Yes. A salesperson, including a salesperson licensed with a real estate referral company (commonly referred to as ‘referral agent’), or broker-salesperson may form a limited liability company (LLC) or other entity and register it with the Real Estate Commission to receive commission income or other valuable economic consideration. Such registered entity may receive a commission or other valuable consideration from a broker.

Yes. You must have an ownership interest (e.g., be a member, partner, or shareholder) in the entity you wish to register.

No. The establishment of an entity is a voluntary option for all eligible licensees. It is not mandatory. A broker may still pay an individual salesperson or broker-salesperson directly. However, to be paid through an entity, the entity must be registered with the Real Estate Commission.

 No. You are only allowed to register one entity at any time.

No. Each registered entity can be registered by only one salesperson or broker-salesperson.

You may register a foreign entity (i.e., an entity formed outside of New Jersey), but it must be:

• Registered to do business in New Jersey, and
• In good standing with its home state and New Jersey Department of the Treasury.

You’ll need to submit:

• The entity's full legal name
• A Standing Certificate (dated within 30 days) from the New Jersey Department of the Treasury
• A Certificate of Formation (for New Jersey formed entities) or a Certificate of Authority (for entities formed in a jurisdiction other than New Jersey)
• Credit card information for payment of the required registration fee of $50

An approved entity registration automatically remains active with the renewal of your real estate license. However, it will expire if:

• Your license is revoked.
• Your license lapses and is not reinstated in time.
• You request to terminate the registration.
• If you later reinstate your license, you must re-register the entity before it can receive any commission or payment.

You must notify the Real Estate Commission within 30 days if there are material changes, such as:

• You no longer own or are associated with the entity.
• The entity merges or dissolves.
• The entity falls out of good standing.
• For foreign entities, if its New Jersey authority is revoked.
  

Yes. The registration requires payment of a $50 fee.

No. A Broker of Record is not eligible to register an entity for compensation payments.

Yes. The Broker of Record is notified via email.

No. If your license is renewed, your entity registration remains in place.

No. All applications must go through the approval process. Following application submission and review by the Real Estate Commission, you will receive an email notifying you of the status: approval, a request for additional documentation, or denial. The entity is considered registered only after you have received an email confirming approval.    

No, an entity can only be registered by a single licensee and only that licensee can use it for the purpose of receiving commission income into the entity’s account.

Your entity registration approval is associated with your real estate license and will still be valid for your new broker to pay commissions to, however, you will need to provide your new broker with your registration approval letter that was emailed to you.