The New Broker: Steps to Preparing for Licensing

Briefcase Decide on Name and Create Business

  • Forming your company is necessary for you to open bank accounts, enter into contracts, hire employees, and obtain business licenses/permits
  • You may want to discuss with a CPA or attorney what the best business structure will be for you
  • You should draft articles of incorporation/organization (this is often done with an attorney or legal partner)
  • You will want to verify the name is available and can be used in your state

Briefcase Register with Secretary of State

  • Register your business with the IRS to obtain a Federal Employee Identification Number (EIN)
  • Register within the Home State that your company is located in
  • In order to do business in multiple states, you will need to file for “foreign authority” outside your primary formation state

Briefcase Ensure Individual Requirements are Met

  • MLO licensing requires compliance with pre-licensing education and testing requirements, as well as the submission of an MU4 (Individual) application in NMLS
  • Many states require a company to assign a licensed MLO to serve as a company control person (also known as the Qualifying Individual).
Posted in