Mississippi License Law
A Mississippi real estate licensee wants to form a limited liability company (LLC) to receive real estate commissions. Under Mississippi rules:
AThis is prohibited; all commissions must be paid directly to licensees
BA licensee may direct commission payments to a business entity they own, but the entity itself is typically not required to hold a license for this purpose under Mississippi law✓ Correct
CThe LLC must obtain its own broker's license
DAll payments to LLCs are illegal under RESPA
Explanation
Mississippi allows licensees to receive commissions through personal business entities (LLCs, S-corps) they own, though requirements may vary. The individual licensee must maintain their active license; the entity typically does not need a separate license solely to receive the individual's commissions.
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