Forming a PA, LLC, or PLLC as a Florida Real Estate Associate

Forming a PA, LLC, or PLLC as a Florida Real Estate Associate

Forming a PA, LLC, or PLLC as a Florida Real Estate Associate

As a sales associate or broker associate in Florida, you may operate as an individual or, if you follow the proper steps, as a business entity. Many agents choose to form a Professional Association (PA), Limited Liability Company (LLC), or Professional Limited Liability Company (PLLC) in order to be taxed as a corporation, often electing S-Corp status to reduce self-employment taxes.

Why Agents Choose a PA or LLC

  • Tax Benefits – By electing S-Corp status, you may lower self-employment taxes and gain additional deductions.

  • Professional Structure – Operating under a PA or LLC allows your commissions to be paid directly to your business entity.

  • Compliance with DBPR – Florida law (Section 475.161, Florida Statutes) permits sales associates and broker associates to form these entities, as long as the name of the entity matches your legal name.

    • Example: If your license reads Wade Wilson, your entity must be Wade Wilson, PA, Wade Wilson, LLC, or Wade Wilson, PLLC.

Steps to Form Your Entity

  1. Obtain a Tax ID Number

    • Apply through the IRS for an Employer Identification Number (EIN).

  2. File for S-Corp Election (Optional but Recommended)

    • If you form an LLC, you can elect to be taxed as an S-Corporation by filing IRS Form 2553.

  3. Register Your Entity with the State

    • File your PA or LLC paperwork through the Florida Division of Corporations at www.sunbiz.org

    • Under state rules, you must be the sole officer, director, member, or manager of the entity.

  4. Update Your License with DBPR

    • Complete Form RE 16 to add your entity designation to your license.

    • Submit it through the Florida Department of Business and Professional Regulation (DBPR) at www.myfloridalicense.com

  5. Confirm Approval
    1. Look up your license on the DBPR site to verify the entity designation has been added.
    2. Where your license once read Wade Wilson, it should now read Wade Wilson PA (or LLC, PLLC).

  6. Update Brokerage Records
    1. Notify Dalton Wade to update your records so checks are issued to your new entity name instead of your personal name.

  7. Set Up Banking
    1. Open a bank account in the name of your PA or LLC.Request a debit or credit card for business expenses.


Important Notes

  1. These steps apply only to sales associates and broker associates—not brokers of record for brokerage firms.
  2. Once approved, all commission checks, referrals, and payments must be made payable to your entity.
  3. If anyone questions whether payment can be issued to your PA/LLC, you can direct them to verify your license on the DBPR website.
  4. It is strongly recommended that you consult with a CPA or tax professional experienced in working with REALTORS® before setting up your entity.

Helpful Resource

  1. Florida Realtors®: A Path for Associates to Form a PA, LLC, or PLLC
  2. DBPR Information
  3. Sunbiz – Division of Corporations

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