What Types of Business Entities Can a Real Estate Professional Form in Florida? - EPGD Business Law (2024)

FAQs

Can licensed professionals form an LLC in Florida? ›

Florida does allow professionals, such as accountants, attorneys and physicians, to form a professional limited liability companies (PLLCs).. After forming a limited liability company (LLC) , you must undertake certain steps on an ongoing basis to keep your business in compliance.

However, according to Florida Statute 475.161, a broker associate or sales associate may be licensed as a professional corporation (PC), a limited liability company (LLC), or a professional limited liability company (PLLC), if such status has been authorized by the Department of State.

Business structures; entities that may register as a brokerage. A Florida real estate broker may not register the following entities as brokerage business : a corporation sole, joint venture, business trust, Cooperative Association, unincorporated association, or an ostensible partnership.

The distinguishing aspect of a professional company is the owners, either members of shareholders, are licensed in the profession their business practices, i.e. owners may only be lawyers, doctors, accountants, etc.

What makes a Florida PLLC Different from a Florida LLC? The extent of liability protection is the main difference between a PLLC and an LLC in Florida. In most cases, you'll also need to provide your licensing credentials to the state before you can form a PLLC.

A professional association, often called a professional corporation in many states, is formed by individuals licensed in professions like law or medicine. They provide liability protections to these business owners.

Every business structure has advantages and disadvantages; however, for most real estate agents and brokers, using an S corporation or LLC is the best option.

A business entity with an active Florida filing or registration may serve as a registered agent. An entity cannot serve as its own registered agent. However, an individual or principal associated with the business may serve as the registered agent. The registered agent must have a physical street address in Florida.

Only real estate brokers can own and maintain a real estate office in Florida. A broker is someone with a minimum of two years real estate sales experience, who has completed advanced coursework, and passed the 72 Hour Broker Pre License Course, as well as the state exam, to become a licensed real estate broker.

Final answer: Sole proprietorships may not register to broker real estate with the Department of Business and Professional Regulation, unlike corporations, LLCs, and general partnerships which can.

What are entities in real estate? ›

Real Estate Entity means any person including, but not limited to, any partnership, corporation, limited liability company, trust, other entity, or multi-tiered entity, that exists or acts substantially for the purpose of holding directly or indirectly title to or beneficial interest in real property.

Dual agency refers to a situation where a real estate agent or broker represents both the buyer and the seller in a real estate transaction. However, Florida law prohibits this practice due to potential conflicts of interest that may arise.

Professional entity means an entity formed for the sole and specific purpose of rendering professional services, allied professional services, and services ancillary to the professional services and that has as its interest holders only: Sample 1Sample 2Sample 3.

PC is a solid choice for licensed professionals who want to run a joint venture with others. LLC is a cost-effective option for sole business owners to gain personal liability protection and then attract extra business members should they need to.

Formation and Membership: The Act allows for the formation of an LLC by one or more members. Members can be individuals, corporations, other LLCs, trusts, estates, or any other legal or commercial entity. There is no requirement for members to reside in Florida or be U.S. citizens.

Florida law does not prohibit the corporate practice of medicine, but does prohibit “fee-splitting” by health care professional. Florida does prohibit the corporate practice of dentistry and optometry.

While there's no legal requirement to hire an attorney when forming an LLC, it's a good idea to speak to a business lawyer to confirm whether it's the right business structure for your circ*mstances.

Section 61H1-26.001 - Form of Practice and Name-Shared Office Space (1) A Florida certified public accountant may practice public accounting, whether as an owner or employee, only in the form of a proprietorship, a partnership or a corporation, or a limited liability company.