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Which is most likely required to have a real estate brokerage business?

1) A licensed attorney
2) An attorney-in-fact
3) A licensed real estate salesperson
4) A licensed real estate broker

User Emsr
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1 Answer

5 votes

Final answer:

To run a real estate brokerage business, having a licensed real estate broker is most likely required. Brokers are crucial for legal operation and management of a brokerage. Choosing the right business structure is also important for taxation and liability purposes.

Step-by-step explanation:

The most likely requirement for running a real estate brokerage business is having a licensed real estate broker. Although a licensed attorney can be useful in handling legal matters and an attorney-in-fact can be granted specific powers through a power of attorney, it is the licensed real estate broker who is essential for the operation of a brokerage. Brokers are equipped with the necessary licensure to oversee real estate transactions, manage a team of real estate agents, and ensure compliance with state and federal laws.

When deciding on a business structure, one must consider the type of business, taxation implications, and levels of liability. Common forms include sole proprietorship, partnership, corporation, S corporation, and Limited Liability Company (LLC). The larger the profit, the more taxes for which the business will be responsible.