Best Of

@MichaelAngell_CFFP Thanks so much - very helpful!

@Alyssa11529071

I can only speak in general educational terms and cannot offer specific insurance or legal advice. That being said:

Does having an LLC impact E&O insurance under a brokerage?

Usually, no, but it depends. Most brokerages have E&O insurance that covers you as an individual agent working under their license, even if you have an LLC for tax purposes. That said, some brokerages want your LLC to be registered with them or listed on the policy, so it’s always smart to ask your broker or compliance team to make sure you're covered.

Do you ever use the LLC in signing client documents?

In most cases, no. You’ll sign contracts using your personal name as the agent, since your license is tied to you, not your LLC. So you’d sign as “Your Name, agent with XYZ Realty,” not your LLC name. The LLC is more for how you handle income and taxes, not for client-facing documents.

If not, how does that work for liability coverage?

Liability coverage usually comes through the brokerage’s E&O insurance, which protects you while acting as their agent. The LLC might help protect your business income or separate personal from business finances, but it doesn’t usually shield you personally if something goes wrong in a transaction—that’s what E&O is for.

What have you seen for realtors naming the LLC once under a brokerage?

Most agents go with something simple like their name or initials plus “Realty,” “Properties,” or “Group”—like “Jane Smith Properties LLC.” Just avoid anything that sounds like a brokerage unless you’re opening one, and definitely check with your state and your broker because some places have rules about naming.

Hope that helps,

Michael

Halloween is the perfect time to show off your creative side and connect with your community! Here are 12 fun, spooky, and effective ideas to get your real estate business noticed:

👻 Have fun with it! Halloween is a great excuse to show your personality and keep your business top of mind!

Let us know which idea you might try…