Hawaii License Law

What is a 'brokerage firm' versus a 'sole proprietor broker' in Hawaii real estate?

AA. Only sole proprietor brokers are licensed in Hawaii; firms are not separately licensed
BB. A brokerage firm is a licensed entity (corporation, LLC, partnership) through which multiple licensees work; a sole proprietor broker operates individually under their personal license✓ Correct
CC. Brokerage firms can only operate in Honolulu; sole proprietors work statewide
DD. A brokerage firm must have at least 5 licensed agents; sole proprietors can work alone

Explanation

In Hawaii, real estate brokerage can be conducted as a sole proprietorship (individual broker operating under their own license) or as a business entity (corporation, LLC, partnership). Business entities must obtain a brokerage license and designate a qualifying principal broker who is responsible for the firm's operations. Both must maintain proper trust accounts and records.

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