South Dakota Codified Laws 36-21A-46.1. Responsible broker, salesperson, or broker associate permitted to form certain business entities–Conditions
A responsible broker may, or a real estate salesperson or broker associate employed by or otherwise associated with a responsible broker may, form a business corporation or limited liability company under the following conditions:
(1) The business corporation or limited liability company does not engage in real estate transactions as a third-party agent or in any other capacity requiring a license under this chapter;
Terms Used In South Dakota Codified Laws 36-21A-46.1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(2) The business corporation or limited liability company does not advertise or otherwise hold itself out as a real estate brokerage company;
(3) The responsible broker is not relieved of any obligation to supervise the employed or associated licensee or any other requirement of this chapter or the rules promulgated pursuant to this chapter;
(4) The employed or associated licensee is not relieved of any personal liability for any licensed activities by interposing the corporate or limited liability form;
(5) The business corporation or limited liability company is owned solely by a broker, a salesperson, or by that licensee and that licensee’s spouse, or by that licensee and other licensees within the same firm as that licensee; and
(6) The business corporation or limited liability company is approved by and registered with the commission. The registration fee for an approved business corporation or limited liability company shall be established by rule promulgated pursuant to chapter 1-26. The fee may not exceed one hundred dollars.
Source: SL 2001, ch 205, § 1; SL 2006, ch 199, § 1; SL 2009, ch 188, § 1; SL 2013, ch 177, § 17.