Home » Increase Knowledge » Broker Education Programs » Setting up Your Company

To understand the steps of setting up a new real estate office in Arizona, you must:

  1. Identify anticipated cash flow needed to open an office; start-up investment dollar amount
  2. Define your vision and mission statement for your company, such as
    I will plan, budget, and set up a company that sells residential real estate in Surprise, Arizona.

  3. Determine if you want your firm to be a sole proprietorship or have agents under the brokerage
  4. Download the Entity/Employer Broker Name Reservation Request (Form LI-213) from the Arizona Department of Real Estate (ADRE); note: allow approximately 7 days for processing
  5. Reserve your company name with the Arizona Corporation Commission; ACC will hold it up to 120 days
  6. Identify the best legal entity (ask your CPA about Corporation, LLC, or Partnership), Professional – Corporation (PC)/ Limited Liability Company (PLLC) Application (LI-231) may apply; (instructions)
  7. File your paperwork with the ACC
  8. Complete Entity/Employing Broker License Application (LI-212); note: takes approximately 24-48 hours
  9. Apply for an Employer ID Number (EIN) from the IRS; caution: never use your social security number
  10. Identify business accounts you want/need; tip: talk with your bank representative
  11. Find and attend three (3) Broker Management Clinic courses; tip: consider taking while waiting 7-days for the ADRE response to your LI-213
  12. Determine if your company will have a logo and if so, who will design it
  13. Determine if your company will have a website
  14. Research and reserve your website URL
  15. Determine if your company will have a presence on social media; e.g. Facebook, Instagram, LinkedIn
  16. Choose which local association will be your primary association
  17. Set up an Internet Data Exchange (IDX) on your website by making arrangements with your MLS

Resources

Arizona Real Estate Law Book (order form)
Arizona Real Estate Law Book (PDF version)
Arizona Real Estate: A Professional’s Guide to Law and Practice (ordering methods)
Arizona REALTORS® Legal Hotline access process
Broker Dashboard/Tools – RPR
Choose Your Business Structure – SBA
Starting a Brokerage: What To Do – REALTOR®Mag (March 2017)
Find a Broker Management Clinic near you – ADRE
Trust Account Requirements – ADRE
Trust Account Basics – ADRE

Best Practice Tip: Talk to your CPA and/or banker before you do anything.