Question: I am thinking of setting up my own brokerage, but I don’t know where to start. I already have my managing broker license. What should I do next?

Answer: A good starting point will be the Illinois REALTORS® Office/Company Start-up Checklist that is available on our website. The Checklist provides references to the specific sections of the Real Estate License Act and Rules for your convenience. It is a useful resource that runs through many of the aspects that will need to be addressed in setting up your new brokerage. For example, you will need to decide how your business will be organized. Will you be a sole proprietor, a corporation, a limited liability company or a partnership? Will you sponsor other licensees? If so, you will need to have a written independent contractor agreement or employment contract with each licensee (including yourself). If you do sponsor licensees, keep the license law rules in mind as they relate to the managing broker’s duties to supervise those licensees, especially those that have not completed their 45-hours of post license education.

Will you have a physical office or a virtual office? Keep in mind that the physical office must be identified by a sign that the public can see and be in an area that is separate and distinct from other businesses.

License law requires that you maintain a written office policy establishing brokerage procedures on subjects such as agency, fair housing, advertising, training and supervision, risk management and earnest money. (These topics are provided as an example and are not intended to be inclusive or exclusive of other topics.) We provide a Sample Office Policy Manual on our website that is available to download. It will need to be tailored to fit the individual needs of your brokerage.

Of course, we strongly recommend that you consult with your own attorney and your own accountant to review the business plan for your new brokerage.