Required Documents for Sponsorship of Entity:
A complete package includes the following:
Step by Step Instructions
If you have questions or concerns call, email or begin a CHAT session.
(855) 914-4700 or firstname.lastname@example.org
Step 1 – Determine Your Brokerage Name
This is the foundation for YOUR Company and YOUR brand. Take ample time to ponder the name because it will identify your business for years to come. This will also be on your websites, business cards, marketing material, signs, logos, etc. We suggest searching for a viable name on the Louisiana Secretary of State website (geauxBIZ) or you can call their office at 225-925-4704. Be careful not to use a similar name of any other LLC in Louisiana or assumed name (SOS DBA) as there is a chance, they won’t approve yours.
Step 2 – Obtain a Certificate of Formation for Your Broker Company (LLC)
Once you have determined the name of your broker company, you will need to draft “Articles of Organization” for your business entity. The articles must include Daniel E. Smith as a “Manager” having 0% ownership in your company. You can add yourself and others as Managers with 100% ownership divisible how you see fit. Now, for a onetime fee of $100 you are ready to obtain the Certificate of Formation. Go to the Louisiana Secretary of State website (geauxBIZ) or you can call for instructions 225-925-4704. Typically, within 7 business days the SOS will send notification of approval or conditions for approval. We also recommend you file an assumed name (DBA) for your LLC for future use. Example – if your company is ABC Realty LLC, you will want to do business as “ABC Realty”. This can also be done through (LREC Company Name Change Form) for a nominal fee of $25. The Broker Company License will be issued and printed in your chosen Company Name.
Step 3 – Acquire E&O Insurance for the Broker Company
LREC requires all Broker Companies to purchase and maintain E&O Insurance in the amounts listed on their website (LREC E&O Insurance). As stated in your “Articles”, the Sponsoring Broker will NOT own any of your company so you must acquire and maintain insurance.
Step 4 – Complete Application for “Broker Company License”
Congratulation, you are almost there! Download and complete the Initial Real Estate Broker License Application then scan and email directly to us at email@example.com, the sponsoring broker will sign and return. Remember, LREC requires the designated broker to be listed as a manager for the brokerage they are sponsoring. If you formed an LLC without naming Daniel E. Smith as a manager, then LREC will not issue your broker company license. You would then need to amend your existing “Articles of Organization” (or operating agreement) to include Daniel E. Smith as a manager. The effective date of your sponsorship will begin the date LREC issues your Broker Company License. The first monthly payment will be due the date of license issuance and each month thereafter. See Sponsorship Agreement for payment options.
Step 5 – Obtain an EIN number for your business entity for IRS and Banking
We highly recommend you request an EIN from the IRS by filling out form SS-4. This can be easily filled out online and an EIN will be generated very quickly. Using the EIN along with your LLC ownership papers, you can open a company bank account. Refer to LREC requirements however, we suggest (3) accounts including checking, savings and a trust account to avoid comingling of funds.
*NOTE: We do NOT allow property management activities or creative methods like wholesaling, assignments, or seller (owner) financing. All residential transactions must be completed using the most recent LREC promulgated forms. See Sponsorship Agreement for greater details.