What is required for an entity to operate as a brokerage?

An entity that wishes to operate as a brokerage must have a valid and active entity license. This licensing ensures that the brokerage complies with state regulations and is legally authorized to conduct real estate transactions. An unexpired entity license signifies that the brokerage has met all necessary requirements, including any educational, financial, or ethical standards set forth by the state.

While other aspects, such as having a certain number of agents or holding public liability insurance, can be important considerations for running a successful brokerage, they are not universally mandated requirements for operational legality. Additionally, state certification for brokers is necessary, but it pertains to the individual brokers rather than the brokerage as an entity. Therefore, valid licensure is the foundation for any brokerage's legal operation in the real estate industry.