To renew a broker license by a business entity, the business entity must provide:
- Proof that the designated broker owns at least 10% of the business entity. If the designated broker does not own at least 10% of the business entity, provide proof that the business entity maintains E&O insurance in the amount of $1 million per occurrence.
- A Franchise Tax Account Status page from the Texas Comptroller of Public Accounts issued within 21 days prior to the renewal application.
- Proof of the designated broker’s current status as an officer, manager, or general partner for that entity.
Examples of acceptable proof of ownership documents include, but are not limited to:
- Minutes of the company meeting designating ownership percentages;
- A Company Resolution indicating percentage owned by the designated broker;
- Articles of Organization/Incorporation that include ownership percentages;
- Schedule K-1, C, or G from the IRS indicating ownership percentages; and
- Limited Partnership Agreement designating ownership percentages.
Examples of acceptable proof of the designated broker’s management authority of the entity will depend of the type of business entity.
- A corporation can submit a Corporate Resolution or Meeting Minutes signed by Directors (Chair or all) or all Shareholders naming the designated broker a President, Secretary, or Treasurer of the corporation.
- A limited liability company (LLC) can submit the Operating Agreement signed by all Members naming the designated broker as Manager, or a Managing Member of the LLC.
- A general or limited partnership can submit the General Partnership Agreement or Limited Partnership Agreement naming the designated broker as General Partner of the partnership.
The same documents listed above are also required to obtain or maintain a license, and to change the business entity’s designated broker.
If the ownership percentages or management authority designations have not changed, you may find yourself sending in the same documents that you submitted for your last renewal.
Business entity renewal notices, online and paper renewal applications, and the TREC website list the documents required for renewal, but if you still have questions, do not hesitate to email us at email@example.com and include “Business Entity Broker” in your subject line.