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How to Apply for a Business Entity License

Please Choose Either Texas or Foreign (Out of State) Requirements




A business entity must be qualified to transact business in Texas. A Franchise Tax Account Status page from the Texas Comptroller of Public Accounts issued within 21 days of the application must be submitted as evidence of being qualified to transact business in Texas.

An application by a corporation, LLC, partnership or foreign corporation cannot be approved unless its designated officer, manager or partner is individually licensed as an active Texas real estate broker. Proof that the designated broker is a managing officer, manager, or general partner of the business entity must also be submitted. If the designated broker does not own at least 10% of the entity, the entity must maintain E&O insurance in the amount of $1 million. Attach the Certificate of Insurance for a Broker Business Entity form to the application if applicable. If the designated broker owns 10% or more of the entity, please provide proof of ownership. Examples of acceptable proof of ownership documents are as follows but are not limited to:

  1. Minutes of the company meeting designating ownership percentages
  2. A Company Resolution indicating the percentage owned by the designated officer/manager/partner
  3. Articles of Organization/Incorporation that include ownership percentages
  4. Schedule K-1 (Form 1065) from the IRS (Shareholder's share of income, deductions, credits, etc.)
  5. Schedule C (Form 1040) from the IRS
  6. Limited Partnership Agreement designating ownership percentages

To qualify for, maintain, or renew a license, a business entity must designate an individual who holds an active Texas real estate broker license and who is in good standing with the Commission to act for it. An individual licensed broker is not in good standing with the Commission if:

  1. the broker's license is currently on probated revocation or suspension;
  2. a business entity licensed by the Commission while the broker was the designated broker for that business entity had its license revoked or suspended, including probated revocation or suspension, in the past two years;
  3. the broker has any unpaid or past due monetary obligations to the Commission, including administrative penalties or recovery fund payments;
  4. a business entity licensed by the Commission has any unpaid or past due monetary obligations to the Commission, including administrative penalties or recovery fund payments, that were incurred while the broker was the designated broker for the entity.


Texas Real Estate Broker License by a Business Entity Application Requirements

When a Texas Business Entity files an application to become a broker, it must provide TREC with documents listed above along with the application form.

Applicants for a business entity broker license may alternatively file and pay for the application online, but must then submit the required documents to TREC by email to information@trec.texas.gov or by fax to (512) 936-3864.




Foreign (Out of State) Business Entity Application Requirements

A foreign business entity may apply for a business entity broker license in Texas if the entity:

  1. is licensed as a broker in the state in which it was created or chartered;
  2. is licensed as a broker in a state in which it is permitted to engage in real estate brokerage business as a foreign business entity; or
  3. was created or chartered in a state that does not license business entities and the entity is lawfully engaged in the practice of real estate brokerage in that state.

When a foreign (out of state) Business Entity files an application to become a Texas broker, it must provide TREC with the required documents listed above. If licensed in another state, a real estate license history must also be submitted with the application.




Submit Documents And Applications On Plain Paper. Do Not Send "Thermal" Type Paper.


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