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Opening a Firm

During the 1990s the Commission annually issued licenses to 600-700 new active real estate brokerage firms. In each of those years, an average of 300-400 active real estate firms have gone out of business. While some of these closings undoubtedly resulted from retirement, mergers, and weak local real estate markets, many of these firms probably closed due to poor business planning and shortage of operating capital. Thus, the decision to open a real estate firm requires careful planning and a critical evaluation of the broker's financial position. You should review the "Points to Consider When Starting a Brokerage Firm" section below prior to starting the application.

The application requirements vary depending on the type of business ownership that you plan. Details for completing and submitting the application can be found within the application that can be downloaded via the link below:

Points to Consider When Starting a Brokerage Firm

In deciding whether to start a brokerage firm, a licensee faces several important issues beyond obtaining a licenses from the Commission. The important issues for consideration and resulting action include:

Properly addressing these concerns often requires the assistance of professionals such as attorneys, accountants, and other licensees who operate existing brokerage firms. Simply passing the broker's licensing examination and paying the fee to license a firm is not enough.