Real estate

Can an LLC operate as real estate brokerage in CA , if not what is a work around for that ?

San Francisco, CA -

Attorney Answers (3)

Shawn Matthew Olson

Shawn Matthew Olson

Real Estate Attorney - Huntington Beach, CA
Answered

No; a real estate brokerage has to either be a corporation or a sole proprietorship.

The above is intended only as general information, and does not constitute legal advice. You must speak with an... more
Michael T Millar

Michael T Millar

Real Estate Attorney - Toms River, NJ
Answered

I am not a licensed CA attorney. You should consult a local attorney.

It is my understanding that CA does not permit licensed professionals to operate as LLCs. The work around is to form and operate as an S Corp. (Cal. Corp. Code ยง 17375. 87 Ops. Cal. Atty. Gen. 109, Opinion No. 04-103 (2004)

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Brian Leigh DeWitt

Brian Leigh DeWitt

Real Estate Attorney - Napa, CA
Answered

No. The California Department of Real Estate (DRE) will not issue a real estate broker's license to a LLC. It will issue a broker's license to a corporation. The corporation must have a designated officer who is a licensed broker. You do not have to operate the brokerage through an entity however. A sole proprietorship works.

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Sole proprietorship small business

A sole proprietorship is a business owned and operated by one person in which there is no legal distinction between the business and owner.

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Small business s-corporation

An S corporation does not pay federal income taxes, instead passing its income, losses, deductions, and credits through to its shareholders.

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