Starting a real estate company is one of the most common businesses that people form. If you’re planning to set up your own, then you might be wondering where to start and what paperwork is required. From understanding what is required for registration and how much space is needed, for legal matters and the ongoing finances, read on to learn how to set up your real estate company.

The infrastructure of your real estate company

You must first consider the type of business you will establish. Before registering your firm with the state, you must decide on the entity type. Find out which paperwork and documents you need to register your real estate company.

Forming a limited liability company is one popular choice for a real estate company (LLC). An LLC offers more tax flexibility than a corporation. A non-incorporated association is another alternative.

You will also need business premises and employees if you aren’t planning on running the office solo. A VA is an excellent alternative to employing staff as you’re getting up and running, so finding one who is experienced in real estate can be a good move. If you do hire employees, there are rules on what type of space you need for them to work from and so bear this in mind when choosing your office space.

Another consideration is setting up a website and having an online presence. Many people look for houses online in their local area when wanting to move. You need to build real estate website to give your new company the best chance at succeeding.

Basic requirements for registration

All real estate companies in the United States, including residential and commercial, must register with the appropriate state.

The following are some of the basic requirements for registration:

• You must have a physical address on file.
• You need to have bank statements and accounting records that show your company’s activity for three months before filing for registration.
• You will need to provide an EIN from the Internal Revenue Service (IRS) to file your documents with the state. In some circumstances, you may also need an Employer Identification Number or a Social Security Number (SSN) if you are running this business as a sole proprietorship or partnership.

Legal matters

There are many legal requirements for starting a real estate company. For instance, you’ll need to apply with the California Department of Real Estate (DRE) to form a company. The DRE will require that you submit information about your company’s management and its purpose to operate as a real estate company.

Some laws govern how agents can do business and what they can charge for their services and rules that make sure that agents have the necessary qualifications to practice. This will vary depending on whether or not the agent is licensed.

Each state has varying legal requirements and making sure you know what laws you need to follow before starting up can help you avoid losing your license before you have even made a sale.

Image source: Pexels.com