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

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Attorney answers 3


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 § 17375. 87 Ops. Cal. Atty. Gen. 109, Opinion No. 04-103 (2004)

If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education purposes only. It neither creates an attorney-client relationship nor provides legal guidance or advice. The answer is based on the limited information provided and the answer might be different had additional information been provided. You should consult an attorney.


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 attorney to discuss your individual case.


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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