Show Broker Entities Salesperson Entities Form of Entity – The PLC or PC Use of an entity allows the agent to receive compensation (commissions) from the employing broker through the entity, which is specifically permitted by A.R.S. § 32-2125(B), and to pay employees and expenses through the entity. The entity may elect to be taxed as either a sole proprietorship or corporation (presumably subchapter S) in the case of a single agent member or shareholder, or as a partnership or corporation in the case of two or more agent members. It is often advantageous (tax-wise) for an individual licensee to form a PLC or PC and elect subchapter S status for the entity. Further, the PLC or PC will afford some protection from liability, though these “professional” entity forms do not offer the broad protection from personal liability offered by an LLC or non-professional corporation. For example, a member of a PLC will still be liable for his or her own malpractice as well as for the malpractice of those persons under his or her direct supervision and control while performing professional services on behalf of the entity. A.R.S. § 29-846. However, the member(s) of a PLC and the shareholder(s) of a PC are protected from personal liability for the contractual obligations of the entity (e.g., office lease, car lease, other business debts) unless they have personally guaranteed the obligations. As well, they are not personally liable for liabilities of the entity not arising out of professional services (e.g., accidents on business premises). The limited protection from personal liability for acts of other persons in the PLC or PC may be helpful for purposes of avoiding general partnership liability that might otherwise arise under certain circumstances. It is now a common practice for agents to combine under “teams” or “groups” to promote their real estate services1. While agents who work together under the same employing broker are not automatically “partners,” there is a case to be made that real estate agents who work together and promote themselves as “teams” or “groups” and share their commissions have formed a partnership. There are no Arizona cases supporting this proposition, however, under the general partnership statutes a partnership may be deemed to exist even absent a written agreement or commitment between the “partners”; under the partnership statutes, “the association of two or more persons to carry on as co-owners a business for profit forms a partnership, whether or not the persons intend to form a partnership.” A.R.S. § 29-1012(A). Partners are jointly and severally liable for the obligations of their partnership enterprises. Principals Employing Broker Name 1 Use of the “team” or “group” moniker was previously specifically permitted under former A.A.C. R4-28-502(K). That provision has been deleted from the present Commissioner’s Rules. The Arizona Department of Real Estate still considers such “team” or “group” designations to be permissible, though they are no longer addressed in the Rules. Mike has represented real estate agents, developers, mortgage brokers and lenders since 2002. Prior to that time he represented the Arizona Department of Real Estate, and the Arizona Department of Financial Institutions, as an Assistant Attorney General. His office number is (602) 274-9417, email .Can an LLC be a real estate broker in Florida?You can set up a real estate LLC in Florida by registering the Articles of Organization with the FL Department of State.
Which type of business brokerage entity is not required to file with the Florida Department of State?Which type of business brokerage entity is NOT required to file with the Florida Department of State? The answer is general partnership. A general partnership is created by a contract that may be written, oral, or implied from the conduct of the parties.
Who is exempt from holding Florida real estate license?EDUCATION EXEMPTIONS: If you hold a 4 year degree, or higher, in real estate you may be exempt from the pre-license education requirement. In order to determine your exemption please submit an original certified transcript with your application for review.
Do I need a real estate license to sell a business in Florida?An active Florida real estate sales associate license is required when you represent a buyer or seller in a real estate transaction, including listing, selling, purchasing, leasing, lease options and renting, and earn a commission for services rendered.
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