Required Documents for Sponsorship of Entity:

A complete package includes the following:

TREC Rules §535.2(h) required by the Texas Real Estate Commission, enumerates a minimum list of required records and include the following:

Step by Step Instructions

If you have questions or concerns call, email or begin a CHAT session.
(855) 914-4700 or info@createyourbrokerage.com

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 Texas Secretary of State website (SOS Direct) or you can call their office at 512-463-5555. Be careful not to use a similar name of any other LLC in Texas or assumed name (DBA) as there is a chance, they won’t approve yours.

Step 2 – Obtain a Certificate of Formation for Your Business Entity (LLC)

Once you have determined the name of your brokerage, 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. Go to the Texas Secretary of State website (SOS Direct) or you can call for instructions 512-463-5555. Typically, within 3 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 (SOS Direct) for a nominal fee of $25. The Business Entity License will be issued and printed in your chosen Company Name.

Step 3 – Acquire E&O Insurance for the Business Entity

TREC requires all business entities to provide proof of and maintain E&O Insurance in the amount of $1,000,000 if the Individual Broker sponsoring the Business Entity owns less than 10% of the company. As stated in your “Articles”, the Sponsoring Broker will NOT own any of your company so you must acquire and maintain insurance. TREC requires the BE COI-1 form be filled out by your E&O insurance agent and included with your application. 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 BBE-9 form then scan and email directly to us at info@createyourbrokerage.com, the sponsoring broker will sign and return. Remember, TREC 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 TREC will not issue your business entity broker 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 TREC issues your Business Entity 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 TREC 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 TREC promulgated forms. See Sponsorship Agreement for greater details.

Brokerage Sponsorship

As low as
Per Month (includes one owner)

That’s all we charge to sponsor YOUR company. NO setup fees, NO annual fee, NO broker splits, NO transaction fees …

We have multiple Brokers that have been in the Real Estate Industry since 1997. Our Brokers have diverse experiences and knowledge in Residential and Commercial transactions. Our Brokers also maintain additional licenses which include Appraiser, Professional Inspector and State Certified Instructor.

Contact Info:

594 Sawdust Rd. The Woodlands, TX 77380