Business Broker License Requirements by State: A 2026 Registry of 51 Jurisdictions

State business broker licensing registry

Checked Quarterly, and after each legislative session. Last checked 2026-10-28. Entries are neutral records of public data; each links to its source record.

Business broker license rules split four ways across 51 jurisdictions

Most states do not license business brokers as such. They regulate real estate, and a business sale falls in only when the definition of real estate or of broker reaches it.

Business opportunity: A statutory term for an existing business, its goodwill or an interest in it, offered for sale. Some states define it on its own; others define it only where real property is part of the sale.

We coded each jurisdiction into one of four groups. Six states require a real estate license for any business sale. Two run a separate business broker credential. In 38 jurisdictions the real estate license is needed only when real property or a lease is part of the deal. Five were not coded because the official text could not be opened in this session.

Weighting by Census employer firm counts for 2022, 27.3% of firms sit in the six any-sale states, 4.8% in Illinois and Nevada, 57.3% in property-trigger states and 10.6% in the five uncoded states. State counts sum to 6,604,618 because a firm operating in several states is counted in each; the national count is 6,395,635.

Six states treat any business sale as real estate brokerage

California, Florida, Michigan, Minnesota, South Dakota and Wisconsin put the business itself inside the broker definition.

• California: Bus. & Prof. Code 10131(a) covers selling, buying or negotiating 'real property or a business opportunity', and (b) covers leases on a business opportunity.
• Florida: 475.01(1)(a) covers appraising, auctioning, selling or renting 'business enterprises or business opportunities'.
• Michigan: MCL 339.2501(u) covers 'a business, business opportunity, or the goodwill of an existing business'.
• Minnesota: 82.55, subd. 19(d) covers 'any business opportunity or business, or its good will, inventory, or fixtures'.
• South Dakota: SDCL 36-21A-6(3) uses nearly the same words as Minnesota.
• Wisconsin: 452.01(2)(a) adds 'whether or not the business includes real property'.

In these states an unlicensed intermediary who takes a success fee on a business sale is working inside the real estate license law even if the business owns no land and holds no lease. Together they held 1,800,501 employer firms in 2022, and 27.9% of firms with fewer than 20 employees.

In 38 jurisdictions the lease decides whether a license is needed

Where the statute reaches a business sale only through its real estate, a lease assignment is often enough, because most statutes count a leasehold as real estate.

Twelve property-trigger statutes say so in words: Arizona, Arkansas, Colorado, Hawaii, Idaho, Iowa, Louisiana, Maine, New Hampshire, New York, Utah and Washington name businesses or business opportunities and tie them to real property. Colorado's 12-10-201(6)(a)(IX) names 'a leasehold interest or estate'. Louisiana's R.S. 37:1431(24)(h) names 'leases of real estate'.

The other 26 are silent on businesses, and the trigger comes from the definition of real estate. Thirty-three of 46 coded statutes (71.7%) expressly include leaseholds. Ten say only 'interest in land' or similar, and three carve leases out.

Only Illinois and Nevada run a separate business broker credential

Two states regulate business brokers by name, and they do it differently.

Illinois: the Business Brokers Act of 1995 (815 ILCS 307/10-10) requires anyone in the business of business brokering to register with the Secretary of State. A registration takes effect 30 days after filing and must be renewed annually. The Act's definition of a business (10-5.15) excludes securities transactions and deals where real estate is the dominant element, which fall back under the real estate license law.

Nevada: NRS 645.0075 defines a business broker as someone who sells a business 'as part of an interest or estate in real property', and real estate there includes leaseholds. NRS 645.230(1)(d) requires a real estate license plus a business broker permit; NRS 645.863 requires 24 hours of business brokerage instruction for the permit and 3 hours of related continuing education at renewal.

The 17-state list repeated online does not match the statute text

Several broker-industry websites repeat the same list of 17 states that license business brokers. Checked against the statutes, the list both overstates and understates.

Twelve listed states have statutes that name businesses. Alaska, Oregon and Wyoming have statutes that are silent on businesses and reach a sale only through real estate, the same rule as 22 unlisted jurisdictions. Nebraska's rule comes from a 1988 court decision noted under its statute. Georgia was not coded. Arkansas, Hawaii, Iowa, Louisiana, Maine, New Hampshire, New York and Washington name businesses in their statutes but are not on the list.

Thirteen rows need a lawyer's reading, and why

A row is flagged when the opened text does not settle the question for a typical small business sale.

New York is the hardest case: Real Property Law 440(1) counts a business sale only when the real estate transferred is 'not merely incidental', excludes assigning a lease, and carves out intermediaries registered under securities law. Vermont is the clearest lease carve-out: 26 V.S.A. 2211(a)(3) defines real estate 'excepting leaseholds'.

Stock sales can bring in securities law, with a federal exemption since 2023

When a business is sold by transferring shares, the intermediary may be acting as a securities broker as well.

Section 15(b)(13) of the Securities Exchange Act, codified at 15 U.S.C. 78o(b)(13), exempts M&A brokers from federal broker-dealer registration for the sale of eligible privately held companies. It was enacted 2022-12-29 in Pub. L. 117-328 and took effect 90 days later, on March 29, 2023. A company qualifies if its EBITDA is below $25,000,000 or its gross revenues are below $250,000,000. The exemption is lost if the broker handles the funds or securities exchanged.

The exemption covers federal registration only. State securities rules still apply, and so do the state real estate rules in this registry. Colorado's license law excepts licensed securities broker-dealers, and Illinois and New York exclude securities transactions or securities-registered intermediaries from their business sale provisions.

How to check a business broker's license or registration

The agency to ask depends on which group your state is in.

• Any-sale states (CA, FL, MI, MN, SD, WI): look the broker up on the state real estate license search; the license must be active.
• Illinois: ask the Secretary of State's securities department whether the broker is registered under the Business Brokers Act; the registration record is open for public inspection.
• Nevada: confirm both a real estate license and a business broker permit with the Real Estate Division.
• Property-trigger states: if your sale includes owned property or a lease assignment, check the real estate license; if it does not, a license may not be required at all.
• Stock sales: ask whether the broker relies on the federal M&A broker exemption or is a registered broker-dealer, and check state securities registration.

Our list of questions to ask a broker covers licensing alongside experience and terms, and how brokers get paid explains why a success fee is what brings a sale inside these statutes. For seller notices and tax clearance, which are a separate set of state rules, see bulk sales law by state.

Full registry: 51 jurisdictions with citations

Every coded row links to the official text we opened; archived copies are labelled with their capture date.

Counts and distributions

Download the calculations (CSV)

Key findings

1. California's Business and Professions Code 10131 makes negotiating the sale of a business opportunity real estate broker work, checked 2026-10-28.^[5]
2. Florida's broker definition in 475.01(1)(a) covers business enterprises and business opportunities, checked 2026-10-28.^[10]
3. Wisconsin's 452.01(2)(a) covers selling a business 'whether or not the business includes real property', checked 2026-10-28.^[46]
4. Michigan, Minnesota and South Dakota also place businesses, their goodwill or business opportunities inside the broker definition, checked 2026-10-28.^[21][22][39]
5. Illinois requires every person in the business of business brokering to register with the Secretary of State and renew annually; registration takes effect 30 days after filing.^[13]
6. Nevada requires a business broker to hold a real estate license plus a business broker permit, which takes 24 hours of instruction and 3 hours of business brokerage continuing education at renewal.^[27]
7. In 2026, 33 of 46 coded jurisdictions expressly count a leasehold as real estate, which is 71.7%.^[40][15][33]
8. Idaho excludes a lease from its 'business opportunity' definition, New York excludes lease assignments, and Vermont defines real estate 'excepting leaseholds'.^[12][30][42]
9. Arkansas counts real property sold with all or part of a business's assets or stock as real estate, per its April 2026 license law compilation.^[4]
10. Twenty of 46 coded statutes (43.5%) name businesses or business opportunities; 25 are silent and Nebraska relies on a 1988 court annotation.^[26][14][44]
11. The six any-sale states held 1,800,501 of 6,604,618 state-summed US employer firms in 2022, a 27.3% share.^[50]
12. Thirteen of 51 rows need interpretation, mostly because the statute does not say whether a leasehold counts as real estate.^[2][20][43]
13. The federal M&A broker exemption covers privately held companies with EBITDA below $25,000,000 or gross revenues below $250,000,000.^[51]

Executive summary

• Of 51 jurisdictions, 46 were coded from official statute text opened on 2026-10-28; Alabama, Georgia, Indiana, New Jersey and Tennessee could not be opened in official form and are left uncoded.
• California, Florida, Michigan, Minnesota, South Dakota and Wisconsin write businesses or business opportunities into the real estate broker definition itself, so a real estate license is needed even when no property changes hands.
• Illinois (registration with the Secretary of State) and Nevada (a business broker permit on top of a real estate license) are the only two separate business broker credentials found.
• In 38 jurisdictions the license law reaches a business sale only through its real estate: 33 of the 46 coded statutes expressly count a leasehold as real estate, so a lease assignment can be enough.
• Idaho, New York and Vermont carve leases out, which means a business sold with only a lease assignment may need no license there.
• The six any-sale states hold 27.3% of US employer firms; adding Illinois and Nevada brings the share to 32.1% (Census SUSB 2022, state-summed counts).
• A list of 17 licensing states repeated on several broker websites includes three states whose statutes are silent on businesses (Alaska, Oregon, Wyoming) and leaves out eight states whose statutes name them.
• Sales structured as stock sales can bring in securities law; the federal M&A broker exemption in 15 U.S.C. 78o(b)(13) took effect 90 days after its 2022-12-29 enactment, on March 29, 2023.

Frequently asked questions

Related guides, services and research

• Questions to ask a business broker
• How business brokers get paid
• Bulk Sales Law by State: Tax Clearance Certificates and Notice Deadlines (2026)
• How Many Small Businesses Are There in the US? State Counts by Size (2026)
• Liquor License Transfer Rules by State: Can a Bar or Restaurant License Be Sold? (2026)
• All business sale research

Reproduce this analysis

Every figure comes from the files below. The scripts that pulled and computed them are kept with the report and can be re-run.

Data quality and exclusions

• 51 jurisdictions attempted; 46 coded from official text and 5 (Alabama, Georgia, Indiana, New Jersey, Tennessee) left uncoded because no official copy could be opened.
• 18 of the 46 coded rows rely on an Internet Archive copy of the official page; the oldest is New Hampshire (2023-02-06) and the next oldest West Virginia (2024-11-03).
• 13 rows flagged 'interpretation needed': 9 because leaseholds are not named, 3 because of lease carve-outs or qualifiers (Idaho, New York, Vermont), and 1 (Nebraska) because the rule comes from a court annotation.
• 2 downloads from the New Jersey State Library were discarded: one was a bot-check page, the other an unrelated legislative fact sheet.
• Text extraction: South Dakota pages were UTF-16 and Nevada pages cp1252; both were re-decoded before coding. Texas and Utah pages served application shells, so the legislature's file server and the versioned Utah file were used instead.
• Census file: kept only NAICS total rows for size classes 01 and 33; state counts sum to 6,604,618 firms against a national 6,395,635, a gap of 208,983 firms (3.3%) from multi-state firms.

Methodology

Selection: for each of the 50 states and DC we opened the definitions section of the real estate license law (and, for Illinois, the Business Brokers Act) on the official legislature or agency site. Where the official site blocked or timed out on scripted requests, we used an Internet Archive copy of the same official page and labelled it with its capture date; we did not use proxy readers or bypass bot checks. Law firm and broker summaries were used only to find citations and as pages to compare against, never as evidence for a row.

Coding: a row is 'any business sale' when the broker or real estate definition names businesses, business opportunities or goodwill without requiring real property; 'separate credential' when a business broker registration or permit exists; 'property or lease' when the statute reaches a business sale only through real estate, whether it says so in words or is silent; 'not found' when no official text was opened. Separately we coded whether leaseholds are expressly real estate and whether the statute names businesses at all.

Inclusion and exclusion: exemptions for attorneys, owners, one-off sales, auctioneers and securities dealers are not coded. Agency guidance, rules and case law are not coded except Nebraska's annotation, which appears in the official annotated statute. Five jurisdictions are excluded from category counts and listed in excluded.md with what was tried.

Conflicting sources: where a broker website list disagreed with the statute, the statute governed. Where an archived copy and a live agency compilation both existed, we used the newer one and noted its date.

Derived metrics: firm shares weight each jurisdiction by 2022 employer firm counts (all industries, all sizes) from the Census Statistics of U.S. Businesses state file, the latest release (file dated 2025-04-10). Shares use the sum of state counts as the denominator. Every formula is in derived_metrics.csv and every script in scripts/.

Limitations: statute text is a starting point; agencies and courts may read it more broadly or narrowly. Several copies are archived snapshots from 2023 to 2026, so amendments after the capture date would be missed. Last updated 2026-10-28. Owners comparing brokers can use the broker match form; how the site works is described at how this website works.

This report presents published data with its limitations. It is not legal, financial or investment advice.

Sources, ranked by quality

Tier 1: primary and official sources (51)

• [1] Alabama legislature or real estate agency. Alabama HB382 engrossed (2025), reprinting Ala. Code 34-27-2. law as published on the date checked. Accessed 2026-10-28.
• [2] Alaska legislature or real estate agency. AS 08.88.990(11) (Alaska). law as published on the date checked. Accessed 2026-10-28.
• [3] Arizona legislature or real estate agency. A.R.S. 32-2101(10) (Arizona). law as published on the date checked. Accessed 2026-10-28.
• [4] Arkansas legislature or real estate agency. Ark. Code 17-42-103(13) (Arkansas). law as published on the date checked. Accessed 2026-10-28.
• [5] California legislature or real estate agency. Cal. Bus. & Prof. Code 10131(a), (b) (California), Internet Archive copy of the official page (2025-04-13). law as published on the date checked. Accessed 2026-10-28.
• [6] Colorado legislature or real estate agency. C.R.S. 12-10-201(6)(a)(IX) (Colorado), Internet Archive copy of the official page (2026-02-03 (Division of Real Estate 2026 manual)). law as published on the date checked. Accessed 2026-10-28.
• [7] Connecticut legislature or real estate agency. Conn. Gen. Stat. 20-311(15), (25) (Connecticut). law as published on the date checked. Accessed 2026-10-28.
• [8] Delaware legislature or real estate agency. 24 Del. C. 2902(a)(2) (Delaware). law as published on the date checked. Accessed 2026-10-28.
• [9] District of Columbia legislature or real estate agency. D.C. Code 47-2853.161 (District of Columbia). law as published on the date checked. Accessed 2026-10-28.
• [10] Florida legislature or real estate agency. Fla. Stat. 475.01(1)(a) (Florida). law as published on the date checked. Accessed 2026-10-28.
• [11] Hawaii legislature or real estate agency. HRS 467-1 (Hawaii), Internet Archive copy of the official page (2025-02-22). law as published on the date checked. Accessed 2026-10-28.
• [12] Idaho legislature or real estate agency. Idaho Code 54-2004(12), (39) (Idaho), Internet Archive copy of the official page (2026-06-14). law as published on the date checked. Accessed 2026-10-28.
• [13] Illinois legislature or real estate agency. 815 ILCS 307/10-10, 10-5.10, 10-5.15; 225 ILCS 454/1-10 (Illinois), Internet Archive copy of the official page (2025-03-23). law as published on the date checked. Accessed 2026-10-28.
• [14] Iowa legislature or real estate agency. Iowa Code 543B.4 (Iowa). law as published on the date checked. Accessed 2026-10-28.
• [15] Kansas legislature or real estate agency. K.S.A. 58-3035(n) (Kansas). law as published on the date checked. Accessed 2026-10-28.
• [16] Kentucky legislature or real estate agency. KRS 324.010(5) (Kentucky). law as published on the date checked. Accessed 2026-10-28.
• [17] Louisiana legislature or real estate agency. La. R.S. 37:1431(24)(h) (Louisiana). law as published on the date checked. Accessed 2026-10-28.
• [18] Maine legislature or real estate agency. 32 M.R.S. 13001(1) (Maine). law as published on the date checked. Accessed 2026-10-28.
• [19] Maryland legislature or real estate agency. Md. Bus. Occ. & Prof. 17-101(l), (m) (Maryland). law as published on the date checked. Accessed 2026-10-28.
• [20] Massachusetts legislature or real estate agency. M.G.L. c. 112, 87PP (Massachusetts), Internet Archive copy of the official page (2026-06-15). law as published on the date checked. Accessed 2026-10-28.
• [21] Michigan legislature or real estate agency. MCL 339.2501(u) (Michigan), Internet Archive copy of the official page (2025-12-17). law as published on the date checked. Accessed 2026-10-28.
• [22] Minnesota legislature or real estate agency. Minn. Stat. 82.55, subd. 19(d) (Minnesota). law as published on the date checked. Accessed 2026-10-28.
• [23] Mississippi legislature or real estate agency. Miss. Code 73-35-3(1), (2) (Mississippi), Internet Archive copy of the official page (2025-10-08 (commission compilation, Aug 2025)). law as published on the date checked. Accessed 2026-10-28.
• [24] Missouri legislature or real estate agency. RSMo 339.010.5 (Missouri). law as published on the date checked. Accessed 2026-10-28.
• [25] Montana legislature or real estate agency. MCA 37-51-102(17) (Montana). law as published on the date checked. Accessed 2026-10-28.
• [26] Nebraska legislature or real estate agency. Neb. Rev. Stat. 81-885.01 (annotation: Ford v. American Medical International, 228 Neb. 226 (1988)) (Nebraska), Internet Archive copy of the official page (2026-01-20). law as published on the date checked. Accessed 2026-10-28.
• [27] Nevada legislature or real estate agency. NRS 645.0075, 645.030(1)(d), 645.230(1)(d), 645.863 (Nevada), Internet Archive copy of the official page (2026-04-22). law as published on the date checked. Accessed 2026-10-28.
• [28] New Hampshire legislature or real estate agency. RSA 331-A:2, IX (New Hampshire), Internet Archive copy of the official page (2023-02-06). law as published on the date checked. Accessed 2026-10-28.
• [29] New Mexico legislature or real estate agency. NMSA 61-29-2 (New Mexico). law as published on the date checked. Accessed 2026-10-28.
• [30] New York legislature or real estate agency. N.Y. Real Prop. Law 440(1) (New York), Internet Archive copy of the official page (2025-11-14). law as published on the date checked. Accessed 2026-10-28.
• [31] North Carolina legislature or real estate agency. N.C.G.S. 93A-2(a) (North Carolina), Internet Archive copy of the official page (2026-02-18). law as published on the date checked. Accessed 2026-10-28.
• [32] North Dakota legislature or real estate agency. N.D.C.C. 43-23-06.1 (North Dakota). law as published on the date checked. Accessed 2026-10-28.
• [33] Ohio legislature or real estate agency. ORC 4735.01 (Ohio), Internet Archive copy of the official page (2026-05-18). law as published on the date checked. Accessed 2026-10-28.
• [34] Oklahoma legislature or real estate agency. 59 O.S. 858-102(1), (2) (Oklahoma). law as published on the date checked. Accessed 2026-10-28.
• [35] Oregon legislature or real estate agency. ORS 696.010(20) (Oregon), Internet Archive copy of the official page (2026-10-02). law as published on the date checked. Accessed 2026-10-28.
• [36] Pennsylvania legislature or real estate agency. 63 P.S. 455.201 (Act of Feb. 19, 1980, P.L.15, No.9, sec. 201) (Pennsylvania). law as published on the date checked. Accessed 2026-10-28.
• [37] Rhode Island legislature or real estate agency. R.I. Gen. Laws 5-20.5-1(4) (Rhode Island), Internet Archive copy of the official page (2026-07-13). law as published on the date checked. Accessed 2026-10-28.
• [38] South Carolina legislature or real estate agency. S.C. Code 40-57-30(31) (South Carolina). law as published on the date checked. Accessed 2026-10-28.
• [39] South Dakota legislature or real estate agency. SDCL 36-21A-6(3) (South Dakota). law as published on the date checked. Accessed 2026-10-28.
• [40] Texas legislature or real estate agency. Tex. Occ. Code 1101.002(5) (Texas). law as published on the date checked. Accessed 2026-10-28.
• [41] Utah legislature or real estate agency. Utah Code 61-2f-102(10) (Utah). law as published on the date checked. Accessed 2026-10-28.
• [42] Vermont legislature or real estate agency. 26 V.S.A. 2211(a)(3), (b)(8) (Vermont). law as published on the date checked. Accessed 2026-10-28.
• [43] Virginia legislature or real estate agency. Va. Code 54.1-2100 (Virginia). law as published on the date checked. Accessed 2026-10-28.
• [44] Washington legislature or real estate agency. RCW 18.85.011(3) (Washington). law as published on the date checked. Accessed 2026-10-28.
• [45] West Virginia legislature or real estate agency. W. Va. Code 30-40-4 (West Virginia), Internet Archive copy of the official page (2024-11-03). law as published on the date checked. Accessed 2026-10-28.
• [46] Wisconsin legislature or real estate agency. Wis. Stat. 452.01(2)(a), (c) (Wisconsin), Internet Archive copy of the official page (2026-06-11). law as published on the date checked. Accessed 2026-10-28.
• [47] Wyoming legislature or real estate agency. W.S. 33-28-102(a)(xliv) (Wyoming). law as published on the date checked. Accessed 2026-10-28.
• [48] Illinois General Assembly. 225 ILCS 454/1-10 (Illinois Real Estate License Act definitions), Internet Archive copy 2025-04-03. law as published. Accessed 2026-10-28.
• [49] South Dakota Legislature. SDCL 36-21A-11 (real estate defined). law as published. Accessed 2026-10-28.
• [50] U.S. Census Bureau. Statistics of U.S. Businesses 2022: state by enterprise employment size (us_state_naics_detailedsizes_2022). 2022 (file dated 2025-04-10). Accessed 2026-10-28.
• [51] Office of the Law Revision Counsel via GovInfo. 15 U.S.C. 78o, including (b)(13) registration exemption for merger and acquisition brokers, U.S. Code 2024 edition. 2024 edition. Accessed 2026-10-28.

Tier 3: journalism and expert commentary (3)

• [52] Website Closers. Does it really matter that business brokers are not licensed. updated 2026-09-07. Accessed 2026-10-28.
• [53] Swyft Filings. How to Become a Business Broker. updated 2026-09-13. Accessed 2026-10-28.
• [54] Iconic. Are business brokers licensed. 2025-02-15. Accessed 2026-10-28.