With E&O do you still need to establish a LLC if si which kind
No, you do NOT have to establish an LLC (mostly, just adds to your expenses). If, for some reason, you still want an LLC, strongly suggest you talk to an Accountant first. What you should do is get a EIN (eliminates using your SS# as your Tax ID). This can be done in minutes online for free. Google it.
Thanks for the info. I already have a LLC under a business that is not active, Therefore I have a EIN #. Can I use that for my notary ID
That, I do not know. It just seems logical that a person should only have 1 SS & 1 EIN, but I don’t KNOW that!
If you’re filing returns for the business, then each business needs it’s own unique EIN, just like each individual person needs their own unique Social Security Number. From IRS https://www.irs-ein-tax-id.com/learn/faq/can-one-ein/:
"Can I Have More Than One EIN?
The short answer to this question is, yes. It is possible, and may be necessary, to have multiple EINs in the case you (the business owner) own multiple partnerships and need more than one partnership tax ID, corporations, limited liability companies, or other legal entities (i.e. trusts, estates, etc.), which would require independent identification by the IRS for tax purposes.
Every separate, legal entity should have it’s own EIN. A legal entity is defined by its ability to engage in contracts, agreements, incur and pay debts, and to be held liable for its independent actions. Associations, non-profits, corporations, and partnerships are different types of legal entities."
Linda;
Please note: my primary practice is tax research, representation and litigation. Notary signing agency is a ‘sideline’ in my firm’s practice.
Each taxpayer, individually, is entitled to only one SS number, and one additional EIN. Reference Treasury Regs. (26 CFR) §301.6109-1(f)(4)(ii).
If one has multiple sole proprietor businesses, such as someone who is an accountant, notary signing agent and teaches basket weaving on the weekend (no, I don’t teach the basket arts 
), they could have three separate Schedule ‘C’ in their return, each using their SS# or their sole EIN (their choice). I’ve dealt with clients having over a dozen Schedules ‘C’.
Normally, a second EIN would be rejected. If not, eventually, additional EIN’s for an individual will cause problems.
At the very least, the IRS will eventually revoke the EIN (their choice which one). At worst, you’ll be spending hours on the phone trying to get SS earnings credit applied and/or dealing with penalties for S/E tax that’s mis-posted and showing as unpaid.
As far as entity choice is concerned, we had a good discussion on this NotaryCafe thread:
I hope you find this helpful.
HWB.
One more thing.
E&O insurance is coverage. It pays litigation and settlement expenses.
LLC’s and corporations are legal constructs. If properly created and maintained (PAPERWORK!), they create limit recourse against business owners’ (stockholders’) personal assets
The former protects against a claim up to the policy limits. The latter acts as a barrier to claims against one’s personal asset. They are independent concepts - related, but independent.
Your deciion will depend upon what you are trying to protect, and how much effort and money and effort you are willing to spend (e.g.: entity creation, accounting, regular board meetings, etc…) for that protection.
HWB.
Thanks for sharing.When I tried to switch the names, I found out that I did not have a LLC, I had a sole proprietor. I applied for the LLC on line. I’m just waiting to here back from them . I prefer the coverage that the LLC will give me. This is indded a learning process
I’m going to be blunt here.
To effectively shield a stakeholder from liability, an LLC/corporation requires regular ‘care and feeding’, which includes board meetings, franchise tax returns, annual reports, registered agents, resolutions and tax returns.
If you pay lawyers and accountants, this can be easily $1,000-2,000 per year.
If not maintained, the corporation does not protect anything.
I’ve also had situations where I had to bill clients thousands of dollars to fix messed up LLC’s/corps.
If there was confusion between S/P and LLC, this maintenance may be very difficult. Perhaps greater liability insurance policies might achieve the goal better.
HWB.
an LLC is simple to set up. good idea to have one.
Thanks for sharing. How about getting the LLC for the sake of optics, then increasing your E&O to cover any problems that may occur. Most people are like me and don’t know the difference between the two. However when I see that LLC after a name, I go for that one… js