If you want to operate as a real estate agent in Texas, you might be asking if you need a broker or not. The quick response is no. Without a broker’s affiliation, it is against the law to work as a real estate agent in Texas. However, there are a variety of brokerage arrangements accessible to agents, so it’s crucial to be aware of your alternatives before starting a real estate career. How Do Filing Instruments Work?
Let’s first define a filing instrument before delving into the many kinds of brokerage arrangements. A filing instrument in Texas is a document submitted to the county clerk’s office in order to create a corporate company. This includes things like doing business as (DBA) names and limited liability organizations (LLCs). Which is preferable, an LLC or a DBA?
It’s crucial to comprehend the distinctions between an LLC and a DBA before deciding which to use. A DBA is merely a name that a business uses, whereas an LLC is a legal structure that offers liability protection for its owners. The majority of the time, an LLC is preferable than a DBA because it offers more personal asset protection. The distinction between an LLC and a DBA is explained here.
As was already established, the primary distinction between an LLC and a DBA is that an LLC shields its owners from liability, but a DBA does not. Additionally, registering a DBA simply involves completing papers with the county clerk’s office, whereas incorporating an LLC necessitates filing paperwork with the state.
In conclusion, you must be connected to a broker if you want to act as a real estate agent in Texas. However, there are a variety of brokerage arrangements accessible, so it’s critical to pick the one that most closely matches your requirements. It’s also critical to comprehend the distinctions between an LLC and a DBA, as well as the prerequisites for submitting a DBA in Texas. You can position yourself for a lucrative career in real estate by completing your homework and being aware of your possibilities.