In what could be considered a game-changing move for the real estate industry in Austin, licensees in the state are now afforded a new opportunity: the ability to register certain LLCs and S-Corps with the Texas Real Estate Commission (TREC) to accept compensation. This pivotal change means licensees are now given the chance to expand their professional structure and enrich potential profit streams. However, there are conditions that must be met: the registered entity cannot conduct any other brokerage activity and must have a minimum of 51 percent owned by the licensee on whose behalf the entity would receive compensation.
Just how does one go about achieving this registration? All potential applicants need to email one of several stipulated pieces of documentation to TREC post-application and payment. This includes a copy of the Certificate of Formation or Certificate of Amendment(s) as filed with the Texas Secretary of State or through a Franchise Tax Account Status. Moreover, the licensee must provide clear evidence to demonstrate that they own at least 51 percent of the LLC or S-Corp. Acceptable forms of proof range from a Company Agreement or Company Resolution to IRS schedules such as Schedule K-1.
In essence, this crucial change in policy shift might open doors for many realtors in Texas looking to diversify their income and expand their professional portfolios. Click here for more details about the new business entity registration. And as recognized experts in the field, we at Yee-Haw Development would advise all licensees to familiarize themselves with this new information and consider the strategic possibilities it presents.