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Legalities of how I can use my LLC? Commercial Real Estate Brokerage California

Los Angeles, CA |
Filed under: Real estate

I am a California Real Estate Broker. I just filed my LLC-1 with the state (CA) and it is approved and ready to be used.

Am I able to begin using my LLCs name on contracts (i.e. commission agreements) or do I need to register the LLC with the DRE (or do anything else to begin using my LLC name instead of my own personal name)?

Please advise...


Attorney Answers 1


Unfortunately, you cannot do business which requires a brokers license in California as an LLC- it has to be a corporation. A corporation may be a real estate licensee if it is qualified by an officer who is a licensed broker. A corporate real estate broker can operate only by and through the license of a responsible managing officer; if there is no licensed officer, the corporation cannot perform licensed activities. The corporation must be created, and then the corporation must submit to DRE a corporate license application You also submit a corporate background statement.

If you own investment properties, you might want to consider holding them in the new LLC you created.

The content of this comment contains general information based on California law and is provided for informational purposes only, and should not be construed as legal advice on any subject matter. You require specific legal advice and should not rely on general information provided in response to a question posted on Avvo. You should consult with an attorney to discuss the matter and for any specific legal advice.

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If the corporate real estate broker intends to do business in multiple states (outside of CA), can the corporation designate different officers as the principal brokers for those other states (assuming the corporation is registered to do business in those other states, and those other officers are licensed brokers in those other states)?

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