Starting a Florida Real Estate Company

Steps to Form a Real Estate Brokerage Firm:

To form a real estate brokerage firm in which you would be the owner of record, and be able to transact the activities of real estate similar to any other firm, there are three things that need to be done.

1. Get your company set up within the state you plan to transact your real estate business. If you plan to work in more than one state, you will need to do this in each state.

2. Have a Qualifying broker ready to go.

3. Apply with the real estate commission. You will need to have the company set up and approved by the secretary of state and the Qualifying broker in order to do this.

With the above three steps you now own a real estate brokerage company. Other steps that I highly recommend:

3. Access to the Multiple Listing Service. We recommend that every licensed real estate agent become a member of the local Realtor’s Association. Each individual agent would pay for this. All MLS costs associated with the Qualifying broker are the responsibility of the company the broker works for.

4. Professional Errors and Omissions Liability Policy. You don’t want to be in business without such a policy. This protects the people within the LLC from any civil action within the scope of their employment and protects the broker. Many brokerages set this up as a profit center and charge each agent for the coverage.

5. Even if you are not licensed, in most states (not all) you could own this LLC, hire agents, and charge them a monthly fee and/or a percentage of their commissions for real estate transactions. So long as your LLC has an active licensed Real Estate Broker of Record as your manager, this company that you own can perform all of the legal activities of real estate.

6. What about a physical office? In many states, it can be a home office and in most cases be an out-of-state office. The den in your residential home can be the actual physical office and address if it meets the individual state’s requirements.

7. Finally, if you decide to form an LLC and make one of our brokers your Qualifying Broker of Record, there are some bookkeeping items we need to discuss (i.e.; operating agreement between the member and the manager of the LLC). However, we can discuss this at any time that works for you.