TradeExit Guide

Business brokers by state

We could confirm a license or registration requirement for business brokers in 15 states from their statutes or regulator rules (Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Michigan, Minnesota, Nebraska, Nevada, South Dakota, Utah, Washington, Wisconsin); elsewhere anyone can call themselves a business broker. State tax on the gain ranges from zero to 13.3%.

Updated 2026-09-23 · 37 sources · By the TradeExit Guide team

All 50 states

License status from each state's statute or regulator rules (linked on the state page); tax from Tax Foundation 2026 plus state revenue departments. Accessed 2026-09-23.
StateLicense to broker a saleState tax on the gain (2026)City guides

Alabama

No business-broker licenseTop 5.00%-

Alaska

UnconfirmedNone-

Arizona

Yes - real estate licenseTop 2.50% flat3

Arkansas

No business-broker licenseTop 3.90% + special rule-

California

Yes - real estate licenseTop 13.30%6

Colorado

If real estate or a lease is involvedTop 4.40% flat1

Connecticut

No business-broker licenseTop 6.99%-

Delaware

No business-broker licenseTop 6.60%-

Florida

Yes - real estate licenseNone8

Georgia

If real estate or a lease is involvedTop 5.19% flat1

Hawaii

No business-broker licenseTop 11.00% + special rule-

Idaho

If real estate or a lease is involvedTop 5.30% flat + special rule1

Illinois

Registration requiredTop 4.95% flat1

Indiana

No business-broker licenseTop 2.95% flat1

Iowa

No business-broker licenseTop 3.80% flat + special rule-

Kansas

No business-broker licenseTop 5.58%-

Kentucky

No business-broker licenseTop 3.50% flat1

Louisiana

No business-broker licenseTop 3.00% flat-

Maine

No business-broker licenseTop 7.15%-

Maryland

No business-broker licenseTop 6.50% + special rule1

Massachusetts

No business-broker licenseTop 9.00% + special rule1

Michigan

Yes - real estate licenseTop 4.25% flat1

Minnesota

Yes - real estate licenseTop 9.85% + special rule1

Mississippi

No business-broker licenseTop 4.00% flat-

Missouri

No business-broker license0% on cap gains + special rule2

Montana

No business-broker licenseTop 5.65% + special rule-

Nebraska

If real estate or a lease is involvedTop 4.55%-

Nevada

Yes - real estate licenseNone1

New Hampshire

No business-broker licenseNone-

New Jersey

Unclear - ask counselTop 10.75%-

New Mexico

No business-broker licenseTop 5.90% + special rule1

New York

No business-broker licenseTop 10.90%2

North Carolina

No business-broker licenseTop 3.99% flat2

North Dakota

No business-broker licenseTop 2.50% + special rule-

Ohio

No business-broker licenseTop 2.75% flat1

Oklahoma

No business-broker licenseTop 4.50% + special rule-

Oregon

Only for real estate interestsTop 9.90%1

Pennsylvania

No business-broker licenseTop 3.07% flat2

Rhode Island

No business-broker licenseTop 5.99%-

South Carolina

No business-broker licenseTop 6.00% + special rule-

South Dakota

Yes - real estate licenseNone-

Tennessee

No business-broker licenseNone1

Texas

No business-broker licenseNone5

Utah

If real estate or a lease is involvedTop 4.50% flat-

Vermont

No business-broker licenseTop 8.75% + special rule-

Virginia

No business-broker licenseTop 5.75%1

Washington

If real estate or a lease is involved7% cap gains excise + special rule1

West Virginia

No business-broker licenseTop 4.82%-

Wisconsin

Yes - real estate licenseTop 7.65% + special rule-

Wyoming

UnconfirmedNone-

What business brokers charge

Main Street business brokers usually charge a success fee - a percentage of the sale price paid at closing - with a minimum fee; lower-middle-market M&A advisers often use tiered percentages and may charge an upfront retainer credited against the success fee. Few brokers publish their rates. Two that do: Empire Flippers (online businesses) charges 15% of the price up to $700,000, then 8% up to $5M and 2.5% above; Flippa charges a 10% success fee plus a listing fee. Use published schedules as a benchmark when you negotiate, and compare total cost if the deal does not close. See broker vs DIY for the fee math and our broker reviews.

Broker and marketplace reviews

Transworld Business AdvisorsFranchise network (Main Street and lower middle market)Sunbelt Business BrokersFranchise network (Main Street and middle market)First Choice Business BrokersFranchise network (Main Street)Murphy BusinessFranchise network (Main Street and lower middle market)VR Business BrokersFranchise network (Main Street to middle market)Website ClosersM&A brokerage (digital and brick-and-mortar), franchisedEmpire FlippersCurated online-business marketplace / brokerQuiet LightOnline-business M&A advisor

Want help finding a vetted business broker?

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Frequently asked questions

Do business brokers need a license?

It depends on the state. Some (Florida, California, Michigan, Minnesota, Wisconsin, Nevada, Arizona, South Dakota) treat business brokerage as real estate brokerage; others require a real estate license only when real estate or a lease is part of the deal; Illinois requires registration; most states have no requirement.

How do I find a good business broker?

Check the license where one is required, ask for closed deals in your industry and size, get all fees and the exclusivity/tail terms in writing, and know your own valuation first.

Sources

  1. Tax Foundation - 2026 State Individual Income Tax Rates and Brackets (accessed 2026-09-23)
  2. Business Brokerage Press - Business broker state licensing (accessed 2026-09-23)
  3. A.R.S. 32-2101 - Definitions (Arizona Legislature) (accessed 2026-09-23)
  4. California B&P Code 10030 - Business opportunity (accessed 2026-09-23)
  5. California B&P Code 10131 - Real estate broker (accessed 2026-09-23)
  6. C.R.S. 12-10-201 - Definitions (Colorado real estate brokers) (accessed 2026-09-23)
  7. Florida Statutes 475.01 - Definitions (accessed 2026-09-23)
  8. Georgia Real Estate Commission rules, Chapter 520-1 (Licensure and brokerage) (accessed 2026-09-23)
  9. Idaho Code 54-2004 - Definitions (Idaho Legislature) (accessed 2026-09-23)
  10. Illinois Business Brokers Act of 1995 (815 ILCS 307) (accessed 2026-09-23)
  11. Illinois Secretary of State Securities Department - Business Brokers (accessed 2026-09-23)
  12. Michigan Public Act 122 of 2024 (MCL 339.2501 definitions) (accessed 2026-09-23)
  13. Minnesota Statutes 82.55 - Definitions (accessed 2026-09-23)
  14. Neb. Rev. Stat. 81-885.01 - Terms defined (accessed 2026-09-23)
  15. NRS 645.030 - "Real estate broker" defined (accessed 2026-09-23)
  16. N.J.S.A. 45:15-1 - License required (accessed 2026-09-23)
  17. ORS 696.010 - Definitions (Oregon real estate) (accessed 2026-09-23)
  18. South Dakota Real Estate License Laws (SDCL 36-21A), Dept. of Labor & Regulation (accessed 2026-09-23)
  19. Utah Code 61-2f-102 - Definitions (accessed 2026-09-23)
  20. RCW 18.85.011 - Definitions (accessed 2026-09-23)
  21. Wis. Stat. 452.01 - Definitions (accessed 2026-09-23)
  22. Arkansas DFA - 2025 AR1000D capital gains schedule (accessed 2026-09-23)
  23. Wisconsin DOR Pub. 103 - Reporting capital gains and losses (accessed 2026-09-23)
  24. S.C. Code 12-6-1150 - Net capital gain deduction (accessed 2026-09-23)
  25. North Dakota Century Code ch. 57-38 (income tax) (accessed 2026-09-23)
  26. MCA 15-30-2103 - Rate of tax, net long-term capital gains (accessed 2026-09-23)
  27. NMSA 7-2-34 - Capital gains deduction (accessed 2026-09-23)
  28. NM Legislature - HB 252 (2024) fiscal impact report (accessed 2026-09-23)
  29. Vermont Department of Taxes - Taxable income (capital gains exclusion) (accessed 2026-09-23)
  30. Tax Foundation of Hawaii - Individual income tax (HRS ch. 235) (accessed 2026-09-23)
  31. Mass.gov - Massachusetts 4% surtax on taxable income (accessed 2026-09-23)
  32. Washington DOR - Capital gains tax (accessed 2026-09-23)
  33. Missouri DOR - Missouri first state to fully exempt capital gains tax (accessed 2026-09-23)
  34. Comptroller of Maryland - Technical Bulletin 58 (capital gains surtax) (accessed 2026-09-23)
  35. Iowa DOR - Capital gain deduction for certain business / farm assets (accessed 2026-09-23)
  36. Oklahoma Tax Commission - Form 561, Oklahoma capital gain deduction (accessed 2026-09-23)
  37. Idaho State Tax Commission - Capital gains deduction (accessed 2026-09-23)
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