Q: I’m a broker associate, and I recently heard through a friend that a broker associate or a sales associate may set up a corporation in order to collect commissions. What kind of corporations am I, as a broker associate, permitted to form?
A: Section 475.161, Florida Statutes, provides that FREC “shall license a broker associate or sales associate as an individual or, upon the licensee providing the commission with authorization from the Department of State, as a professional corporation, limited liability company or professional limited liability company. A license shall be issued in the licensee’s legal name only and, when appropriate, shall include the entity designation.” Thus, a broker associate or sales associate may create a limited liability company, a professional limited liability company or a professional corporation in the licensee’s legal name in order to collect his or her commission.