2. JLL will pay your S Corporation instead.

Converting to QREA/IC status changes how you're paid, how you're taxed, how you're insured, and how you save for retirement — all on the same day. Handled deliberately, it's worth real money every year you keep producing. Handled casually, it's cleanup at filing time.

Start with what actually changes when you convert ↓

Prefer the numbers first? Read the full tax strategy.

The Vocabulary

What QREA and QREA/IC actually mean

JLL's conversion materials move between these terms quickly. They are not the same thing, and the gap between them is where the money is.

Term 01

Qualified Real Estate Agent (QREA)

A federal tax status defined in Internal Revenue Code Section 3508 — not something JLL invented. It applies when you hold a real estate license, substantially all of your pay is tied to sales rather than hours worked, and you have a written contract stating you won't be treated as an employee.

Meet those tests and you're an independent contractor for tax purposes, without the twenty-factor common-law analysis every other contractor has to survive.

Term 02

QREA/IC at JLL

JLL's internal label for a broker who has converted. Your external title doesn't change — Senior Director stays Senior Director. Inside JLL's systems your employee type changes, your commissions move from payroll to Accounts Payable, and nothing is withheld.

The platform, tools, and support stay the same. What changes is the tax treatment.

Term 03

The part JLL leaves to you

Converting makes you an independent contractor. It does not decide who gets paid. JLL can pay you personally, or it can pay a company you own.

That second decision is the one that moves your tax bill, and JLL doesn't make it for you.

Why JLL Brokers Convert

You already carry the risk. W-2 status taxes you as though you don't.

If your income is commission and your production is yours, you are already running a business. Converting lines the tax treatment up with the reality, and three things open up:

Deductions you've been absorbing

As an employee, unreimbursed business costs give you nothing on your return. As a contractor they come off the top — every year, for as long as you produce.

A much higher retirement ceiling

The JLL 401(k) closes to you at conversion. What replaces it, built correctly, holds several times what you could put away as an employee.

Control of the structure

How your income is paid, when tax is remitted, what entity receives it, what plan you run — those become your decisions instead of defaults inside someone else's system.

Leaving W-2 Status at JLL

Five things change the day you convert.

  • Nothing is withheld any more. Your bi-weekly commissions come through Accounts Payable rather than payroll, and there are no paystubs. Paying the IRS on schedule becomes your job — quarterly, in the right amounts, or the underpayment interest and penalties start.
  • You pick up both halves of the payroll tax. Social Security and Medicare, employer share and employee share. This is the number everyone fixates on, and it is the one an S Corporation manages most efficiently.
  • The JLL 401(k) closes to you. Conversion is treated as a distributable event. The balance you built as an employee can stay where it is or roll into another qualified plan, but you can't contribute to it again, and the 401(k) match is gone. You replace it with a plan of your own — and the ceiling goes up, not down.
  • Benefits stay available, at a very different price. Medical, dental, and vision continue through JLL, but you carry a much larger share of the premium, you're billed monthly by direct debit instead of payroll deduction, and the portion JLL pays becomes taxable income to you. JLL-paid basic life and long-term disability end. Short-term disability ends outright.
  • Your expenses finally count. Association dues, license fees, and mobile device purchases stop being reimbursed at conversion, so they become your cost — and your deduction. So does everything else you end up carrying yourself: travel outside the covered categories, spending where chasing the approval isn't worth the reimbursement, your own marketing, technology, home office, and administrative support. As an employee, none of it did anything for your return. As a contractor, it comes off the top.
Four of those five get better with the right structure behind them. The fifth — benefits — gets planned for, not fixed. We'll tell you which is which before you commit to anything.
Why Structure Matters

Two ways to be a QREA/IC. They are not equal.

Option 01

JLL pays you personally

The default, and the simplest to start. Also the most expensive to keep: every dollar of net commission income runs through self-employment tax, and your planning options stay thin.

Option 02

JLL pays a company you own

An LLC taxed as an S Corporation. Your income splits between wages and distributions, which typically lowers payroll tax, and the entity gives your retirement plan, your books, and your cash flow an actual framework to sit in.

JLL's own conversion paperwork assumes this is on the table. Corporate Accounts Payable asks for an updated W-9, a vendor form, and state confirmation that the entity has been set up and approved. Which means the entity has to exist, and be approved, before that step — not after it.
Whether the S Corp pays off for you is a number, not a rule of thumb. The S Corp Feasibility Analysis models it on your actual commissions — savings, running cost, and timing against JLL's monthly cutoff — and ends in a written recommendation either way. $999, or $1,499 if you're still on W-2. Every dollar credits back when you enroll in S Corp Management. The S Corp is also just the first of six levers; the full stack is on the tax strategy page.
The Retirement Question

The 401(k) you lose can be replaced by one that holds far more.

Losing the JLL plan and the match sounds like a step backward. It usually isn't. A 401(k) inside your own S Corporation has a ceiling several times higher than what you could put away as an employee — but only if the entity and the wages are set up to support it. The common default for a new contractor is a SEP IRA: easy to open, funded entirely from the employer side with no employee deferral, and it takes a great deal of income to reach a meaningful contribution.

Option 01

SEP IRA as a sole proprietor

Capped at roughly 20% of net earnings after half of self-employment tax. No deferral. Reaching the 2026 maximum of $72,000 takes something on the order of $376,000 of net profit.

Option 02

401(k) inside your S Corporation

You defer up to $24,500 of your wages first, then the company adds up to 25% of those wages on top. The same $72,000 total is reachable at roughly $190,000 of wages — about half the income.

2026 limits, assuming no other plan participation. The right answer depends on your production, your age, and whether you have employees. The point is that the easiest plan to open is rarely the one that gets the most money in. See the full comparison, including defined benefit plans →
Timing

Conversions run monthly. Every month you wait is income you can't go back for.

JLL runs these on a monthly cycle: everything submitted by the 15th, conversion effective the first of the following month. So you're never more than a few weeks from a start date — and there's no reason to drift, because the tax treatment applies to what you earn after the conversion is live. It does nothing for commissions already booked.

  • The 15th is the real deadline. Paperwork submitted by the 15th, conversion effective the 1st of the next month. Miss it and your start date moves out a full month — along with everything you would have earned under it.
  • The entity has to come first. Form it and get it approved. State processing times vary widely, and that approval is exactly what JLL's vendor setup asks you to produce.
  • Then the EIN and the S Corporation election. The election has its own deadline rules, separate from JLL's calendar.
  • Then vendor setup. Updated W-9, vendor form, and state confirmation to Corporate Accounts Payable. Your address and banking details don't carry over from Workday.
  • Payroll and a retirement plan need to be running. Both have to exist before the first dollar you want them to shelter arrives.
  • Benefits move on a different clock. Medical, dental, and vision follow JLL's own enrollment calendar, and premiums switch to monthly direct debit when you convert. Worth pricing before that happens, not after.
None of these takes long on its own. Together they take longer than a month. Which makes the practical question not whether to convert, but which 15th you're aiming at.
The Setup Package

One package. Properly structured from day one.

Everything a converting JLL broker needs to get the entity built correctly, in one flat fee.

$2,000
One-Time · Tax-Deductible
  • LLC formation and S Corporation election
  • Payroll setup and compensation design
  • Banking, cash flow, and estimated tax framework
  • Vendor-setup documents JLL will ask you for
  • Deduction identification for real estate professionals
  • Retirement and benefit plan options
  • Structured onboarding session — you'll understand your responsibilities
Half of it comes back to you. Continue into S Corp Management and we credit $100/month off your fee for 10 months — $1,000, half the package. The other half covers the hard costs of building your S Corp.
After Setup

Forming it takes a week. Running it takes every year after.

An S Corporation is an ongoing responsibility — payroll, books, planning, and a return, every year. Our S Corp Management service runs all four as one system: a tax and cash flow plan updated five times a year, monthly bookkeeping, payroll run and managed, and 1120S tax return preparation — $800/month, everything included, month-to-month. Full detail on S Corp Management →

Why Work With Us

Built for exactly this transition

JLL brokers aren't the first to face this decision, and we've sat on the other side of the table for it many times.

Experience

Fifteen years of this exact move

Hundreds of commission-income brokers, across dozens of states and firms — including W-2-to-independent-contractor conversions.

Specialization

Commission-based real estate pros

It's all we do. Your income pattern, your deductions, your entity questions — we've seen your situation before.

Clarity

Education first

You'll understand your options and your obligations before you commit to anything — in plain language, with the trade-offs stated.

Focus

Advice, not products

Business consulting and tax services. No commissions, no product sales — nothing to steer the recommendation.

Next Step

Convert once. Convert correctly.

Done right, this transition pays you back for as long as you produce. Done casually, it's cleanup. One Fit Call tells you whether the timing and the math work for you — or start with the numbers on the full tax strategy page.

Rather skip the call and get your number? The S Corp Feasibility Analysis — $999, every dollar credited back when you enroll in S Corp Management.