july1962. I suggest you speak with an attorney regarding the LLC. When I owned three printing businesses, I had a C Corp. Wanted to protect my personal property. Didn't always work. I had to sign a lot of Personal Guaranty's to buy equipment. Banks and leasing companies are too smart for that. Only you, your CPA and attorney can determine if an LLC is the way to go or contact the other notaries and ask them why they chose an LLC.
Sorry, I personally don't know any notaries that have an LLC. Again Good Luck and sorry for your recent loss of a family member.
@july1962 wrote:
Maybe so, but I'm not the only person as a newbie who will come here and read these boards. There might be other newbies in your very own communities who will read what you're saying. I didn't mean to imply you were saying it only to me.
My instructor had NO reason to tell me that, they sold me ONE lesson. It's not a series of ongoing classes, it's one 6-hour class and then you take the test. While she talked about loan signing, she didn't even mention if she teaches a class in that. I hope she does, because I liked her.
I didn't really come here asking advice on how to become a loan signer, I only asked if people had an opinion on sole proprietorship OR LLC's. It appears so far that no one here really knows about LLC's. As I said, google showed me LOTS of notaries that ARE LLC's and I just was wondering if that is a better way to go. I know it costs more money, that's not the issue. I just don't want someone to sue me and be able to take my house away.
@LindaH/FL wrote:
It isn't that we're trying to discourage you from trying - I have no reason to as I'm in Florida and you would not be my competition...it's a case of making sure you have your eyes wide open to the facts before you decide this is the business for you. Of course your instructor is going to tell you that - they have a product to sell - lessons!!
It take time - lots of time and marketing to establish yourself. It also takes money - you need to have the proper equipment to be able to do loan signings. Do you have ANY experience in real estate or loan work? If not you have a lot to learn and you are going to have to invest in some really good training to get you ready for it. You also need to know your notary laws COLD - there is no wiggle room on that.
You need to spend money to make money, and you'll do that in the equipment you MUST have and the advertising/marketing you'll have to do. And even then, the reality is it will probably take you a year or two to establish yourself as a good, profitable business. That's the reality that we want you to see. If you need income immediately, you'd probably be better off getting yourself a 9-5 job to help you financially and to help you get back in the swing of things and set your business up at night and on weekends (that's sort of what I'm doing now after having a hiatus in my signing business since last August - I took a 9-5 to pay the bills as loan signings dropped off to nothing for me and, funny thing, I needed to eat!!...:) )
We not trying to be negative Nellies here - but that's reality, flat and simple. It's going to take time and money for you to get yourself going...study study study....market market market...
Good Luck.
I can't blame you about being concerned about protecting your assets. I'd say the laws regarding LLC's, corporations, etc etc are all state specific and vary widely along with the protection it provides. I think the best thing you can do for your self is consult an attorney or a CPA about the best route to take - guess it all depends on the goal/purpose of the LLC/corp.
Good Luck.
@july1962 wrote:
I live in the Los Angeles area where real estate sales aren't as bad as the rest of the country. The teacher that taught the Notary class is also a loan signer and says she does quite well....she lives in Riverside county. [...]
The teacher also said that a lot of other notaries will try and talk us out of becoming notaries because they don't want new people coming in and taking jobs away from them...which makes sense. But I've also heard that the number of notaries are dropping due to the strict fines we are held to now by the SOS.
The number of CA notaries dropping has nothing to do with the fines... it has everything to do with the fact that they have greatly expanded the background check. It used to just cover the state of CA, but they now put you through the FBI as well. People who may have had a criminal record in another state were often able to obtain a CA commission because they didn't have a criminal record in CA. Now with the FBI check, they are looking at everything, and it is weeding out a LOT of people. The cost of obtaining a commission has also increased, which means a lot of employers who used to pay for their employees to obtain a commission are no longer willing to do so. Those, IMO, are the two biggest reasons.
I don't think any of us would discourage you because we don't want to competition... that's just silly. It's more a a real warning to do your research WELL before you make the investment because a LOT of notaries who take the course and exam end up burning out when they realize they get in way over their head.
First, I wouldn't worry about doing the LLC thing here in CA just yet unless you have substantial assets you're worried about. That's just my opinion... but if money isn't an issue for you, it couldn't hurt. I don't know any notaries who formed as an LLC. They are all sole-props. You'll end up having to pay the minimum annual tax as an LLC in addition to everything else. Sole Proprietors don't have to do that. I'm no expert...seriously, this is just my own dumb opinion, but I'd probably start with general business liability insurance, proper E&O, etc. Don't rely on E&O insurance alone, you'd be surprised how little it really covers. Invest in business liability insurance. Remember that the bond the state requires doesn't protect you at all. If a claim is made against your bond YOU must pay it back. Put your money where you really need it to get started. California notary law does a lot to protect the notary...provided you follow the rules to the letter.
More than that, though...study your area first. If you're in LA, know that even though there ARE fewer notaries these days, LA is still very saturated with mobile notaries. That means more competition and lower fees. Title companies and signing services know they can keep calling around to find somebody to do a job cheaper. You need to research the notaries in your area, see who has a good online presence (or not), figure out where the "lack" is and fill that. Don't just copy what others are doing...it won't get your anywhere. The only way to know this is to research your area and know it well.
You also need to know your expenses -- all of them involved with printing, travel, etc. It's going to be a lot higher than you might think. You also need to factor in taxes AND a profit margin. If you're taking $50-60 jobs, you will more than likely be working at a loss. You have to figure out how to stand out, in a good way. I'll tell you right away that taking lower fees just to get a volume of work isn't how you do it. You will burn out fast and realize that you invested a lot of money for nothing.
The key is RESEARCH. Figure out what it takes. Trust me, you can find it available online if you do enough research. Develop a good plan before you invest much more money. Don't fall for the lines that the class teachers will give you. They want you to tell others and refer them to their classes. There's nothing wrong with that... but they WILL (and do) tell you a bunch of hooey.
The fact is that our industry needs more decent notaries... but sadly, a lot of them burn out fast because they have no idea what they're getting themselves in to or they listen to the wrong people, thinking it's easy money.
@july1962 wrote:
I've been caring fulltime for my disabled sister for the last 9 years and she passed away last month. It's daunting to think of starting over in the job world at age 50! I got to thinking about becoming a notary, and in fact took a class and the test last week. I'm just waiting on my test score.
I have been doing some research into starting my own mobile business (I want to take the loan signing class as well). Can anyone recommend whether it's better to start a sole proprietorship or an LLC? Are there any "notary" websites that are helpful for actually starting the business side of it?
Thanks!
Eric
I suggest you to start a sole proprietorship
I have got my bond Ins. and all of my supplies. I am ready to get started but dont know where to start could someone give me some info or links on this topic? Thank You Carrie Williams.
for the state of Alabama