FAQs

• How do I know if an S Corp makes sense for my Gross Commission Income (GCI)?

  If you're a 1099 agent with consistent net income after your split and expenses, an S Corp can significantly reduce your self-employment tax. The structure splits your income into W-2 salary and owner distributions; only the salary is subject to SE tax. Lettuce helps you determine whether the math works for your specific GCI, commission split, and expense profile, then handles setup, payroll, bookkeeping, and filing so the structure actually works in practice.

• How does Lettuce handle lumpy commissions, seasonality, and quarterly taxes?

  Real estate income doesn't arrive on a schedule, and most generic bookkeeping tools aren't built for that. When a closing hits, Lettuce automatically updates your books and sets aside a portion for taxes. We help you stay ahead of quarterly estimates so you avoid surprise bills and keep cash flow predictable even when income isn't.

• I’m a 1099 agent on a team. How do team splits, referral fees, and broker fees work in Lettuce?

  Lettuce is designed for how agents actually get paid. We can track your inflows and categorize them so you can see your Gross Commission Income (GCI) alongside your various operating expenses and commission splits, referral fees, and payments for broker fees, desk fees, and franchise fees. With Lettuce, you can open your dashboard and understand what happened with every commission check, without having to rebuild the story at tax time.

• Can Lettuce track commission checks and categorize broker splits automatically?

  Yes. When your commission check lands in your business account, Lettuce keeps a clean record of the deposit and ties it into your bookkeeping so you are not manually reconciling closings. You will still have the ability to tag and adjust categorization when you need to, but the default workflow is built to reduce the expenses and splits cleanup that most agents deal with.

• What expenses can I deduct as a real estate agent, and how does Lettuce keep them organized?

  Most agents and brokers are missing deductions, managing a pile of receipts, or wasting time trying to reconstruct them from memory. Lettuce’s integrated bookkeeping system organizes your deductions in real estate-native categories so you can track spending the way you actually run the business, including:

  • Marketing and lead gen spend (Zillow, postcards, Facebook/Meta ads)

  • Staging, photography, videography, lockboxes

  • Brokerage fees, E&O insurance, MLS dues, association dues

  • Client gifts and closing gifts

  • Open house expenses, signage, yard signs

  • Car mileage vs actual auto expenses (gas, lease, maintenance)

  You get clean books all year and a tax-ready view at year end, without digging through receipts.

• Do you support car mileage vs actual auto expenses, and how do I choose?

  Yes. Real estate agents often drive significant miles for showings, open houses, and client meetings. Lettuce helps you track mileage throughout the year so you have what you need to make the right call at tax time. The standard mileage rate is simpler and usually better for high-mileage drivers. Actual expenses (gas, lease, insurance, maintenance) can produce a larger deduction in some cases, particularly if you drive a vehicle used almost exclusively for business. Lettuce can help you evaluate which method works in your favor based on your real numbers.

• What if I already have an LLC? Can you file the S Corp election for me?

  That’s our sweet spot. If you already operate as an LLC, Lettuce can help handle the S Corp election and then run the operational pieces that make it work: compliance, bookkeeping, payroll, and business tax filing. Most people can form an LLC, but the ongoing back-office needs and filings can become a burden. Lettuce is designed to keep the structure correct month after month.

• How long does setup take and what do I need from my brokerage?

  Setup is straightforward. You will share basic details about how you are paid (for example, commission deposits from your brokerage into your bank account, plus any referral income or side income like coaching). If you are moving to an S Corp, we will also collect the information required to set up payroll and filings. From there, we’ll provide you with a business bank account and a full dashboard to review your books. Most agents are up and within 1-2 weeks.

• Can I keep my personal tax accountant and still use Lettuce for the business side?

  Absolutely. Many agents keep a personal accountant for their household return while using Lettuce to run the business system behind their real estate income. Lettuce keeps your business books and business filings clean so your personal tax prep becomes simpler, faster, and less error-prone. If you prefer one integrated system instead, Lettuce can cover both.

• What if my income is inconsistent or seasonal?

  This is the reality for those working in real estate. Fortunately, Lettuce is designed for lumpy commission income, so your bookkeeping, tax set-asides, and payroll stay aligned even when closings come in waves. When a commission check hits, your dashboard updates automatically so you can see what is available for expenses, what to set aside for taxes, and what you can pay yourself. The goal is to reduce “surprise tax bills” and help you run your business with a steadier plan even when income is not steady.

• Can Lettuce help me get better health coverage as a 1099 agent?

  Lettuce helps independent agents access healthcare coverage with better structure than shopping alone on the individual market. Depending on your situation, options can include individual and family supported plans. As a Lettuce Pro member, realtors can obtain group-rate healthcare at lower prices and higher quality than what is commonly available on the ACA marketplace.