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Become Business Broker Economics
Economics

What it really costs — and what you keep

Business brokerage is a high-margin, low-overhead business: your biggest "cost" is time and lead gen. Here's the startup cost, the monthly spend, and a calculator for your real take-home — including tax.

One-time startup cost estimate — varies by state
LLC formation (state filing fee) — Step 1 of licensing$50–500
EIN (IRS)$0
Local business license / registration$0–150
Domain (Cloudflare, at cost) — Step 0 of lead-gen~$10/yr
Website (self-built with the template)$0
E&O insurance — first month/deposit — guide$70–150
Attorney: adapt your document pack to your state (one-time)$300–1,000
Professional headshot + basic branding$0–300
Solo Broker OS (protocol, data, tools, templates)$97
Typical total to open the doors$500–2,200

The attorney review is the big variable — it converts the template pack into signable, state-compliant documents and is worth every dollar. Real-estate-license states add pre-license education + exam + license fees (typically $500–1,500 and 2–4 months) — check your state.

Monthly running cost itemized estimate — price your own stack
CRM (pipeline), valuation & market data — included in Solo Broker OS$0/mo
Claude Pro (AI copilot for CIMs, outreach, research)$20/mo
BizBuySell listing (1)$60/mo
E&O insurance$70/mo
Business email (Google Workspace)$7/mo
Business phone (VoIP) + e-signature$25/mo
Bookkeeping + tax prep (amortized)$45/mo
Lead gen (organic + referral)$250/mo
Comps data (per-report, as needed)$68/mo
Memberships (IBBA, amortized)$62/mo
Total$607/mo · $7,284/yr
Typical gross margin benchmark
85–95%
Commission has almost no cost of goods.
Typical net margin (solo) benchmark
50–75%
After lead-gen, tools, insurance & memberships — before tax.
Break-even
~1 deal
A minimum fee ($15K) covers two years of lean costs (~$7.3K/yr).

Going full-time? Budget health insurance separately — typically $400–800/mo self-employed in the US. It's a personal cost, not a business one, but it's the biggest line most new solo brokers forget when they leave a salaried job.

Broker income calculatoryour inputs
Net before tax
$0
Est. after-tax take-home$0
Gross commission
$0
Annual costs
$0
Net margin (pre-tax)
0%
After-tax / month
$0

Net = (deals × commission) − (monthly cost × 12); after-tax applies your estimated rate to the pre-tax net. Solo brokers pay self-employment tax (~15.3%) plus income tax — the real rate depends on your entity, deductions and state, so confirm with a CPA. Defaults: 4 deals = the IBBA Market Pulse median (4–6/yr for established brokers) — many new brokers do 0–2 in year one, so model conservatively.