With tax season upon all Broker/Owners and the requirement of issuing 1099’s, this is a gentle reminder that Massachusetts law requires that your company name contain the word “corporation,” “incorporated,” “company,” “limited” or the abbreviation “corp.,” “inc.,” or “llc.”, or ‘ltd” to signify if your firm is incorporated. It is then assumed that any brokerage WITHOUT an Inc. or LLC or LTD as part of the name is a sole proprietor or partnership that is doing business in a specific city/town and should be issued a 1099.
Please update your record in the MLS system to ensure your proper brokerage status is included in your business name. If you don’t have your company MLS log-in (which is brk. followed by a three digit code), please call the staff and we’d be happy to walk you through that change. If you do have a code by a little unsure about updating the profile, here is a 6-minute how-to video or, as always, give the staff a call at the Board Office 413-442-8049.
While you’re reviewing your corporate status, please also make sure your Brokerage real estate license is up to date with the Board of Registration. All partnerships, corporations and limited liability companies on file with the Board of Registration would appear when searched on the Board of Registration’s Business Search. Sole Proprietors are not listed here. Here are the guidelines for brokerages that need a license:
- SOLE PROPRIETORSHIP: SOLELY OWNED BUSINESSES OPERATE UNDER THE OWNER’S BROKER LICENSE. No additional license is required.
- GENERAL PARTNERSHIPS: MUST SEND TO THE BOARD of REGISTRATION: 1. A CERTIFIED COPY OF THE PARTNERSHIP AGREEMENT 2. A LETTER ASKING FOR AN APPLICATION THAT INCLUDES A MAILING ADDRESS 3. AN APPLICATION FEE OF $52.00 DOLLARS. General Partnerships will then receive bi-annual renewals of their partnership license, in addition to the individual broker license.
- CORPORATIONS\LIMITED LIABILITY CO.\LIMITED PARTNERSHIPS MUST SEND TO THE BOARD of REGISTRATION: 1. A LETTER OF LEGAL EXISTENCE ISSUED BY THE SECRETARY OF STATE (ORIGINAL) OR CERTIFICATE OF FOREIGN CORPORATION FOR CORPORATIONS LOCATED OUTSIDE MASSACHUSETTS. FOR LLC AND LLP NEED LETTER OF GOOD STANDING FROM THE MASSACHUSETTS SECRETARY OF STATE (617-727-9640) 2. A LETTER ASKING FOR AN APPLICATION THAT INCLUDES A MAILING ADDRESS 3. AN APPLICATION FEE OF $52.00 DOLLARS. Corporations and Limited Liability companies will then receive bi-annual renewals of their corporate license, in addition to the individual broker license.
Special Thanks to Barb Hassan of Barb Hassan Realty for the great question that lead to this post.