In Rhode Island, an affiliated licensee creates a corporation or LLC to receive commissions. Which statement is correct?
Correct Answer
C) The entity may be used only to receive commission payments and may not be licensed or conduct licensed real estate activity in its own name
230-RICR-30-20-2 § 2.21 permits a wholly owned corporation or LLC for receiving commissions but bars it from being licensed or conducting licensed activity in its own name. Source basis: Rhode Island Department of State official regulation 230-RICR-30-20-2 § 2.21 and R.I. Gen. Laws § 5-20.5-14; checked 2026-04-30.
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