LLC Brokerage Sponsorship
Is An LLC Brokerage Right For You?
This quick questionnaire will determine if LLC Brokerage sponsorship is the best solution for what you are wanting to do.
I will say, we do not offer property management as an option for our LLC sponsorship programs.
We do permit apartment locating LLC’s, but you need to be made aware that you will be responsible for all of the invoicing and collections for the company. Our collections department is only for Spirit Real Estate Group, and that is because we have paid vendor compliance accounts and long-standing relationships with management companies. We could not manage collections for multiple brokerages due to the having to start over.
If you are wanting to build a team of agents and earn commissions splits on their work, another option you may consider is a Team.
Good so far. We allow residential sales and leasing for our LLC sponsorships as long as the records are provided for our record keeping requirements with TREC.
We can allow commercial firms, but there are additional fees and requirements in order to remain complaint with TREC.
- We have an advocate for our company with the required competency review all transactions for a fee. For a list of those fees, go to our commercial page for more info.
- You have to already have plenty of experience at commercial transactions.
How many agents are you planning to bring LLC Brokerage on in the next year?
If you are planning on keeping your team small, you may should consider saving the money (Expected costs are listed below), and setting up a team with TREC. This is free to do with TREC and is perfect for smaller realty teams, and you can still promote your branding and earn splits on agents below you.
All advertising will need to adhere to the TREC advertising rules. Mainly, the broker’s name needs to be on all advertising at 1/2 the size of the largest contact. We do not have any restrictions outside of the TREC advertising rules.
If you have an agent that you are wanting to earn some commission off of the check out our Team option.
Wonderful! If you are planning on growing a good size team then an LLC is perfect for you. We do have some requirements along with the TREC requirements which are there to protect the brokerage and the designated broker. For more information, complete the form and we can provide a checklist which will tell you everything you need to get sponsored.
Do you already have experience as a Real Estate Agent?
Learning Real Estate is quite an undertaking by itself, but to accompany it with starting and running a business is more than I am willing to sponsor. You will need to look into our agent sponsorship program for a time until you are fully competent before starting an LLC Brokerage.
Wonderful! If you already have experience, a great idea for bringing on leads, and know how to run your business, there is less of a burden on you and me as your sponsoring broker.
You are poised for success!
What Do I Need for LLC Brokerage?
What do you have to secure to set up an LLC brokerage?
- LLC Certificate of Formation
- Operating Agreement with a licensed broker listed as a manager
- Errors and Omission Insurance with a minimum $1 million of coverage
- No delinquent taxes owed for the company
- EIN (Employer Identification Number)
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Areas
Realtors
Austin
Dallas/Fort Worth
Greater Houston
Greater Tyler
Lubbock
Midland-Odessa
McAllen
San Antonio
Apartment Locators
Austin
Dallas/Fort Worth
Houston
San Antonio
Expected Costs Yr 1 for LLC Brokerage Setup
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Setup LLC with SOS $300-500
You can do it yourself on the SOS website for $250 plus you will need to add a registered agent which is $49 per year normally.
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Bank Account of LLC $180
$15 per month
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Accounting Software $240
Quickbooks Online is $20 per month base package
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Sponsorship Application Fee $399
This covers the $305 application fee that is sent off to TREC.
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Sponsorship Dues $1788
Monthly dues of $149
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Errors and Omissions Insurance $600
It starts out around $600 annually for a basic realty brokerage.
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MLS $40-500
You already pay your dues if you are a Realtor, but there are some transfer fees, and if you are in Houston you will have to pay for a separate office.
The costs listed are what has been experienced by all of the LLC’s that I sponsor. If you are just getting started and you are planning on growing slow, my recommendation is to start with a basic agent sponsorship and take advantage of our organizational support and just grow your business under a DBA if you are a Realtor. You will save a ton of money and you can still grow your brand!
If all of this was expected an you are still interested in learning more about LLC sponsorship then either complete the form or contact us and we will be happy to setup a free consultation to go over how everything works.
214.396.7998
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