Looking to help folks looking to purchase new home in CA.

[James Yang]

So the folks are looking into purchasing a new house in California from some builders. Some of these builders have a broker's co-op and offer some commission to buyer's agents. I have a broker's license from awhile ago and renewed it last year but otherwise have never used it.

I'm wondering what's required from my end? From my research it seems I just need to have a valid license. 

E&O Insurance/LLC won't be required as it's immediate family.

DBA seems to be optional. (Any benefit to having this?)

Do I need an EIN? I'm assuming the builders don't issue a 1099.

These builders generally have their own forms and require you to use them.

I'm just unsure what this process really looks like. Just wondering if anyone has been through this.

[Christopher Phillips]

@James Yang

Makes sense.

If you're going to operate as a sole proprietor, you should get E&O. It's not that expensive. You can be sued by any member of the transaction based on what was said or omitted. Not just from your buyer side of the transaction.

If you're only doing one transaction, it's probably not worth getting an EIN.

You can have the check made out directly to your name, you just have to remember to deal with it during tax time.

If you plan on doing more of these and other transactions, then it might be worth getting into a DBA and/or EIN.

I go through this all the time when I sign up with vendors to do BPOs. They always want a W9, E&O, social or EIN.