Opening Your Own NJ Brokerage: Office, Trust Account and Licensing Basics

The short answer: To open your own brokerage in New Jersey, you need a NJ broker license and a brokerage license in one of two forms: you as a sole proprietor (an "employing broker"), or a business entity licensed as a broker with you as its broker of record (N.J.A.C. 11:5-1.3, 3.12, as amended). Then you must maintain a supervised main office in New Jersey (N.J.A.C. 11:5-4.4) and a separate trust account for other people's money (N.J.A.C. 11:5-5.1). Finally, you take responsibility for every licensee working under you.

This page starts where the broker license ends. If you're still working toward the license itself, start with how to become a broker in NJ.

Sole proprietor or business entity: which license do you need?

The Commission's amended definitions draw the line (N.J.A.C. 11:5-1.3):

• An employing broker is a natural person licensed as a NJ broker who conducts brokerage activity as a sole proprietor.
• A broker of record is the licensed broker designated as "in charge of and responsible for all real estate brokerage activity" of a business entity licensed as a NJ broker.

The Licensing Bureau processes separate applications for a sole proprietor broker, a business entity and the broker of record of that entity (N.J.A.C. 11:5-3.12). A company can hold a broker license, but a person must always be on the hook for it.

Fees are from the NJREC fee page. Check it for current amounts before you apply. An entity setup involves both the entity license and the broker of record license. Forming the LLC or corporation itself is a separate state business filing, so talk it through with an attorney and an accountant.

What does the main office have to look like?

Every resident broker who isn't a broker-salesperson must keep a main office in New Jersey, open to the public during usual business hours (N.J.A.C. 11:5-4.4(a)). A few rules shape where it can be:

• Home offices must be independent of the living quarters, with a separate exterior entrance plainly visible from the street (11:5-4.4(b)).
• Not in an agent's home. The office can't be in the dwelling of a salesperson or referral agent who works for you (11:5-4.4(c)).
• Exterior sign. A sole proprietor displays their name and "Licensed Real Estate Broker" outside the office. An entity displays its business name, the broker of record's name and the same words (N.J.A.C. 11:5-6.1(a)).

Every ad must carry the firm's regular business name, the name on record with the Commission (N.J.A.C. 11:5-6.1(b)). A branch office needs its own license and must be supervised by a broker-salesperson employed by your firm. A change of branch supervisor must be reported to the Commission within 48 hours (N.J.A.C. 11:5-4.5, as amended).

What does "full-time supervision" mean?

The office and everyone working from it must be directly supervised, full time, by you or by a licensed broker-salesperson. That person doesn't have to be at the desk every minute, but staff must be able to reach them at all times. When not away on business, the supervisor must be physically present at least five days a week during usual business hours and can't hold another job during that time (N.J.A.C. 11:5-4.4(a)). The Commission considered changing this wording in its 2026 rulemaking and kept the existing text (adoption notice).

Responsibility follows the people, not the building. As sole proprietor or broker of record, you're held responsible for violations by anyone licensed through your firm, wherever they happen. Every transaction is under your "ultimate supervision" (N.J.A.C. 11:5-4.2(a), 11:5-4.4(d)).

How do you set up the trust account?

Before you take a deposit, open a special account, separate from your business and personal accounts, at an authorized financial institution in New Jersey (N.J.A.C. 11:5-5.1(a)). Then:

1. File the affidavit. Your license application or renewal includes an affidavit or certification naming each institution and account number. Report any new account or change immediately (11:5-5.1(b)).
2. Deposit promptly. "Promptly" means within five business days of receiving the money (11:5-5.1(e)). Mixing client money with your own is commingling, a ground for discipline (N.J.S.A. 45:15-17(o)).
3. Keep the records. Ledgers and records of all trust funds must be kept for at least six years. Withdrawals go by bank transfer or by check to a named payee, never to cash (N.J.A.C. 11:5-5.4).
4. Authorize every disbursement. No client funds may be paid out without your express authorization and knowledge (11:5-4.2(a)3).

How deposits move through a deal is covered in our earnest money guide.

What do you owe the agents who join you?

Before an agent does any brokerage activity, you and the agent must sign a written agreement with the terms of the relationship, including pay (N.J.A.C. 11:5-4.1(a), as amended). Agents may accept compensation for brokerage work only from their employing broker (N.J.S.A. 45:15-17(m)), so all of their pay comes through you. Transaction files stay at the broker's office when an agent leaves (N.J.A.C. 11:5-5.5(c)).

That's the other side of the conversation in our guide to questions to ask a NJ brokerage. If you ever wind the firm down, the closing duties are in what happens if your broker closes.

The path to your own firm starts with the salesperson license. Business Elementary's 75-hour pre-licensing course is the first step.

Sources

• NJ Real Estate Commission rule adoption R.2026 d.020, 58 N.J.R. 803 (Jan 20, 2026): N.J.A.C. 11:5-1.3 definitions, 3.12 license applications, 4.1(a) and (c) written agreements and deposit of compensation, 4.5 branch offices, 5.5(c) files; comment response retaining 11:5-4.4(a): https://www.nj.gov/dobi/proposed/aa260120njac11_5.pdf
• NJREC, Real Estate License Fees (read Nov 4, 2026): https://www.nj.gov/dobi/division_rec/licensing/recfees.htm
• N.J.A.C. 11:5-4.4, main office and supervision (Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-4-4
• N.J.A.C. 11:5-4.2, broker responsibility (Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-4-2
• N.J.A.C. 11:5-5.1, trust accounts (Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-5-1
• N.J.A.C. 11:5-5.4, records of funds of others (Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-5-4
• N.J.A.C. 11:5-6.1(a)-(b), office sign and business name (Cornell LII): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-1
• N.J.S.A. 45:15-17(m) and (o) (Justia, 2025 statutes): https://law.justia.com/codes/new-jersey/title-45/section-45-15-17/

Last reviewed: November 4, 2026