Which entity is formed under common law principles for religious purposes and may not register as a real estate brokerage corporation?

• A. Corporation Sole
• B. Nonprofit Corporation
• C. Professional Corporation
• D. Limited Liability Company

Answer: (A)

A Corporation Sole is a type of entity created under common law specifically for religious purposes, where a single officeholder—such as a bishop or pastor—acts in perpetuity to hold church property and oversee religious duties. This structure is designed to keep ownership and governance of church assets tightly centralized within the religious office, rather than to operate as a general business with multiple stakeholders. Because its purpose and setup revolve around religious property stewardship rather than commercial brokerage activities, it typically isn’t eligible to register as a real estate brokerage corporation under state licensing rules. Real estate brokerages must meet statutory corporate requirements and be prepared to handle brokerage operations and client funds under a conventional corporate framework, which a Corporation Sole isn’t structured to provide. Other entities like nonprofit corporations, professional corporations, or limited liability companies can be organized for broader business or professional activities and can pursue real estate broker licensing if they meet the applicable regulations; they’re not restricted to religious purposes in the way a Corporation Sole is.