Updated over 5 years ago on . Most recent reply
LLC on Independent contractor agreement
I recently got my real estate license and am going through the onboarding process with a brokerage in VA. I went through the trouble of registering a business entity as an LLC, both with the SCC and VREB. I like to keep liabilities separate. I was recently informed that in VA, the independent contractor agreement must be between the licensee and the brokerage. I am told that it cannot be with the business entity.
This one of three LLC's I have (others are not in real estate) and in no other business has this been an issue. The whole point of the LLC is that you function as a business entity and not a person. It's a common LLC owner mistake to sign as an individual. At least that's how I've always been advised. I can see if a given brokerage prefers it's not the case, but not permitted in VA and a state level? That seems wrong.
Is there truth to their statement. Is there something particular in real estate that prohibits ICA's between a brokerage and the LLC business entity of a salesperson?