An LLC is created with the Secretary of State and then licensed by TREC as a Business Entity LLC Brokerage. One of Drop Your Broker’s principals serves as the sponsoring broker to the LLC and the LLC serves as broker to the agents. The owner (usually the person making this request) owns the LLC/Brokerage. Drop Your Broker has no ownership in the LLC. A Drop Your Broker’s Principal is listed as a managing member (this is required by TREC) and serves as sponsoring broker for you.
There is an optional one-time set-up fee of $1,000, which includes the Secretary of State’s filing fees and TREC’s filing fees. The remainder is for Drop Your Broker’s time for licensing the LLC, setting up the LLC’s MLS access with your local board of realtors, providing an Office Policy Manual, and other materials Drop Your Broker has prepared. We then charge $199 per month for the first agent and $100 per month for each additional agent. If you would prefer to do the setup yourself, then that is an option. You may use our Starting a New Business Guide for the process. We will help you each step along the way!
The monthly fee of $189 commences once you are ready to move your license under your new TREC LLC.
The process takes approximately four weeks to complete. We suggest agents “stay put” with their current broker until their new company is ready and licensed. If you are in a situation and need to move, Drop Your Broker will sponsor you under Our Texas Real Estate until your company is ready and licensed.
The owner/manager will be responsible for procuring their own E&O insurance. Providing proof of E&O Insurance is required as part of the TREC BE LLC application submission.
The owner owns 100% of the LLC as well as its listings, buyers, leads, and commissions. Pursuant to TREC rules, the broker acts as a manger of the LLC so that they can act as sponsoring broker.
TREC will contact both of us with company matters. They will contact you for your individual matters.
Your LLC name will be listed as the Listing or Other Broker.
You generate your own CDA. We are paid through monthly invoicing/credit card payment process. However if a title company wants a document explaining our business relationship, we can provide that upon request.
Yes, your LLC is your company name.
Yes, you will have input control. You will be the “Office Manager,” which allows you complete control over your listings.
No, you determine your physical office address. Under the LLCSP, if you intend to open multiple office locations, a Branch Office license will also be required. Please notify us if this is the case and provide the appropriate application fees and we will fill out the required forms and submit to TREC.
We will not accept agents with negative TREC Enforcement Notice issues against them during the 12 months preceding request for sponsorship. Additionally, we will not sponsor agents with unresolved or outstanding TREC complaints.