Everything you need to form your own real estate brokerage firm and operate as the owner of record.
This guide outlines the process for forming a brokerage in Florida. While forms, fees, and licensing rules vary from state to state, the basic steps apply in every state, and we can help you through the process wherever you plan to operate.
To form a real estate brokerage firm where you are the owner of record, and transact real estate the same way as any other firm (such as Coldwell Banker, RE/MAX, or Century 21), we recommend forming a Limited Liability Company (LLC). Here is an overview of what is involved:
You can file online at sunbiz.org ($125). As part of this process, you must also file for an Employer Identification Number (EIN).
Register your new LLC for a license with the Florida Department of Business and Professional Regulation (DBPR) using Form RE 7 ($77). You will also register your new Broker of Record’s license number with the DBPR using Form RE 13 ($77). Both forms can be downloaded from myfloridalicense.com.
The process is similar in Georgia through the Georgia Secretary of State and the Georgia Real Estate Commission (GREC).
With these two steps complete, you now own a real estate brokerage company.
We recommend that each licensed real estate agent become a member of the local Realtor Association (estimated at $900 per year, paid by each individual agent). As your Broker of Record, we already belong to the Realtor Association.
If you join, your new LLC will pay a fee to register your Broker of Record’s license number with your firm at your Realtor Association. This is usually a nominal fee, since we already serve on multiple Realtor Association boards in Florida. Realtor Associations may also charge a one-time fee of around $300 to open a new real estate office.
You do not want to be in business without this policy. It protects the people within the LLC from civil action arising within the scope of their employment.
We are very familiar with these policies. Based on our current knowledge of the market for a new startup LLC, you can expect an estimated premium of around $500 per year. Premiums depend on your volume of business and the area of real estate in which you perform services.
That is everything you need to become an active real estate brokerage company.
The following details will help round out your knowledge as you get started.
Even if you are not licensed, you can own this LLC, hire agents, and charge them a monthly fee and/or a percentage of their commissions on real estate transactions. As long as your LLC has an active licensed Real Estate Broker of Record as its manager, the company you own can perform all of the legal activities of real estate.
Florida real estate law requires every real estate company to have a primary office. The den in your home can serve as the physical office and address of your LLC, as long as it is one enclosed room in a building of stationary construction that provides the privacy needed to conduct negotiations. The room should include a desk, a computer, and a filing system to maintain records.
We also require that all final real estate closings go through a title company or attorney in Florida, which will handle escrow and the actual transfer of title.
In Florida, Georgia, Ohio, Illinois, and Tennessee, any real estate agent can perform the activities of real estate under the license of an active real estate broker. We serve as the Brokers of Record for multiple real estate brokerage companies and are happy to send you our qualifications and recommendations.
Our primary function is to keep you in compliance with all rules and regulations of the DBPR (Florida), GREC (Georgia), and the Ohio Division of Real Estate and Professional Licensing (Ohio).
If you decide to move forward with forming an LLC and naming us as your Qualifying Broker of Record, there are a few bookkeeping items we will discuss together, such as the operating agreement between the member and the manager of the LLC. We can cover these once you have had time to review the information above.
Contact us to talk through forming your LLC and naming us as your Qualifying Broker of Record.
