Agent LLC - Ohio

Procedures for establishing Agent LLC, brokerage record-keeping and verification policies

Law allows the commission to be paid to a corporation or LLC in which the agent is an officer or has an ownership interest.

(Ohio Revised Code Section 4735.20)

Broker must verify agent’s status in LLC and keep a record of the verification for 3 years along with the following information:

The name of the licensee who earned the commission, fee or other compensation;

       The amount paid; and

       The name of the entity to which it was paid

Examples of verification would be:

      Articles of incorporation listing the agent as an officer;

      Stock certificate demonstrating an ownership interest;

      Copy of the partnership or association agreement;

      Copy of the articles of organization for an LLC

      W-9 Form

      Direct Deposit Authorization form bank account info

Ask agent for entity’s authorization to do business in the state.

Ask the agent to sign a statement that they:

      Are an officer, stockholder, etc. or;

      A legal entity is authorized to do business in the state

      The entity is properly registered & in good standing;

      They will notify the broker of any information changes (i.e., the agent no longer        has an ownership interest, the entity is not in good standing, etc.)