If you’re here, you’re probably wondering if it’s time to stop giving away a chunk of your commission and start running your business on your terms. Maybe you’ve been closing deals for years and you’re tired of quotas, fees, and office meetings. Or maybe you’re just starting out and want to understand what your career path could look like, with more autonomy, more income, and more control.
Whatever the reason, this guide walks you through exactly what “working independently” really means in real estate, legally, financially, and practically. We’ll answer the big questions agents ask us all the time:
- Can you legally work without a broker?
- How long do you have to be licensed before going solo?
- Is becoming a broker really worth it, or is there another way?
“Independent Agent” vs. “Licensed Broker”: What’s the Difference?
Helpful Resource -> What Does A Real Estate Broker Do?
This is where most confusion starts. Many agents use the term “independent” to mean they’re free to run their business how they want, but legally, that independence has limits.
If you’re a licensed sales associate (which is most agents), you must be affiliated with a licensed broker to practice real estate. You can’t legally operate on your own, open a firm, or close deals without that broker’s oversight.
A licensed broker, on the other hand, can work completely independently. They can manage their own transactions, start their own brokerage, and supervise other agents. That’s real legal independence, but it comes with more responsibility, compliance oversight, and risk.
So, when agents ask if they can “go independent,” what they often mean is: “Can I control my business without all the micromanagement and fees?” And that’s where flat-fee brokerages come in.
Why You Can’t Work Solo Right After Getting Licensed
Even if you’re ready to branch out on day one, real estate licensing law won’t let you. New agents are required to work under a licensed broker, usually for 2–3 years, before they can qualify to become a broker themselves.
This period isn’t just red tape. It’s designed to help agents:
- Gain transaction experience
- Learn compliance processes
- Build a client base
- Understand contracts and disclosures
That said, not every agent uses this time the same way. Some focus on long-term independence from day one, using it as a training ground before eventually breaking out on their own.
Flat-Fee Brokerages: The Legal Loophole for Autonomy
If you’re not interested in becoming a broker, but still want freedom, flat-fee brokerages are the shortcut. They give you operational independence while still satisfying legal requirements.
At Realty Hub, for example, you stay legally compliant under our brokerage, but you:
- Keep 100% of your commission
- Skip office politics, quotas, and desk fees
- Set your own hours and clients
- Avoid unnecessary association dues
It’s the best of both worlds, freedom with structure. And for many agents, it’s the smarter, lower-risk path to autonomy.
How Long Do You Have to Work Under a Broker?
State-by-State Requirements (Examples: FL, GA, AL, CA)
Each state sets its own criteria, but here’s a snapshot:
- Florida: Must have 24 months of active real estate experience within the last 5 years before applying for a broker license.
- Georgia: Requires 3 years of active licensure as a salesperson.
- Alabama: Requires 24 months of active licensure.
- California: Offers an alternative route, skip the experience if you hold a 4-year real estate degree.
The bottom line? In most states, you’ll need at least two years of active work under a broker before you can go fully solo.
Education vs. Experience: Paths to a Broker License
Becoming a broker usually requires both:
- Completion of state-approved broker coursework (ranging from 45 to 180 hours)
- Passing a state-administered broker exam
- Verifiable experience handling real estate transactions
Some states, like California, allow education to substitute for work experience. But in most cases, it’s a combination of time in the field and formal education.
Can a Real Estate Agent Work Without a Broker?
What Happens If You Operate Illegally
Trying to “go solo” without a broker license is a legal no-go. If you close deals without being sponsored by a brokerage, you’re not just breaking rules, you’re putting your license at risk.
State commissions can:
- Fine you
- Suspend or revoke your license
- Deny future broker applications
This is why even experienced agents partner with brokerages, they provide the legal foundation you must have to transact.
Case Study: Referral-Only Agents Who Work Without Traditional Brokers
Let’s say you want to keep your license active, but don’t want to manage clients, marketing, or full transactions. Realty Hub’s referral-only option is built for exactly that.
You can:
- Maintain your license
- Refer deals to other agents
- Earn passive income with zero transaction workload
And contrary to industry myth, “referral-only” is not a legally limited status, it’s a label created by the Realtor Association. You’re still licensed. You’re still legal. You just choose when and how to engage.
How to Become a Real Estate Broker (Step-by-Step Guide)
If you’re committed to full legal independence and want to open your own brokerage, here’s the roadmap. Becoming a broker isn’t just about passing a test, it’s about preparing to take on the full weight of running a business. This means building both legal qualifications and operational infrastructure.
Step 1: Fulfill Experience Requirements
Most states require real estate agents to have 2–3 years of full-time experience before applying for a broker license. This typically translates to:
- 24 months of active licensure within the last 5 years (Florida and Alabama)
- 3 years of active status (Georgia)
- Or, in states like California, substitute experience with a 4-year degree in real estate for faster eligibility.
Make sure your transaction volume is properly logged and that you’ve been practicing actively, not just holding a license.
Step 2: Complete Education & Pass the Exam
Next, you’ll need to enroll in state-approved broker pre-licensing education. This ranges by state:
- Florida: 72-hour pre-licensing broker course
- Georgia: 60 hours
- Alabama: 60 hours
Once completed, you must pass the state’s broker licensing exam, which covers:
- Brokerage management
- Contracts and real estate law
- Ethics and fair housing
- Financial analysis and trust account management
The exam is more complex than the sales associate exam, especially around compliance and supervisory obligations.
Step 3: Form Your LLC and Register with the State
Once you’re licensed, you’ll need to establish a legal business entity. Most solo brokers choose:
- LLC for liability protection and tax flexibility
- S-Corp for tax optimization once income is high enough
You’ll also need to:
- Register your brokerage with the state’s Division of Real Estate
- Open business bank accounts
- Set up your EIN with the IRS
Without this legal foundation, you cannot operate as a true independent business.
Step 4: Set Up Insurance, Escrow, and Compliance Systems
Now comes the infrastructure. As a broker, you are responsible for everything a traditional firm provides:
- E&O insurance (usually $1,000–$3,000/year minimum)
- Escrow or trust accounts, depending on state law
- Document compliance systems to meet state audit requirements
- Transaction coordination software
- Training manuals and office policies (required if you sponsor agents)
This is where many solo brokers feel overwhelmed. You’re no longer just selling homes, you’re running a full-fledged firm.
Hidden Costs of Going Fully Solo (and How to Avoid Them)
Licensing, E&O, Assistants, Compliance, Escrow
Many agents underestimate how much it costs to start a brokerage or go solo. Expenses often include:
- Errors & omissions insurance (often thousands annually)
- Incorporating and maintaining an LLC or S-Corp
- Legal compliance systems and audit protection
- Accounting software and back-office tools
- Hiring virtual assistants or transaction coordinators
- Escrow account setup and liability
The list adds up quickly, and it’s why so many agents miscalculate their profit margin when leaving a traditional brokerage.
Why Some Agents Come Back to Big Brokerages
Here’s what we’ve heard from agents who tried going solo and returned:
- “I didn’t expect compliance to take so much time.”
- “It was harder than I thought to find good help.”
- “I spent more time setting up tech and admin systems than selling homes.”
The dream of freedom became a reality of admin work, legal stress, and costly support staff. That’s why some agents return to the safety net of a brokerage, though not always the right one.
Tips & Tricks for Thriving as an Independent Agent
Clients choose agents, not firms. That means your branding, testimonials, and digital presence matter more than your brokerage name. Start by:
- Claiming your Google Business Profile
- Building out your reviews
- Creating consistent Instagram or Facebook content tied to your niche or market
Choose the Right CRM and Automate Your Marketing
Without a team or corporate infrastructure, your tech stack does the heavy lifting. We recommend:
- A CRM with automated follow-ups
- Email campaigns for past clients and leads
- Transaction checklists and digital signature tools
A lean, automated system saves you time and keeps leads warm without constant manual follow-up.
Join Networks, Don’t Isolate: Online Groups + Virtual Teams
Independence doesn’t mean working in a vacuum. Join:
- Private agent Facebook groups
- Local real estate associations (if you opt in)
- Slack or Discord communities for independent agents
- Real estate masterminds or accountability pods
Collaboration can still exist, even without an office.
Balance Hustle and Health: Avoiding Burnout as a Solo Agent
Solo agents often report burnout from juggling every aspect of the business. Protect your mental bandwidth by:
- Outsourcing admin tasks to virtual assistants
- Hiring a transaction coordinator
- Setting weekly non-negotiable time blocks for family, rest, or workouts
- Creating SOPs to reduce decision fatigue
Freedom means nothing if it drains you. Build your business around sustainability, not just sales.
FAQ: Real Estate Independence Questions Answered
How much does it cost to start your own brokerage?
Answer: Expect $5,000–$10,000/year in costs once you add licensing, E&O, legal compliance, tech systems, and staff.
What’s a typical referral commission split?
Answer: Often 20–30%, but with flat-fee brokerages like Realty Hub, you keep everything after the referral fee, no extra brokerage cuts.
Is “Referral Only” a real legal designation?
Answer: No. It’s a term made up by the association. You can be fully licensed and close deals or referrals as you choose.
Can I avoid the Realtor association and still be active?
Answer: Yes. At Realty Hub, association membership is optional, not required to keep your license active or close deals.
What’s the easiest path to broker status?
Answer: Some states allow you to skip experience requirements with a 4-year real estate degree. Others require 2–3 years of full-time activity under a broker.
Should You Go Independent?
If you’re aiming to build your own brand, sponsor other agents, or create a team under your leadership, becoming a broker may be the right move. You’ll have full control, but also full responsibility. For agents who want to run a real business, manage compliance, and grow a firm, the broker license is a long-term asset.
When Flat-Fee Brokerages Are the Better Move
But if you’re like most agents, focused on freedom, not hiring or managing others, a flat-fee brokerage model is the smarter path. You get the autonomy to run your business your way without the liability, setup costs, or time investment that comes with opening your own firm.
The Smart Alternative: Work Independently Without Being a Broker
Becoming a broker isn’t the only way to achieve independence. You can operate with autonomy right now by joining a flat-fee, 100% commission brokerage. That’s how we built Realty Hub, around the idea that agents deserve freedom without franchise cuts, office politics, or compliance stress.
At Realty Hub, agents pay just $100 per year and $100 per transaction. You close deals your way, set your schedule, and keep your full commission, without managing escrow accounts or running a firm.
This model fits agents who value lean operations, low overhead, and hands-off compliance.
Avoid Overhead Without Sacrificing Legitimacy
Running your own brokerage means taking on hidden costs: E&O insurance, accounting systems, legal compliance, tech infrastructure, and more. For many agents, that cost outweighs the benefit of full control.
With Realty Hub, you stay compliant under our brokerage umbrella while maintaining control of:
- Your branding
- Your CRM and marketing systems
- Your commission
- Your work style
You don’t have to build the backend of a firm, we’ve already done it.
Real-Life Scenarios: Referral Agents, Part-Time Agents, and Out-of-State Deals
We’ve structured Realty Hub to support all kinds of agents:
- Referral agents who want to earn passive income without handling transactions
- Part-time agents with other jobs or family commitments who still want control
- Investors or out-of-state license holders who close deals occasionally and don’t want overhead
You don’t need a broker’s license to build a business on your terms. You need a platform that respects your independence while backing your license, and that’s exactly what Realty Hub offers.
Build Your Business Without Giving Away Your Paycheck
If you’ve been asking, “Can I really work independently as a real estate agent?”, this is your moment to act. Whether you’re part-time, full-time, or referral-only, independence is closer than you think.
At Realty Hub, we designed our model for agents who want:
- To keep every dollar of their commission
- To avoid paying for tools, systems, and office space they don’t use
- To operate legally and confidently without the overhead of opening a brokerage
With Realty Hub you close a deal. You keep your commission. You skip the franchise meetings. You get help only when you need it, and silence when you don’t.
That’s independence. That’s control. That’s Realty Hub.
👉 Join Realty Hub now and run your business the way it was meant to be run.