Trenton, NJ – A new Assembly bill clarifies that New Jersey real estate salespersons and broker-salespersons can route commissions through their own limited liability companies without changing their relationship with their employing broker.
Sponsored by Assemblyman Sterley S. Stanley of District 18, the measure updates existing statute to reflect common industry practice for tax and liability planning.
The bill also directs the New Jersey Real Estate Commission to set up a registration process for entities that receive commissions on behalf of licensed salespersons and broker-salespersons.
The legislation amends R.S.45:15-16 to state that, notwithstanding other laws or rules, a salesperson or broker-salesperson may form an LLC—or another permitted entity—to receive “commission or other valuable consideration” from their contracting broker, and may then accept payment from that entity without affecting the broker affiliation defined in their written agreement.
It retains the core requirement that commissions originate from the employing or contracting broker, ensuring compliance with licensing and supervision rules while allowing agents to use business entities for payment administration.
The bill further instructs the Real Estate Commission to create a formal registration process for these entities, adding an administrative mechanism to track which LLCs or other entities are receiving compensation tied to licensed activity.
Key Points
- Clarifies that licensed agents may receive commissions via their own LLCs or other entities without altering broker affiliations.
- Keeps commissions originating from the employing or contracting broker to maintain compliance with supervision rules.
- Requires the New Jersey Real Estate Commission to establish an entity registration process; effective immediately.
What the change means for brokerages and agents
For brokerages, the measure preserves current supervisory structures and payment flows while reducing ambiguity over whether agents’ personal entities can receive disbursements. For agents, the clarification supports common entity use for tax, benefits, or liability reasons, subject to existing broker agreements and state oversight.
Implementation details
The act takes effect immediately and tasks the Real Estate Commission with creating the registration pathway for LLCs and other entities that will receive commissions, aligning compensation practices with statutory language without altering licensing standards or brokerage relationships.