Types of Real Estate Businesses
As a real estate professional, you can buy, sell, broker, and rent various types of properties. It’s up to you, which real estate business model you choose for yourself.
- Rental business model
- Residential properties
- Commercial properties
- Online property listing
- Property management services
- Resorts and vacation homes
- Income properties purchased for renting or leasing
Regardless of the type of properties and business model you choose, the best way to get started is to register your business as a legal entity.
A single application for federal & state filings
Real Estate Startup Essentials You Need
Starting a real estate business isn’t for the faint of heart. Do you have what it takes to start, build, and grow a profitable business in the real estate industry?
If you are ready for all the hard work and persistence, starting a real estate business can give you the seven-figure income of your dreams.
Here are a few real estate business essentials you need to get started:
Create a Business Plan
If you want to outperform an average real estate agent, you need to think like a business owner, which requires planning.
- Identify the nature of your business. Buy and sell? Or, rent?
- Conduct market research to find out the cost of buying, selling, and renting residential and commercial properties.
- Arrange business financing through communities such as the US Small Business Administration (SBA).
- Study what other real estate companies are doing.
- Create a marketing and sales plan to find prospects and nurture leads.
- Build long-term customer relationships.
Fulfill Real Estate Licensing Requirements
To start a real estate LLC, you need to acquire a real estate license.
The cost, eligibility, and timeline of getting your license vary from state to state so consult with local authorities to understand the licensing requirements.
- Take pre-licensing courses.
- Clear your state licensing examination.
- File a real estate licensing application.
- Acquire your license.
Find a Real Estate Brokerage to Gain Experience
You have got your license. Great!
However, that might not mean you can start selling properties right away.
Most states require you to work with a real estate broker for two-to-three years as an agent before you can set up your own business.
- Choose to work with a national franchise like Keller Williams Realty.
- Apply for work at local real estate brokerages/agencies in your area.
- Join a virtual brokerage.
Form a Real Estate LLC or Corporation
Starting a real estate business comes with huge risks, which is why it’s important to form a legal entity that provides personal liability protection.
Most real estate professionals either incorporate or form an LLC to start their businesses to get:
- Personal Liability Protection
- Tax Benefits
- Credible Legal Structure
- Business Bank Account
- Easy Capital Investment
While incorporating is a more complicated process, it is easier to form a real estate LLC. LLCs offer minimal compliance and greater control over business decisions, which makes them one of the best entity types for real estate companies.
Fill out one, simplified application and our experts will take care of the paperwork and filing process for you.
How to Form a Real Estate LLC to Start Your Business
If you want to take the plunge and start your own real estate company instead of working for others, there is a lot to consider and do.
Let us walk you through the steps you need to follow to establish a company, fulfill legal requirements, find clients, and make real estate sales.
Here is the step-by-step process to form a real estate LLC:
Are you ready to start your entrepreneurial journey in the real estate industry?
Then, what are you waiting for? Complete your state and federal filings online with our simplified application and leave the rest to us
Start your LLC easily online.
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Frequently Asked Questions
What is an example of a tax ID number?
A federal Tax ID Number is an identification number used by the Internal Revenue Service (IRS) to administer tax laws. This number is issued either by the IRS or Social Security Administration (SSA). A business Tax ID number is required on tax return forms.
Learn MoreHow do I get an EIN application?
An Employer Identification Number is a nine-digit number that identifies your business. It works much the same way your social security number does. If your company has employees, is a corporation or partnership, has a Keogh Plan or fits one of several other situations, it must have its own EIN.
Learn MoreHow many EIN numbers can I have?
As a business owner, you probably know your company needs an EIN (or Tax ID Number) issued by the IRS for tax purposes. But what if you own multiple businesses or operate different divisions of the same entity?
Learn MoreWhat is the purpose of a tax ID number?
Your business is going to need to file income taxes. The Internal Revenue Service uses Tax Identification Numbers to distinguish between individuals, business, and nonprofit organizations, but business tax ID numbers should be distinct from your personal federal tax ID number.
Learn MoreWhat does it mean to have a tax ID number?
For the IRS to conduct its business, it must have an easy way to identify each individual and business. To do this, they require each individual and business to have a tax ID number.
Learn MoreHow does an SSN differ from a tax ID?
A social security number (SSN) is a tax code used by an individual, while a tax ID is a nine-digit tax code for a business entity. For a business entity, a tax ID is usually called an EIN.
Learn MoreWhat is a DBA?
If you’ve ever considered working for yourself, or starting your own business, you may have wondered: what is a DBA? Is a fictitious business name the same as a DBA? What are the benefits of a DBA to my business and myself?
Learn MoreCan a DBA be filed for all business types?
Each type of business entity has clear advantages and disadvantages. Can a DBA be filed for all business types? In most cases, yes; but understanding what a DBA is and what it’s limitations are will help you decide if it’s worth
Learn MoreHow many DBA names can I register?
DBA application filing is a process overseen by state DBA laws and local government, protecting the public from nefarious business owners. DBA is an abbreviation for “doing business as,” and is also referred to as a fictitious name or trade name.
Learn MoreDo I need a DBA?
If you’ve ever considered freelancing, or starting your own business, you should take a few moments to answer this very important question: Do I need a DBA? Not every small business owner needs to pursue DBA application filing, but
Learn MoreAre any words prohibited in a DBA name?
DBA is an acronym that stands for “doing business as.” You may be wondering “do I need a DBA?” If you intend to do business using a name other than your legal business name, you need a DBA. DBAs are common for sole proprietors or partnerships that do not want to use the owners’ legal names to do business.
Learn MoreDBA vs. EIN
If you’re starting a business, there are more then a few abbreviations you’ll need to remember. Filing a DBA application, or applying for an EIN, are two common steps for new business owners. However, they are not the same thing, and as a business owner you should know the difference.
Learn MoreWhat is an LLC?
A limited liability company, commonly referred to as an LLC, combines the taxation benefits of a partnership with the limited liability of a corporation. Instead of partners, LLC business owners are called members, and there can be several, or a single member.
Learn MoreWhat are the benefits to filing for an EIN as an LLC?
A limited liability corporation is one in which the members aren’t personally responsible for any company liabilities or debt. Limited liabilities have the protections of a corporation but the flexibility of a partnership. If your business is listed as a limited liability corporation, you can benefit further by applying for an Employer Identification Number.
Learn MoreWhat’s the difference between an LLC and a corporation?
The fine print that separates a limited liability company (LLC) from a corporation can be overwhelming for new business owners or entrepreneurs. While the minutia of these details might be best suited for a legal advisor or accountant, the broad differences are fairly easy to understand, and they might be enough to help you make a judgment
Learn MoreWhat happens if I apply for the wrong LLC?
Limited Liability Companies (LLC) are popular business structures because they offer personal liability protection for members and don’t have all the formalities that corporations do. LLCs also enjoy pass-through taxation, which means the company doesn’t pay federal income taxes; instead,
Learn MoreWhat legal documents do I need to start an LLC?
For entrepreneurs thinking about starting their own business, forming an LLC is an ideal option, as such an entity provides the owners protection from lawsuits, business debts and other business indiscretions. However, in order to obtain that protection, there are a number of documents that the business owner or owners must file with the state government prior to conducting business.
Learn MoreWhat are the differences between a partnership and a Limited Liability Company?
A Limited Liability Company is a legal entity all its own, while a partnership is owned by two or more people who share legal responsibility of the business entity. In a partnership, the business does not possess a legal identity outside of the business owners. A Limited Liability Company offers more flexibility in terms of operations and personal asset protection.
Learn MoreWhat is a C-Corporation?
A C-Corporation is just anther way of saying corporation. It means the same thing. Corporations are incorporated business entities that file Articles of Incorporation with the Secretary of State or a similar government agency.
Learn MoreCan a C-Corp have multiple owners?
There are certain C-Corp requirements to meet whether you want to start a corporation with one shareholder or dozens. It is certainly possible to apply for a C-Corporation EIN with multiple owners, and when forming a C-Corp in this manner, there are a few points to keep in mind.
Learn MoreWhy is a C-Corp taxed differently than an LLC or S-Corp?
Unlike other business structures, C-Corp taxation is significant in that corporations are taxable entities. Corporations are taxed like an individual and contribute according to corporate income, and then again on shareholder tax returns. This is commonly called ‘double taxation’.
Learn MoreWhat is an S-Corp?
S-Corporations, sometimes called S-Corps, can be useful ways for business owners to avoid what’s called “double taxation”, while also protecting shareholder assets from personal liability. It’s a mix of advantages drawn from other types of business entities; and it isn’t nearly as complicated or time consuming as you might think to establish.
Learn MoreHow do I file to become an S-Corporation?
Before we dive into how to file to become an S-corporation, let’s take a look at what an S-corporation is, exactly, and why you may want to establish this type of business entity for your company. S-corporations are similar to partnerships, or sole proprietorships, at least in terms of how the company will affect you financially.
Learn MoreWhat is a disqualified S-Corporation?
There’s No Such Thing as a Disqualified S Corporation. Luckily, S corporation disqualification is more of an urban legend than fact. In 2010, Congress attempted to pass a measure that would have disqualified some S corporations, primarily small businesses, from using S corp tax structures when filing.
Learn MoreForming a Real Estate LLC? Let Us Help You Get Started
GovDocFiling’s business formation experts understand what it takes to form a company and know which mistakes to avoid.
Let us handle the complicated paperwork and filing processes for you while you focus on other important aspects of starting a real estate business.
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Choose Your Business Entity Type to Get Started
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Select an Entity Type
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