TradeExit Guide

Business brokers in Los Angeles, California

Brokers in Los Angeles follow California rules: yes - real estate license to broker a sale.

Updated 2026-09-23 · 5 sources · By the TradeExit Guide team

Rules that apply to a sale in Los Angeles

Informational only, not legal or tax advice. Accessed 2026-09-23.
TopicWhat the rule saysSource
Who may broker the sale (California law)California treats the sale of a business and its goodwill as a "business opportunity" (B&P Code 10030), and brokering business opportunities for compensation requires a California real estate license (B&P 10131).

California B&P Code 10030 - Business opportunity, California B&P Code 10131 - Real estate broker

State income tax on the gainCalifornia's top rate is 13.3% on income over $1 million, which includes the 1% surcharge; capital gains are taxed as ordinary income (Tax Foundation).

Tax Foundation - 2026 State Individual Income Tax Rates and Brackets

What brokers in Los Angeles 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.

How to vet a broker in Los Angeles

  1. Check the license

    Ask for their California real estate license number and look it up with the state real estate regulator before you sign.

  2. Ask for closed deals like yours

    How many businesses in your industry and size range did they close in the last two years, and at what share of asking price?

  3. Get every fee in writing

    Success-fee percentage, minimum fee, any upfront, valuation or marketing fee, and whether buyers you bring trigger the fee.

  4. Limit exclusivity and the tail

    Listing term (6-12 months is common) and the tail period after it ends during which a sale still owes a fee.

  5. Know who does the work

    The person who pitches you should be the person who runs your deal.

  6. Know your number first

    Run the valuation calculator so you can judge whether a broker’s suggested price is a listing tactic.

Selling a specific kind of business

Dental practiceMedical practiceVeterinary practiceRestaurantInsurance agencyAccounting / CPA firmHome services (HVAC, plumbing, pest, roofing, electrical)

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Frequently asked questions

Do business brokers in Los Angeles need a license?

California treats the sale of a business and its goodwill as a “business opportunity” (B&P Code 10030), and brokering business opportunities for compensation requires a California real estate license (B&P 10131).

Sources

  1. California B&P Code 10030 - Business opportunity (accessed 2026-09-23)
  2. California B&P Code 10131 - Real estate broker (accessed 2026-09-23)
  3. Tax Foundation - 2026 State Individual Income Tax Rates and Brackets (accessed 2026-09-23)
  4. Empire Flippers - Sell your online business (fees and requirements) (accessed 2026-09-23)
  5. Flippa - Pricing (accessed 2026-09-23)
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