Have you created an LLC, corporation, partnership, or other type of business entity to conduct brokerage activity? Has the LLC, corporation, partnership, or other type of business entity received compensation? Does this business entity have a firm license?
Rule 58A .0502 dictates that every business entity other than a sole proprietorship shall apply for and obtain from the Commission a firm license prior to engaging in business as a real estate broker. Therefore, if you have created an entity to conduct brokerage activity or to receive compensation, you must apply for a firm license.
To complete a firm license application, you must:
- provide the registered legal and assumed name(s) for the business entity;
- provide the SOSID assigned by the NC Secretary of State (not applicable for partnerships);
- provide physical and mailing addresses for all office locations;
- designate a Qualifying Broker (QB)*; and
- designate a Broker-in-Charge (BIC) for each office location.
The firm must have one principal who holds a broker license on active status in good standing to serve as the qualifying broker (QB). The QB is responsible for:
- designating and assuring that there is a BIC for each office location;
- renewing the real estate broker license of the entity each license year;
- retaining the firm’s pocket card at the firm;
- notifying the Commission of any change of business address or legal or trade name of the entity;
- notifying the Commission of their change of status as qualifying broker;
- securing and preserving the transaction and trust account records of the firm whenever there is a change of the broker-in-charge;
- retaining and preserving the transaction and trust account records of the firm upon their termination as qualifying broker;
- notifying the Commission, if upon the termination of their status as qualifying broker, the firm’s transaction or trust account records cannot be retained or preserved; and
- notifying the Commission regarding any revenue suspension, revocation of authority or administrative dissolution.
To apply for a firm license, go to www.ncrec.gov and click on Apply for a Firm License. If you have any further questions about the firm licensing process, contact the Education and Licensing Division at 919.875.3700.