Legal Question in Business Law in California

Can a Real Estate Broker start an LLC under California Law? Reason I'm asking is I was trying to do it online, and one of the questions was, if there was a license involved with the corporation. I answered yes, because I have a Real Estate Broker's license, and it said, "California does not allow licensed professionals to form an LLC to provide professional services."


Asked on 11/17/16, 9:34 am

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Well, a real estate broker may form an LLC ....... but the LLC may not render professional services such as conducting a real estate business. See Corporations Code sections 17701.04(c) and 13401(a).

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Answered on 11/17/16, 10:33 am

It depends on what you want to form the LLC for. The website is correct that you cannot form a LLC to provide real estate brokerage services or any other services for which you have your broker's license. You can only form a sole proprietorship, a general partnership, or a Professional Corporation for that purpose. You can, however, form an LLC for other purposes. One is not barred from forming any LLC at all just because they have a professional license. Only forming an LLC to provide the licensed services is prohibited.

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Answered on 11/17/16, 10:33 am


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