Can a sales agent own his or her own real estate business entity?
Yes, a sales agent can own his or her own business entity. The entity must, if it engages in real estate brokerage, hold a separate license. The entity must have a designated broker through whom all transactions must be handled and who is responsible for the entity's (and any sponsored sales agent’s) actions. The specific details of the supervision that the sales agent’s sponsoring broker exercises over the sales agent’s actions should take into consideration the sales agent’s experience and ability, acknowledging the fact that the broker is responsible for the sales agent’s actions, and should be described in a written agreement between the sales agent and the sales agent’s sponsoring broker. The sales agent’s agreement should also address how compensation is handled with the broker. For additional information, read Rule 535.2 regarding broker responsibility. See also Rules 535.154 and 535.155 regarding advertising.