Mississippi

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 Florida Department of State website (Sunbiz), or you can call their office at 850-245-6000. Be careful not to use a similar name of any other LLC in Florida or assumed name (DBA) as there is a chance, they won’t approve yours.

Step 2 – Obtain a Certificate of Formation for Your Real Estate Company (LLC)

Once you have determined the name of your brokerage, you will need to draft “Articles of Organization” for your business entity. As required by FREC/DBPR, your articles must include Daniel E. Smith as a “Manager, Member, Director or Officer” having 0% ownership in your company.  You can add yourself and others as “Shareholders” having 100% ownership divisible how you see fit. Now, for a onetime fee of $125 you are ready to obtain the Certificate of Formation. Go to the Florida Department of State website (Sunbiz LLC) or you can call for instructions 850-245-6000. Typically, within 5 to 7 days the FDOS will send notification of approval or conditions for approval. We also recommend you file for a “fictitious name” similar to a (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 (Sunbiz LLC) for a nominal fee of $50. The Business Entity License will be issued and printed in your chosen Company Name.

Step 3 – Acquire E&O Insurance for the Real Estate Company (recommended not required)

FREC does not require a real estate company to provide proof or and maintain E&O Insurance however, we STRONGLY recommend a minimum policy of $1,000,000. As stated in your “Articles”, the Sponsoring Broker will NOT own any of your company so for your own protection you should acquire and maintain E&O insurance. Depending on the number of agents you plan to have, annual policies start around $300 and go up! We can give you a few great providers to choose from, but we recommend you shop providers yourself.

Step 4 – Complete Application for “Broker License by Business Entity”

Congratulation, you are almost there! Download and complete the RE-7 form then scan and email directly to us at info@createyourbrokerage.com, the sponsoring broker will sign and return. Remember, FREC/DBPR 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 FREC/DBPR will not issue your real estate 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 FREC/DBPR issues the Corporate Broker 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 FREC 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 FREC promulgated forms. See Sponsorship Agreement for greater details.