Learn the exact steps, requirements, and costs to open your own real estate brokerage in California, plus a faster alternative with our white-label DBA program.
Starting a real estate brokerage in California can feel overwhelming, but with a clear roadmap, it is completely achievable. This guide walks you through every step from licensing to launch while focusing on action.
Step 1: Confirm You Meet Broker Licensing Requirements
Before registering your brokerage, you or your designated officer must hold an active California broker license. Here is what that requires:
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Experience: At least two years full-time (or equivalent part-time) salesperson experience within the last five years.
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Education: Completion of eight statutory courses. The required broker courses are:
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Real Estate Practice
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Legal Aspects of Real Estate
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Real Estate Finance
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Real Estate Appraisal
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Real Estate Economics or Accounting
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Three elective courses chosen from: Real Estate Principles, Real Estate Property Management, Escrows, Real Estate Office Administration, Mortgage Loan Brokering and Lending, Advanced Legal Aspects of Real Estate, Advanced Real Estate Finance, Advanced Real Estate Appraisal, Business Law, General Accounting, or a related college-level course approved by the DRE.
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Exam: Pass the California Broker Exam.
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Application: Submit the broker license application to the California Department of Real Estate (DRE).
Action Step: If you are not yet licensed, expect 12 to 24 months to complete this process. If you already hold your broker license, move forward to Step 2.
Step 2: Set Up Your Legal Structure and Paperwork
California law requires brokerages to be corporations. LLCs cannot hold a brokerage license. You will need to:
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File Articles of Incorporation with the California Secretary of State.
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Obtain a Certificate of Status that is recently issued.
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Apply for a federal EIN.
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Open a business bank account.
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Speak with a CPA about electing S-Corp status for tax purposes.
Many founders use incorporation services like ZenBusiness, Incfile, or LegalZoom to simplify this step.
Step 3: Register Your Brokerage with the California DRE
After forming your corporation, you must apply for a corporate broker license with the DRE.
Required forms:
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RE 201 – Corporation License Application
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RE 212 – Corporation Background Statement (if applicable)
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RE 237 – Live Scan Fingerprint Request (if the broker-officer has not been active recently)
Optional forms:
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RE 203 – Branch Office Application (if opening branch offices)
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RE 282 – Fictitious Business Name Application (if using a DBA or brand name)
Mail your forms and required fees to the DRE. Processing usually takes several weeks.
Step 4: Insurance, Compliance, and Systems
To protect your business and remain compliant, you will need:
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Errors and Omissions Insurance to protect against liability claims
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Trust accounts if you plan to handle client funds directly
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Compliance checklists to ensure every file meets DRE standards
Step 5: Join CAR and Your Local REALTOR Association and MLS
To access the forms, resources, and MLS you need, your brokerage must join the California Association of Realtors (CAR) and your local board.
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The broker of record must join first.
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Once the broker is a member, agents can join under your brokerage.
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Membership also includes the National Association of Realtors.
Step 6: Branding and Positioning Your Brokerage
Your brokerage brand matters.
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Pick a business name that fits your vision.
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If using a DBA, file locally and with the DRE (Form RE 282).
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Decide whether to designate a virtual or physical office. California requires a main office address. If opening branches, file RE 203.
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Secure your website domain and start building your brand presence.
Step 7: Website and Digital Presence
A strong online presence is essential.
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DIY builders like Squarespace or Wix can get you online quickly.
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Real estate platforms like Luxury Presence or Real Geeks provide IDX integration, lead capture, and stronger branding.
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Claim your Google Business Profile and set up social media accounts on Instagram, LinkedIn, and YouTube.
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Claim your profiles on Zillow, Realtor.com, and Trulia.
Step 8: Core Systems to Launch With
Set up essential systems from day one:
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CRM options: Follow Up Boss, kvCORE, or LionDesk
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Transaction management tools: Skyslope, Dotloop, or Brokermint
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Communication: Google Workspace for email and Grasshopper or RingCentral for phones
Step 9: Recruiting and Growth Strategy
Your agents are the foundation of your brokerage.
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Recruit your first three to five agents carefully.
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Create an onboarding packet with training, policies, and logins.
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Have every agent sign an Independent Contractor Agreement. Even though California agents are exempt from AB5, this written agreement is essential.
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Differentiate your brokerage through your value proposition: higher splits, technology, culture, or flexibility.
Step 10: Costs and Timeline (Estimates)
California brokerages generally require several thousand dollars to launch. Industry research suggests that average startup costs range between $10,000 and $200,000 depending on whether you open a physical office, the technology stack you choose, and how much you invest in marketing and staffing.
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Timelines vary:
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If already licensed, you can expect to launch in 3 to 6 months.
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If not yet licensed, plan on 1 to 2 years.
Step 11: First-Year Focus and Long-Term Scaling
In your first year focus on:
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Recruiting your first producing agents
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Establishing compliance and transaction workflows
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Growing visibility through SEO, Google Business Profile, and social media
As you grow, consider branch locations, team-based models, or exit strategies such as a sale or merger.
Final Thoughts
Starting a brokerage in California is challenging but rewarding. With systems in place, compliance handled, and agent support at the center, you can build a thriving company.
Ready to Skip the Hassle?
If you would rather launch your brokerage quickly and compliantly under a white-label setup, we can help. Our brokerage offers a DBA white-label service with CAR membership, MLS access, branded systems, and full support.
Click here to start your brokerage under our license today
Note: All costs, timelines, and requirements in this guide are estimates only and subject to change. Always confirm with the California Department of Real Estate, your local Realtor association, and professional advisors before making decisions.
