Real Estate Agent Permit Requirements in Los Angeles, CA

1. EIN (Employer Identification Number)

   Required if you operate as an LLC, corporation, or have employees. Free from the IRS. Even sole proprietors may benefit from obtaining an EIN to keep business and personal finances separate.

   Official government source

   Free·Immediate (online application)

   Free

   Immediate (online application)

1. California Department of Real Estate — Salesperson License

   California requires real estate salesperson applicants to complete 135 hours of pre-licensing education (three 45-hour courses), pass the California Real Estate Salesperson Exam (administered by the DRE), and apply to the California Department of Real Estate (DRE). Must work under a licensed California broker.

   Official government source

   $100 exam fee + $350 original license fee + $49 fingerprinting + pre-licensing courses (three 45-hour courses; cost varies)·4–16 weeks

   $100 exam fee + $350 original license fee + $49 fingerprinting + pre-licensing courses (three 45-hour courses; cost varies)

   4–16 weeks

2. Errors & Omissions (E&O) Insurance

   Most real estate brokerages require agents to carry Errors & Omissions (E&O) insurance, which protects against claims of negligent acts or omissions in real estate transactions. Some states mandate it; most brokerages require it. Coverage typically starts at $100,000 per occurrence.

   Official government source

   $300–$800/year·1–5 business days

   $300–$800/year

   1–5 business days

1. City of Los Angeles — Business Tax Registration (if operating a brokerage)

   Real estate professionals working in the City of Los Angeles generally must register with the Office of Finance for a Business Tax Registration Certificate (BTRC). This includes individual salespersons compensated as independent contractors (1099) — only W-2 employees are exempt from the business tax. Brokerages likewise need a BTRC. Registration is free; the annual tax is gross-receipts-based, with $0 owed under the $100,000 Small Business Exemption if the renewal is filed on time.

   Official government source

   $0 to register; annual tax gross-receipts-based ($0 if worldwide gross receipts are $100,000 or less and renewal filed on time)·1–3 weeks

   $0 to register; annual tax gross-receipts-based ($0 if worldwide gross receipts are $100,000 or less and renewal filed on time)

   1–3 weeks

Official Sources

• City of Los Angeles Office of Finance
• California Department of Real Estate — Salesperson

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