Home Buying in 85301>Question Details

Nthompson1, Both Buyer and Seller in 85301

Do I need a real estate license to form a llc for buying and selling properties in Phoenix AZ?

Asked by Nthompson1, 85301 Mon Mar 7, 2011

Help the community by answering this question:


No you are not required to have a real estate license to form an LLC for the purpose of buying and selling homes. The purpose of the LLC would be best answered by your accountant and attorney. There are both legal and tax reasons to have an LLC.

You need a real estate license if you are planning on representing either buyers or sellers in the purchase or sale of real estate. It may be in your best interest to work with a real estate agent who is familiar with buying and selling homes (i.e. flipping homes) or if you are savvy at finding great deals you can wholesale your properties to other investors/ buyers w/o a license as long as you are principal or active member of the LLC who holds title.
Web Reference: http://www.jameswehner.com
0 votes Thank Flag Link Tue Mar 8, 2011
You can buy, hold and sell properties in an LLC for yourself. When you start to deal with other parties and acting as a Real Estate licensee then you need a license. If you have a licensed person do the selling for you etc then you would not need to be licensed.

Example, you can go out as an individual (or LLC) and buy properties all day long. As an individual you can be a FSBO with your own properties and not be licensed. As an individual you can hire a licensed person to act for you and be completely legal as well.

When you start to assist others you then cross over quickly into needing a license.

I'm not exactly sure what you want to do? Are you more interested in the buy and sell or being a Realtor?

I think I confused myself tonight! HA

Arizona Homes for Sale by a Guy from Iowa

Hopefully others will contribute and help you out as well.
Web Reference: http://www.McVinua.com
3 votes Thank Flag Link Mon Mar 7, 2011
DAH!!!!! Sorry Doug, (I called you Nick) , I guess I haven't had enough coffee this morning.
1 vote Thank Flag Link Tue Mar 8, 2011
I am interesting in buyin a home and flipping homes. Do I need to have LLC
0 votes Thank Flag Link Wed Jul 31, 2013
When buying property wholesale, do I need a llc period?
0 votes Thank Flag Link Fri Nov 23, 2012
No, a real estate license is not required.
If you are borrowing , you lender will most likely not make a loan to the LLC. They want you on the hook, but you may be able to transfer the property into LLC after the fact.

You can find LLC formation forms at
0 votes Thank Flag Link Sat Jul 7, 2012
I have made millions selling realestate and consider my self to be one of the best you can also legaly assist realtors and brokers selling realestate as long as the price you are asking is above the price they are selling the realestate for what i mean is this if a realtor is selling a property at 1000 for example you could ask a buyer to bid up on the property at 1200 in this way your are not acually selling a property but getting a finders fee this is another lope hole
0 votes Thank Flag Link Fri Jul 6, 2012
Hi Carlton, my name is William(Bill), I just registered my LLC company to do real estate wholesaling, and like Hector; I can use all the help I can get from you "Grand Master!!"...... I have a question, I live in St. Lucie County, FL. and I have no Idea if I need a County Lic. to be a wholesaler/investor and everyone I ask cant give a straight answer! I would appreciate your assistance on this matter if you can.
Thank you very much.
Be Blessed,
Flag Mon Mar 10, 2014
AWESOME!...I 'm just starting in this business and I can use all the help I can get!

Thanks Carl!
Flag Mon Mar 10, 2014
you dont have to have a license to form a llc or sell realestate there is a loop hole a round not having a realestate licence the seller must sign a contract asking you to assist them with the private sell of there home as long as this is added to the contract you can sell in any state with out a license this is a loop hole many dont know about
0 votes Thank Flag Link Fri Jul 6, 2012
hey carlton, my name is Hector, I find it interesting the way you foun the llc loophole. is there anyway that you can point me in the right direction to be able to sell private real estate through an llc and with the added contract? thank you in advance.
Flag Fri Jul 12, 2013
Let's clarify. An LLC is an entity that can act as a person and buy, hold title and sell property just like an individual. LLCs are used to hold title for investors renting out property. It provides (if done correctly) isolation of personal assets from that of the LLC should you be sued as the landlord. LLCs may have tax advantages for the owners as well. This website has some good information http://www.incorporate.com/real_estate_faqs.html

LLCs are formed and blessed by the State to conduct business. To Form an LLC see http://www.azcc.gov/divisions/corporations/filings/forms/index.asp

The Real Estate License requirement come into play when you are helping buy or sell property which you do not personally own (ie. your name is not on title or you are not a member of the LLC ).

Hope this helps.
0 votes Thank Flag Link Tue Mar 8, 2011
Hello There,

No you don't, However Nick from Gibert did a great job explaining and giving examples.
If, you have other question regarding LLC and Licenses in the state of Arizona please, contact
a real estate attorney.

Phyllis JC Anderson, GRI
Liberty One Realty
Web Reference: http://www.YourAzCastle.com
0 votes Thank Flag Link Tue Mar 8, 2011
No you do not need a real estate license to form an LLC. Anyone can create & form one. You also don't need a license to buy or sell those properties that you "own". Good luck!
0 votes Thank Flag Link Mon Mar 7, 2011
Do your research first at the Arizona Department of Real Estate.

Next, consult with an attorney.

Next, consult with a CPA.
0 votes Thank Flag Link Mon Mar 7, 2011
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