Where to get a business license(flipping houses business) in Austin, Texas?
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3 Responses to “Where to get a business license(flipping houses business) in Austin, Texas?”
July 1st, 2008 at 1:57 pm
They may not be able to do it without a Real Estate License, and you need to check with the Real Estate Commission first to see how many houses they can legally sell a year without a license.
In my state, if you sell more than 3 houses per year, you need a Real Estate BROKERS license, which means you have to complete 90 classroom hours and pass a state exam, plus background check, etc.
Every state has their own limitation in this regard…that is why you need to check….but they all have one. A violation is usually a misdemeanor. You can’t say, “I keep buying ourselves houses, never living in them, and selling them”…other agents pick up on this quickly, and those are the ones that usually turn people in.
If you are doing any structural changes, you may need to be a licensed contractor…and that varies from state to state….I have seen some that it is only an application and a fee, and another that required you to pass an exam. You need to check with code enforcement to see what they require.
I would actually recommend talking with other experienced “flippers” before they start…they can let them know of anything that they may need to be concerned with so they don’t get suprised by the obvious later.
July 3rd, 2008 at 5:55 am
There is not a license for flipping houses.
If you are buying houses for your own account and selling houses that you or your company own you do not need a real estate license. If you are doing some of the construction work, like plumbing, electrical and such then you might need those.
A CPA can help you sit up books and accounts so that you pay appropriate taxes and such.
Go to City hall for occupancy permits and dba’s.
July 5th, 2008 at 3:51 pm
You don’t need a real estate license in Texas to flip homes.
They can buy and sell all they want. However, if they plan on buying it under a company name, then they’re going to run into a problem especially being a new company. Banks are going to want one of them to be a guarantor.
After they’ve figured out what type of business they want to run, (Corporation, LLC, partnership etc), then they can go to the main county courthouse that they will be working in. (Travis County or Williamson or Hays are around here) or go to all three and they’ll have some paperwork for them to fill out. Although one can go drop the paperwork off, it’s just easier and less hassle if all three go in together.
If they are incorporating it’ll cost around $400 in each county and it must go through the Secretary of State as well.
If they are just doing a partnership and would like to have a company name, then it only costs somewhere around $20 or so.
As always a CPA will have the best advice on what to do for their business organization.
By the way, I’d love to help them find some homes. ; )
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