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Become Business Broker Licensing
Licensing · plain English

What do you actually need to start?

Straight answer: no US state lets you skip everything — but it's simpler than it sounds. It comes down to 3 steps. Do Step 1 everywhere, check your state in Step 2, and glance at Step 3 for each deal.

1

Set up your business

Everyone does this — an LLC, a free EIN, and usually a local business license.

Always · every state
2

Check your state's rule

Most states need no broker license. 16 states want a real-estate license.

Pick it below
3

Check each deal

Real estate or company shares inside a deal can add one extra rule.

Per deal
Step 1Every broker needs this — everywhere
1
Set up your business

Form an LLC (this protects your personal money) and get a free EIN from the IRS. You need these to open a business bank account and get paid.

2
Get your local business license

Most cities and counties require a local business license or tax registration to operate — even when the state asks for nothing. Check your city's website; it's usually quick and cheap.

3
Use a written agreement on every deal

A signed engagement + commission agreement before you start work. This is how you make sure you get paid and stay protected.

4
Carry E&O insurance

Errors & Omissions insurance protects you if a client says you made a mistake. It's not legally required everywhere, but every serious broker carries it.

Step 3Two things that can add a rule to a specific deal
If

The deal includes real estate or a lease

Then

You need a real-estate license — in every US state — for that part of the deal. Many brokers simply partner with a licensed real-estate agent instead of getting their own.

If

You're selling the company's shares (a stock sale), not its assets

Then

This can count as selling a 'security,' which adds rules. Most small-business sales are asset sales, which are simpler. A federal 'M&A Broker' exemption may cover you — confirm you qualify.

Sources & method
  • Business Brokerage Press — State Licensing (businessbrokeragepress.com)
  • American Business Brokers Association — states requiring a real-estate license
  • State real-estate commissions & securities departments

This is a plain-English guide, not legal advice. Rules differ by deal (asset vs share sale, real property) and change over time — a few "license" states only require it when a lease or property is involved. Always confirm with your state's real-estate commission / securities regulator or an attorney before you operate.