Frequently Asked Legal Questions
: Does the State of Texas require a license to become a business broker?
: The State of Texas has no formal general business brokerage license. However it is recommended that a real estate license is secured because the transfer of a business typically includes a transfer of a lease or the outright sale of a piece of real property and these activities require the broker to have a real estate license in order to collect a commission. There is some argument to be made that in certain instances, a real estate license may not be needed, but the Texas Association of Business Brokers recommends every business broker obtain a real estate license. Additionally, the Texas State Securities Board has a “business brokerage” securities license which is available and is recommended for business brokers who handle the sale or transfer of equity securities.
: How do I obtain the business brokers security license?
: Go to the State Securities Board website at www.ssb.state.tx.us and fill out Form BD for your company and Form U4 for an individual. Links to the Securities Board web site and these forms are provided below.
Texas State Securities Board
Form U4 - Uniform Application for Securities Industry Registration or Transfer
Form BD - Uniform Application for Broker Dealer Registration
: Does TABB provide a form offer to purchase or contract of sale for use by its members?
: At the present time, TABB does not provide such form.
: Are there are any procedures for filing complaints against a TABB member?
: TABB does not have any disciplinary or grievance procedure and therefore does not have a formal complaint process. Consult your attorney or other state agencies for the answer to this question.
: Is there a federal securities license for business broker?
: Consult the Association of Merger and Acquisition Advisors website for information with respect to this issue as it is in the forefront of state, local and national trade association and groups.