Section 17-512 - Formation of professional service corporation or limited liability company by salespersons and associate brokers.
§ 17-512. Formation of professional service corporation or limited liability company by salespersons and associate brokers.
(a) In general.- With the consent of a licensed real estate broker, one or more licensed real estate salespersons and licensed associate real estate brokers who are affiliated with the licensed real estate broker may:
(1) organize and wholly own a professional service corporation under the Maryland Professional Service Corporation Act; or
(2) form a limited liability company under the Maryland Limited Liability Company Act.
(b) Composition of corporation or company.- A professional service corporation may be organized and owned or a limited liability company may be formed under this section by any number and any combination of licensed real estate salespersons and licensed associate real estate brokers. However, each shareholder in the corporation or member of the limited liability company shall be either a licensed real estate salesperson or a licensed associate real estate broker.
(c) Payment of commissions to corporation or company.- A licensed real estate salesperson or a licensed associate real estate broker who is a shareholder of a professional service corporation or a member of a limited liability company may direct that any commission due the salesperson or associate broker be paid to the corporation or limited liability company.
[An. Code 1957, art. 56A, § 4-512; 1989, ch. 3, § 1; 1994, ch. 3, § 13; 2005, ch. 377.]