Which organizational structure can a real estate agent utilize while working under a broker?

A real estate agent working under a broker has the flexibility to operate in different capacities, primarily as either an employee or an independent contractor. This versatility allows agents to choose working arrangements that best suit their career goals and personal preferences.

In many cases, brokers prefer to hire agents as independent contractors because this arrangement can offer more autonomy for the agents regarding how they conduct their business. Independent contractors have the freedom to set their schedules, market their services, and retain a larger portion of their commissions, though they also bear some of their business-related expenses.

On the other hand, some brokers may hire agents as employees, which typically means greater support and benefits like a steady paycheck, health insurance, and other employee benefits. However, this can also mean less flexibility in terms of how the agent operates their business.

Being able to choose between these two structures provides real estate agents with options that can align with their individual needs and career paths, making this choice particularly advantageous in the dynamic real estate market.