{"id":5783,"date":"2013-09-04T08:20:20","date_gmt":"2013-09-04T15:20:20","guid":{"rendered":"http:\/\/www.keytlaw.com\/azllclaw\/?p=5783"},"modified":"2013-09-04T08:20:20","modified_gmt":"2013-09-04T15:20:20","slug":"llc-or-pllc","status":"publish","type":"post","link":"https:\/\/www.keytlaw.com\/azllclaw\/2013\/09\/llc-or-pllc\/","title":{"rendered":"Can an Arizona Real Estate Broker Operate through an LLC vs. a PLLC?"},"content":{"rendered":"

Question<\/strong>:\u00a0 I am a licensed Arizona real estate broker.\u00a0 I know that Arizona licensed sales agents must operate through a professional corporation (PC) or professional limited liability company (PLLC).\u00a0 Must I operate my brokerage business in a PLLC or can I do it through a vanilla LLC?\u00a0 Also, if I can use an LLC can I use the LLC I formed that owns two investment rental properties?<\/p>\n

Answer<\/strong>:\u00a0 Arizona does allow a licensed real estate broker to operate the brokerage business through an LLC or a PLLC.\u00a0 See Section 3 of the Entity \/ Employing Broker License Application LI-212<\/a>.\u00a0 You could use your existing LLC.\u00a0 Keep one asset protection concept in mind:\u00a0 If you put all your eggs in one basket and you drop your basket you lose all of your eggs.\u00a0 If you have an operating brokerage LLC that owns other assets like stocks, bonds or investment real estate and a lawsuit arises out of the conduct of the business that turns into a large judgment for money, you lose the brokerage business and all the assets owned by the LLC.\u00a0 If you had put the investment assets in one LLC and operated the brokerage in a different LLC a financial disaster with the brokerage LLC would not cause a loss of the assets in the other LLC.<\/p>\n","protected":false},"excerpt":{"rendered":"

Question:\u00a0 I am a licensed Arizona real estate broker.\u00a0 I know that Arizona licensed sales agents must operate through a professional corporation (PC) or professional limited liability company (PLLC).\u00a0 Must I operate my brokerage business in a PLLC or can I do it through a vanilla LLC?\u00a0 Also, if I can use an LLC can I use the LLC I formed that owns two investment rental properties? Answer:\u00a0 Arizona does allow a licensed real estate broker to operate the brokerage business through an LLC or a PLLC.\u00a0 See Section 3 of the Entity \/ Employing Broker License Application LI-212.\u00a0 You could use your existing LLC.\u00a0 Keep one asset protection concept in mind:\u00a0 If you put all your eggs in one basket and you drop your basket you lose all of your eggs.\u00a0 If you have an operating brokerage LLC that owns other assets like stocks, bonds or investment real estate and a lawsuit arises out of the conduct of the business that turns into a large judgment for money, you lose the brokerage business and all the assets owned by the LLC.\u00a0 If you had put the investment assets in one LLC and operated the brokerage in a different LLC a financial disaster with the brokerage LLC would not cause a loss of the assets in the other LLC.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-5783","post","type-post","status-publish","format-standard","hentry","category-faqs"],"yoast_head":"\nCan an Arizona Real Estate Broker Operate through an LLC vs. a PLLC? - Arizona LLC Law %<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.keytlaw.com\/azllclaw\/2013\/09\/llc-or-pllc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can an Arizona Real Estate Broker Operate through an LLC vs. a PLLC?\" \/>\n<meta property=\"og:description\" content=\"Question:\u00a0 I am a licensed Arizona real estate broker.\u00a0 I know that Arizona licensed sales agents must operate through a professional corporation (PC) or professional limited liability company (PLLC).\u00a0 Must I operate my brokerage business in a PLLC or can I do it through a vanilla LLC?\u00a0 Also, if I can use an LLC can I use the LLC I formed that owns two investment rental properties? Answer:\u00a0 Arizona does allow a licensed real estate broker to operate the brokerage business through an LLC or a PLLC.\u00a0 See Section 3 of the Entity \/ Employing Broker License Application LI-212.\u00a0 You could use your existing LLC.\u00a0 Keep one asset protection concept in mind:\u00a0 If you put all your eggs in one basket and you drop your basket you lose all of your eggs.\u00a0 If you have an operating brokerage LLC that owns other assets like stocks, bonds or investment real estate and a lawsuit arises out of the conduct of the business that turns into a large judgment for money, you lose the brokerage business and all the assets owned by the LLC.\u00a0 If you had put the investment assets in one LLC and operated the brokerage in a different LLC a financial disaster with the brokerage LLC would not cause a loss of the assets in the other LLC.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.keytlaw.com\/azllclaw\/2013\/09\/llc-or-pllc\/\" \/>\n<meta property=\"og:site_name\" content=\"Arizona LLC Law\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/keytlaw\" \/>\n<meta property=\"article:author\" content=\"http:\/\/www.facebook.com\/keytlaw\" \/>\n<meta property=\"article:published_time\" content=\"2013-09-04T15:20:20+00:00\" \/>\n<meta name=\"author\" content=\"Richard Keyt\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Richard Keyt\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/09\\\/llc-or-pllc\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/09\\\/llc-or-pllc\\\/\"},\"author\":{\"name\":\"Richard Keyt\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#\\\/schema\\\/person\\\/9d6c74d30296559f95e238fa25182391\"},\"headline\":\"Can an Arizona Real Estate Broker Operate through an LLC vs. a PLLC?\",\"datePublished\":\"2013-09-04T15:20:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/09\\\/llc-or-pllc\\\/\"},\"wordCount\":230,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#organization\"},\"articleSection\":[\"FAQs\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/09\\\/llc-or-pllc\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/09\\\/llc-or-pllc\\\/\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/09\\\/llc-or-pllc\\\/\",\"name\":\"Can an Arizona Real Estate Broker Operate through an LLC vs. a PLLC? 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