Q: To move my personal NY real estate license into my LLC, does my LLC have to be incorporated within the state of NY?
I am a licensed real estate salesperson in New York State. I am forming an LLC for various reasons, and would like my broker to pay my commissions to my LLC, which is allowed in the state of New York. My two primary questions are:
1. Does my LLC have to be incorporated within the state of New York, or will any valid LLC incorporation suffice (such as Delaware, for example)?
2. What is the procedure for transferring my salespersons license into my LLC with the NY Department of State Licensing Services such that it is legal for my sponsoring broker to pay my commissions to my LLC?
A:
Article 12-A of the New York Real Property Law, Section 441-b, provides:
"In case a person licensed individually as a real estate broker thereafter becomes an officer of a corporation or a member or manager of a limited liability company or a member of a co-partnership an application shall be made in behalf of such corporation, limited liability company or co- partnership for a broker’s license for him as its representative for the remainder of the then current license term, provided that the license and pocket card previously issued to the licensee in his individual capacity shall have been returned to the department whereupon the department shall cause a properly signed endorsement to be made without charge on the face of such license and pocket card as to such change of license status and return the license and pocket card to the licensee."
Whether to incorporate in New York or another state is a complicated legal and tax determination that cannot be made without inquiring into the specifics of your business plan. Be aware that wherever you incorporate, you must register your corporation in New York to be able to do business within the State of New York.
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