Already running a Texas brokerage? Stop losing non-Realtor agents to board membership requirements. Texas Broker Sponsor™ acts as your Designated Broker of record for a separate business entity — so you keep your agents and your main brokerage runs untouched.
You are a licensed Texas broker with board membership. You have built a productive team. And then an agent — one of your best — tells you they will not join the board. The board's rules say they must. You have no good answer for them. They leave.
This happens because many Texas boards require agents sponsored under a board-member broker's license to also hold board membership. It is not a TREC requirement — it is a private contractual rule imposed by the board. But it flows downstream to every agent under your license, and you cannot override it within your existing structure.
The agents most likely to leave over this requirement are often your most self-sufficient producers: investor agents, commercial practitioners, referral licensees, and cost-conscious professionals who have calculated that board dues offer them no return.
The solution is a separate LLC — a distinct legal entity with its own TREC broker license — operating under a designated broker who does not carry board membership requirements. Your existing brokerage is completely unaffected. Your non-board agents transfer their TREC sponsorship to the new entity and continue working without interruption.
Your existing brokerage
New entity (DB by TBS™)
We review your current brokerage structure, identify which agents need a non-board option, and confirm the separate entity approach is right for your situation.
Your new LLC is formed with the Texas Secretary of State. We guide you through the TREC Application for Brokers License by Business Entity and all required filings.
Our broker is appointed as Designated Broker of record for the new entity. The TREC Change of Designated Broker filing is completed. Your entity is licensed and active.
Your non-board agents transfer their TREC sponsorship to the new entity. They remain active, compliant, and productive — without a board card.
Our best business relationships are built on mutual benefit. Fees are posted for transparency. Special pricing and accommodations are available by prior arrangement.
Texas-Based Entity
$499 / year
Annual Audit & Compliance Fee
Out-of-State Entity
Contact for Pricing
Standard rates apply for Annual Entity & Compliance Audit. All fees subject to Independent Contractor Agreement terms.
This is a fully compliant TREC arrangement. These requirements are non-negotiable and exist to protect you, your agents, and the designated broker.
Your entity must carry Errors & Omissions insurance of no less than $1,000,000 aggregate. This is a TREC requirement and protects the designated broker, the entity, and all sponsored agents. Need coverage? Our affiliated insurance services can assist.
The designated broker will not handle escrow accounts. All earnest money and trust funds must flow through a licensed title company or real estate attorney. This is a firm requirement.
The new LLC must hold its own active TREC broker license. Required filings include the TXSOS Certificate of Formation, TREC Application for Brokers License by Business Entity, and IRS EIN (Form SS-4).
The designated broker carries legal responsibility for supervision of all sponsored agents. This is an active oversight role — not a passive license holder arrangement.
Important Notice
The Designated Broker will not handle escrow accounts. Business entities must always use licensed attorneys or title companies for escrow and trust funds. This is a firm requirement of this arrangement.
Yes. TREC does not require board membership for a licensed broker or their sponsored agents. The separate entity structure is a fully compliant TREC arrangement used by brokers throughout Texas. The entity holds its own TREC broker license and operates independently.
No. The two entities are legally separate. Your existing brokerage, board membership, MLS access, and agent relationships are completely unaffected. The new entity operates under its own TREC license with its own designated broker.
Typically 30 to 60 days from initial consultation to active TREC license for the new entity. The timeline depends on TXSOS processing times and TREC application review. We guide you through every step.
Annual designated broker service for a Texas-based brokerage entity starts at $499/year with up to 5 agents included. Additional office locations are available at $399/month. Out-of-state entity arrangements are available by prior consultation and custom pricing.
Yes. A TREC-licensed agent sponsored by a licensed Texas broker entity can legally represent buyers and sellers, execute contracts, and earn commissions — regardless of board membership. Board membership is a private contractual requirement, not a state licensing requirement.
If the relationship is dissolved, your entity must appoint a new designated broker within the timeframe required by TREC. We provide advance notice of any changes and assist with transition planning. Your E&O policy is structured to cover the final period of the relationship.
Yes. Agents transferring sponsorship to the new entity will execute a new Independent Contractor Agreement with the entity. This is a standard TREC requirement for any change of sponsoring broker.
From the Broker's Desk
Ron L. Miranda, Designated Broker & Founder of Texas Broker Sponsor™, explains the structural problem behind non-board agent attrition and the compliant solution that has helped brokers across Texas retain their most self-sufficient producers.
Read the full articleThe conversation is confidential and there is no obligation. Call or email to discuss whether this structure makes sense for your brokerage.