What type of license must every business entity created, except Sole Proprietorships, possess?

Every business entity created, other than a sole proprietorship, must possess a firm license to operate legally within the real estate industry. A firm license is specifically designed for entities such as corporations, partnerships, and limited liability companies (LLCs) that engage in real estate activities. This license ensures that the entity is compliant with state regulations and allows it to conduct real estate transactions through its designated brokers.

In contrast, personal licenses, corporate licenses, or broker licenses do not fulfill the requirement for business entities. A personal license pertains to individual practitioners, while a corporate license may not be applicable to the context of real estate business operations. A broker license typically refers to the designation given to an individual who manages real estate transactions, which further emphasizes the distinction that a firm license is necessary for all business entities other than sole proprietorships.