An LLC is created with the Secretary of State and then licensed by TREC as a Business Entity LLC Brokerage. One of Drop Your Broker’s principals serves as the sponsoring broker to the LLC and the LLC serves as broker to the agents. The owner (usually the person making this request) owns the LLC/Brokerage. Drop Your Broker has no ownership in the LLC. A Drop Your Broker’s Principal is listed as a managing member (this is required by TREC) and serves as sponsoring broker for you.
What is the cost of an LLC Sponsorship by Drop Your Broker?
There is an optional one-time set-up fee of $1,000, which includes the Secretary of State’s filing fees and TREC’s filing fees. The remainder is for Drop Your Broker’s time for licensing the LLC, setting up the LLC’s MLS access with your local board of realtors, providing an Office Policy Manual, and other materials Drop Your Broker has prepared. We then charge $199 per month for the first agent and $100 per month for each additional agent. If you would prefer to do the setup yourself, then that is an option. You may use our Starting a New Business Guide for the process. We will help you each step along the way!
When does the monthly fee start?
The monthly fee of $189 commences once you are ready to move your license under your new TREC LLC.
How long does it take to set up an LLC?
The process takes approximately four weeks to complete. We suggest agents “stay put” with their current broker until their new company is ready and licensed. If you are in a situation and need to move, Drop Your Broker will sponsor you under Our Texas Real Estate until your company is ready and licensed.
What about E&O Insurance?
The owner/manager will be responsible for procuring their own E&O insurance. Providing proof of E&O Insurance is required as part of the TREC BE LLC application submission.
Does Drop Your Broker own any part of my entity?
The owner owns 100% of the LLC as well as its listings, buyers, leads, and commissions. Pursuant to TREC rules, the broker acts as a manger of the LLC so that they can act as sponsoring broker.
How are official items from TREC handled?
TREC will contact both of us with company matters. They will contact you for your individual matters.
What about E&O Insurance?
Sales agents are covered under Our Texas Real Estate's E&O Insurance. The cost is included in the monthly or annual fees paid.
Do you have any ethical requirement for sponsorship?
We will not accept agents with negative TREC Enforcement Notice issues against them during the 12 months preceding request for sponsorship. Additionally, we will not sponsor agents with unresolved or outstanding TREC complaints.
What about Board Association Membership and Dues?
Our Texas Real Estate has membership in the following Realtor Associations: Houston Area Realtors, Austin Board of Realtors, Dallas - MetroTex, Lubbock Association of Realtors, Greater El Paso Association of Realtors, Corpus Christi Association of Realtor, Central Texas Association of Realtor, Amarillo Association of Realtors, Collins County Association of Realtors, Wichita Falls Association of Realtors, Kerrville Board of Realtors, and Fort Hood Association of Realtors. As we enter a new area of Texas we happily join the necessary boards. We maintain our membership and provide MLS access, however the agent is responsible for their own membership dues and any lockbox or security key fees.
Is office space provided?
No, you determine your physical office address. Agents may choose to open their own offices or work from home. If you intend to conduct business from an office location where you meet with the public to transact business, TREC requires the broker (Our Texas Real Estate) to obtain a Branch Office license for this location. (Rule 535.112). The fee for this application is $20.