Section 1450.745  Business Entity for Direct Payment of Compensation

a)         Every sponsored licensee who forms a business entity as set forth in Section 10-20(e) of the Act, for the purpose of receiving the sponsored licensee's compensation, shall submit to the Division copies of the Articles of Incorporation or Organization or authority to conduct or transact business in Illinois issued by the SOS. 

b)         For purposes of this Section, a "business entity" must be owned solely by the licensee or together with the licensee's spouse, but only if the spouse and licensee are both licensed and sponsored by the same sponsoring broker, or the spouse is not also licensed.

c)         A sponsoring broker, regardless of whether they have an employment or independent contractor agreement with a licensee, may pay compensation directly to a business entity formed pursuant to Section 10-20(e) of the Act.

d)         The business entity that receives compensation from a sponsoring broker may not:

1)         Be licensed under the Act;

2)         Perform licensed activities;

3)         Sponsor, employ or associate itself with other licensees; or

4)         Hold itself out to the public, or advertise to the public, under the business entity's legal or assumed name.

e)         The business entity formed pursuant to Section 10-20(e) of the Act, may receive compensation earned by the licensees arising out of activities unrelated to licensed activities.

(Source:  Amended at 49 Ill. Reg. 9512, effective July 7, 2025)