Does our brokerage company need its own license if the broker is licensed?

In Texas yes: all business entities engaged in brokerage, including partnerships, must be licensed, and an entity that receives compensation on behalf of a license holder must be licensed as a broker (TRELA §1101.002 and §1101.355). In New York the firm, LLC or corporation is itself the broker under the Real Property Law, with the representative broker holding the license on its behalf. In California a corporation is licensed as a broker through its broker officers.

How often is the entity license renewed?

Texas: every two years, after the notice sent about 90 days before expiry. New York: the broker license term is two years. California: the DRE states that licenses are issued for a four-year period and renews the corporation officer license with form RE 207 or through eLicensing.

What happens when the designated broker leaves?

Texas: file a Change of Designated Broker amendment through the REALM Portal with proof of managing authority and ownership or insurance. California: submit a Corporation Change Application (RE 204A) signed by both the resigning and the incoming designated officer, together with a Corporation License Application (RE 201) if the newcomer has no officer license for the corporation; if the documents are not received together, the corporation's license and its branches, DBAs and employed licensees are cancelled.

Does the entity need continuing education?

The education belongs to the individual. California states that a currently licensed individual broker need not provide evidence of 45 hours of CE to renew a corporation officer license, while a person licensed only as a corporation officer must. Texas ties the entity renewal to the designated broker's active individual license, which itself needs 18 hours of CE per two-year period.

US · Expiry & renewal tracking

Keep the brokerage's own license renewed, not just the brokers'

A corporation, LLC or partnership that carries on real estate brokerage needs its own broker license tied to a designated broker or officer (Texas: TRELA §1101.002); it is renewed every two years in Texas and New York and every four years in California. If it lapses, Texas makes all sponsored agents inactive.

In the United States a business entity that carries on real estate brokerage needs its own license, separate from the licenses of the individual brokers and agents who work through it. Texas states that all business entities engaged in real estate brokerage activity, including partnerships, must be licensed, and that an entity which receives compensation on behalf of a license holder must be licensed as a broker (TRELA §1101.002 and §1101.355). New York defines a real estate broker as any person, firm, limited liability company or corporation that performs brokerage for a fee, and the representative broker applies for and holds the license on behalf of the brokerage. California licenses a corporation as a real estate broker through one or more of its officers who are brokers; all acts of the licensed broker/officers under that license must be performed only on behalf of the corporation.

The entity license always hangs on an individual. In Texas the entity must designate an active individual Texas broker, in good standing, who is an officer, manager or general partner of the entity; the designated broker must be an individual, not another entity, and one broker can be the designated broker for more than one entity. In California the designated corporate officer is responsible for the supervision and control of all licensed activity conducted on behalf of the corporation, and other officers who act in a capacity requiring a broker license must be additionally licensed as officers of the corporation.

Renewal cycles from the official pages read on 14 October 2026: in Texas a business entity broker must renew every two years; TREC sends a renewal notice about 90 days before expiry, renewal is not possible before the notice arrives, and the documents must be uploaded before the expiry date or the license expires. In New York the broker license, including a license held for a firm, corporation or LLC, has a two-year term and the Department of State sends an email and postcard reminder three months before expiry. In California the DRE states that licenses are issued for a four-year period and lists the Corporation Officer Renewal Application (RE 207) among the renewal forms that can also be processed through eLicensing.

This page covers the firm's own license. For the individual broker's license see the separate broker guide, and for sales agents the separate real estate salesperson guide.

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At a glance

Who needs it	A corporation, LLC or partnership that performs real estate brokerage (Texas: TRELA §1101.002; New York: Real Property Law definition of broker; California: corporation licensed through broker officers)
Term	Texas 2 years; New York 2 years; California licenses are issued for a 4-year period
Texas renewal	Notice about 90 days before expiry; designated broker must hold an active individual Texas broker license in good standing; Franchise Tax Account Status issued within 21 days of the application; proof of ownership or of errors and omissions insurance; proof of managing authority
California corporation	Licensed through a designated broker/officer (RE 201); officer renewal with RE 207 or eLicensing; a currently licensed individual broker need not re-submit CE to renew the officer license
New York	Representative broker holds the license on behalf of the brokerage; business names approved in writing by the Division of Licensing Services before filing; renewal opens 3 months before expiry
If the designated person changes	Texas: Change of Designated Broker amendment; California: Corporation Change Application (RE 204A) signed by the outgoing and incoming designated officer, in the same package, or the corporation license is cancelled

The state examples are from the Texas Real Estate Commission, New York Department of State and California Department of Real Estate pages listed under sources, read on 14 October 2026. Texas requires proof of errors and omissions insurance only when the designated broker owns less than 10% of the entity; the minimum limit is stated on the TREC page. Other states have their own firm licensing rules; check the commission of the state in which the firm operates.

Who is responsible?

The entity's designated broker (Texas) or designated officer (California) is the person who can actually complete the renewal, because the entity license depends on their individual license. Texas lists the designated broker's own active status as the first renewal requirement; California states that a currently licensed individual broker does not have to provide evidence of 45 hours of continuing education to renew a corporation officer license, but a person licensed only as a corporation officer must. In New York the representative broker holds the license on behalf of the brokerage. The firm's compliance or office manager should hold the date as well, since the whole office depends on it.

If the deadline passes

Texas states that if the business entity license expires, late renewal fees apply and all sales agents sponsored by the broker license become inactive; an entity renewed on inactive status must file an amendment to return to active status. California states that if the resignation of the former designated officer and the application for the new one are not received together, the license of the corporation, any branch offices, DBAs, and employed salespersons and broker-associates will be cancelled; on the death or incapacity of a sole designated officer the corporation can continue only if the notice and change application are filed before midnight of the tenth business day after the event. New York allows no grace period for working without a license.

Documents Texas asks for at every renewal

TREC requires a Franchise Tax Account Status page from the Texas Comptroller issued within 21 days before the application (a series LLC also attaches the Certificate of Filing from the Secretary of State); proof of the designated broker's ownership if the broker owns 10% or more and the ownership has changed since the last renewal, or proof of errors and omissions insurance if the broker owns less than 10%; and proof of the designated broker's current status as an officer, manager or general partner. Acceptable proof of ownership includes stock certificates, IRS Schedules K-1, C or G, corporate resolutions or meeting minutes with the articles or bylaws, an LLC operating agreement, or a partnership agreement. Because the tax status page must be fresh, request it only once the renewal notice has arrived.

Tracking it with ExpirySuite

Add the firm as its own asset and record the entity license expiry date printed on the license, plus the issuing state (2 years in Texas and New York, 4 years in California).
Reminders arrive 60, 30, 14, 7 and 1 day before the expiry date and on the day itself, inside the roughly 90-day window in which Texas and California send their notices and New York opens renewal.
Link the designated broker's or designated officer's own license as a separate record, because the entity cannot be renewed if that individual license is not active.
For Texas, add a note to order the Franchise Tax Account Status page within 21 days before filing and to collect ownership or insurance proof.
Assign a responsible person (for example the designated broker and the office manager) so the reminder reaches more than one person.
If a date passes, managers get overdue reminders 3, 7 and 14 days later.
Ask the designated broker to upload the renewed entity license through a secure upload link, valid for 14 days; no account is needed.

Frequently asked questions

Does our brokerage company need its own license if the broker is licensed?: In Texas yes: all business entities engaged in brokerage, including partnerships, must be licensed, and an entity that receives compensation on behalf of a license holder must be licensed as a broker (TRELA §1101.002 and §1101.355). In New York the firm, LLC or corporation is itself the broker under the Real Property Law, with the representative broker holding the license on its behalf. In California a corporation is licensed as a broker through its broker officers.
How often is the entity license renewed?: Texas: every two years, after the notice sent about 90 days before expiry. New York: the broker license term is two years. California: the DRE states that licenses are issued for a four-year period and renews the corporation officer license with form RE 207 or through eLicensing.
What happens when the designated broker leaves?: Texas: file a Change of Designated Broker amendment through the REALM Portal with proof of managing authority and ownership or insurance. California: submit a Corporation Change Application (RE 204A) signed by both the resigning and the incoming designated officer, together with a Corporation License Application (RE 201) if the newcomer has no officer license for the corporation; if the documents are not received together, the corporation's license and its branches, DBAs and employed licensees are cancelled.
Does the entity need continuing education?: The education belongs to the individual. California states that a currently licensed individual broker need not provide evidence of 45 hours of CE to renew a corporation officer license, while a person licensed only as a corporation officer must. Texas ties the entity renewal to the designated broker's active individual license, which itself needs 18 hours of CE per two-year period.

Sources

Last checked: Oct 14, 2026 · This page summarises official sources for general information and is not legal advice. Check the linked sources for current rules and fees.

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