How to Start a Real Estate Business in Ohio: Salesperson and Broker Licensing

If you want to start a real estate business in Ohio, the first thing to settle is your license, not your company name or website. Anyone who lists, sells, or brokers real estate for others in Ohio needs a license from the Ohio Division of Real Estate and Professional Licensing under Ohio Revised Code chapter 4735. This guide covers the Ohio real estate license requirements for salespersons and brokers, and what it takes to set up a brokerage on top of that license.

Informational only: This article is general information, not legal or tax advice. Licensing rules, fees, and deadlines can change. Confirm every figure with the agency named before you act, and talk to a qualified Ohio attorney and a CPA before you form a business or choose a structure.

What You Need Before You Start

Gather these items before you enroll so you do not stall partway through:

• Time for 100 hours of prelicense education at an institution of higher education, split across the required subjects.
• Time to pass the state licensing exam after your coursework.
• The $81 application fee, which includes your first license year.
• A licensed Ohio broker who will supervise you. A salesperson must work under a licensed broker.
• For a broker license: at least two of the last five years licensed, 20 transactions or equivalent, broker-level coursework, and the broker exam.
• For a brokerage: a business entity, a name, a registered agent, a bank account, and a plan for taxes and insurance. These are covered in the brokerage section below.

Step 1: Decide Between Salesperson and Broker

Ohio licenses two levels for this work. A salesperson must work under a licensed broker. A broker holds its own license, can run a brokerage, and can supervise salespersons. Many people start as salespersons because the requirements are shorter and the path is quicker. A broker license is the route if your goal is to own and run the business. Your choice affects everything that follows, so make it before you pay for coursework.

Step 2: Complete 100 Hours of Prelicense Education

Salesperson prelicense education is 100 hours at an institution of higher education, under ORC 4735.09(F), effective September 30, 2025. The hours are divided by subject:

Subject	Required hours
Real estate practice	40
Ohio law and civil rights	40
Appraisal	10
Finance	10
Total	100

Before you enroll, ask the school to show in writing how its course maps to these four subject areas. A course that is short on any one subject can cost you time and money later. Also check that the course is recognized for Ohio licensing, since the Division, not the school, decides whether your education counts.

Step 3: Pass the State Exam

Once your coursework is complete, you must pass the state licensing exam. Ask the Division how to schedule it, what to bring, and whether any retake rules apply. Spend extra time on Ohio law and civil rights, since it is one of the two largest subject blocks in your coursework and it comes up in daily practice.

Step 4: Apply and Pay the $81 Fee

File your salesperson application with the Division and pay the $81 application fee, which includes your first license year. Because you must work under a licensed broker, line up that broker before you apply. Confirm with the Division when the broker affiliation must be recorded, what documents the application requires, and whether anything else must be submitted with it.

Step 5: Complete 20 Hours of Post-License Education

Within 12 months of your license being issued, you must complete 20 hours of post-license education. Put that deadline on your calendar the day the license is issued. Confirm with the Division what happens if the deadline is missed, and do not wait until the last month to enroll in a course.

Broker License Requirements in Ohio

The broker license is governed by ORC 4735.07. To qualify, you need:

• Experience: two of the last five years licensed, plus 20 transactions or equivalent. Confirm with the Division what counts as an equivalent before you count on it.
• Broker-level coursework, including 30 hours each in financial management, human resource management, applied business economics, and business law.
• The broker exam.

This guide does not give a total broker coursework hour count, a broker application fee, or the definition of transaction equivalents. Check all three with the Division before you plan your budget and timeline.

Keep a dated record of every transaction you work on from your first day as a salesperson. You will need that proof when you apply for the broker license, and reconstructing it from memory is slow and error-prone.

Starting a Brokerage

Starting a brokerage means a broker holds the license and supervises the agents who work under it. The brokerage is also a business, so it needs a legal entity and the state paperwork that goes with it. Ohio has no state general business license and no statewide general contractor license, and counties issue no business license. Your local city or village is where most local business rules come from.

Form the Entity

Most brokers form a limited liability company. The Articles of Organization for a Domestic Limited Liability Company (Form 610) cost $99. File online through Ohio Business Central at https://www.ohiobusinesscentral.gov/, or by mail to the Secretary of State.

• Regular processing: 3 to 7 business days from receipt. Online filing through Ohio Business Central is the fastest standard route.
• Expedite Service 1: $100 above the filing fee, processed within 2 business days.
• Expedite Service 2: $200, processed within 1 business day.
• Expedite Service 3: $300, requires in-person delivery, and is processed within 4 hours if received by 1:00 p.m., otherwise by noon the following business day.
• Preclearance review: $50, taking 1 to 2 business days.

Your company name must include the words “limited liability company” or one of the abbreviations “L.L.C.,” “LLC,” “limited,” “ltd.,” or “ltd.” It must also be distinguishable on Secretary of State records from any other LLC, corporation, limited liability partnership, limited partnership, or registered trade name, unless the prior holder gives written consent. You can reserve a name for 180 days for $39. Search the name first at https://businesssearch.ohiosos.gov/.

A corporation is also possible. The Initial Articles of Incorporation for a Domestic For-Profit Corporation (Form 532A) carry the same $99 filing fee. For most small brokerages an LLC is the simpler choice, but the tax and ownership tradeoffs are a question for your attorney and CPA.

Name a Statutory Agent

Ohio calls the registered agent a statutory agent. Every LLC must appoint and maintain one. The agent must be an Ohio resident individual, or an entity with a business address in Ohio. The listed address must be a street address, not a post office box, even one with a street address attached. The Secretary of State will not accept your articles without a written appointment and the agent's written acceptance. Changing an agent, an agent's address, or filing a resignation costs $25. A resignation takes effect 30 days after it is filed.

Register a Trade Name If You Need One

If your brokerage will operate under a name other than its legal name, register that trade name or fictitious name with the Ohio Secretary of State, not the county. Registration on Form 534A costs $39. Renewal costs $25 every five years, and an update or change of registrant name costs $25. Forms are listed at https://www.ohiosos.gov/business/business-filing-forms/.

Understand the State Tax Picture

Ohio has no franchise tax and no LLC annual tax. Ohio LLCs also file no annual report. Your main state tax exposure is the Commercial Activity Tax (CAT), a gross receipts tax of 0.26% on Ohio taxable gross receipts. For tax year 2025 and later, only businesses with more than $6 million of Ohio taxable gross receipts owe the CAT or must register. CAT returns are filed quarterly. Most small brokerages will be under that threshold, but confirm your status with the Ohio Department of Taxation at https://tax.ohio.gov/.

Two more items need checking. First, if any of your revenue comes from taxable sales of goods, you need a vendor's license. The county auditor issues it under state law, and it can be obtained through Ohio Business Gateway. The application fee is $50. Second, cities and villages tax business net profit under their own rates, so check the rate in the municipality where your office sits.

Plan for Workers' Compensation

If you hire employees, Ohio workers' compensation is purchased from the state fund run by the Bureau of Workers' Compensation, not from a private carrier. Confirm your obligation with the BWC before your first hire.

Brokerage or Independent Agent: How the Relationship Works

In Ohio, a salesperson is always licensed under a broker, so an agent who calls themselves independent still works under a broker's license. The real decision is whether you want to be the broker who runs the office, or a licensed salesperson affiliated with someone else's brokerage. The written agreement with your broker should cover supervision, how commissions are paid, and what happens when the relationship ends. How that relationship is classified for tax and employment purposes is a legal question, so have an attorney review the agreement.

Expected Results

Completing these steps can position you to start working with clients under a broker's supervision. The timeline depends on how quickly you finish coursework, pass the exam, and get your application processed, and it may run for several months. Income depends on your market, your effort, and any commission split with your broker. Nothing in this guide promises any particular result.

Common Mistakes to Avoid

• Enrolling without checking the course. A program that does not match the 40, 40, 10, and 10 hour breakdown can leave you short.
• Missing the 12-month post-license deadline. Track it from the day your license is issued.
• Assuming a county or city business license covers you. Ohio has no general state business license, and counties issue no business license.
• Choosing an LLC name without the required words or one that is not distinguishable on Secretary of State records.
• Using a post office box as the registered agent address. A street address in Ohio is required.
• Operating under a trade name you have not registered. Register it with the Secretary of State.
• Expecting an annual report. Ohio LLCs do not file one.
• Forgetting the municipal net profit tax. Your city or village may levy its own rate.
• Confusing a Realtor title with a license. See the section below.

Practical Tips

• Interview brokers before you enroll. Ask how they train new agents, how they handle supervision, and what their split looks like in writing.
• Reserve your name before you spend money on branding. A 180-day reservation costs $39 and gives you time to finish your paperwork.
• Use the Ohio Small Business Development Centers. Their advisors can help you work through a business plan and the startup checklist at https://clients.ohiosbdc.ohio.gov/.
• Keep your records clean from day one. Dated transaction files will save you time when you apply for the broker license.

What “Realtor” Means in Ohio

Realtor is a registered trademark of the National Association of REALTORS, and it is used by members of local and state associations. Holding an Ohio real estate license does not make you a Realtor. Membership in an association is a separate decision with its own dues and rules, and it does not replace the license. If you plan to market yourself as a Realtor, confirm with the association how the term may be used.

When to Talk to a Professional

Talk to a qualified Ohio attorney before you sign a broker agreement, hire your first agent, or pick an entity structure. Talk to a CPA before you decide how to handle CAT filings, municipal net profit tax, and owner compensation. These are the decisions that are expensive to undo.

Official Resources

• Ohio Secretary of State: https://www.ohiosos.gov/
• Ohio Business Central (online filing): https://www.ohiobusinesscentral.gov/
• Ohio Secretary of State business search: https://businesssearch.ohiosos.gov/
• Ohio Department of Taxation: https://tax.ohio.gov/
• Ohio Small Business Development Centers: https://clients.ohiosbdc.ohio.gov/
• Ohio Division of Real Estate and Professional Licensing: search for it on the Ohio state website for current licensing forms, exam information, and fees.

This article is informational only and is not legal or tax advice. Verify all fees, deadlines, and requirements with the agency named before you act, and consult a qualified attorney and CPA for your situation.