I think that is great you need to do what is best for you I was just expressing what I feel because I don’t go in with gifts but I do market myself but feel that they really don’t care specially in my area there are so many notaries it’s just hard so far I have been following up and so far they keep saying no, but you could be the lucky one, keep us posted how it goes. I still have work fortunately from all the companies that I have been working for years now and they pay me good, but none of them are direct escrow in my area they are from other States that I get direct work.
1 Like
Not true. There are no rules that state a minimum revenue level to launch an LLC. In many regions the average home price now exceeds over $100K, I just closed a $1.2 Million transaction yesterday, this means your $100K is insufficient.
Since each state has it’s own business code, I will strongly suggest you have a chat with a qualified professional before proceeding.
2 Likes
Wno are you referring to and what 100k?
Awesome golden nuggets! Hopefully, it will help someone.
I agree with #Riverpointe Tax, E&O coverage should be in the range of one million dollars or greater in view of today’s loans. Here’s my point, we are handling loan closings at different dollar amounts and we need to manage the potential liability risks exposure, so we can properly protect ourselves. As for LLCs, a few considerations are the following: taxation, legal, and other associated filing costs, plays a big role towards how an individual structure their business. That’s a “big” decision to make and really needs professional guidance.
2 Likes
In every state you have to carry a bond. In Texas the bond is $10k, to protect the State. One should also carry and E&O policy, sometimes better known as a Malpractice policy. Many Title companies require $100k in coverage. This is a bit outdated and I recommend $1 Million in coverage. This type of coverage should cost about $7-800 per year, and is deductible as a business expense.
1 Like
Will having a 1mil E&O translate to more signigs? Going from $25k to $100k did help with some that I now work with. I will consider that limit once i get $7k-$8k signings a month.
It is not the case that every state requires a bond. Vermont is an example of a state that does not require a bond.
1 Like
Increasing your liability coverage to $100k resulted in more signings due to the requirements set by the TCs and Lenders. Increasing your liability cap to $1 Million won’t likely bring in more business. E&O insurance is for risk mitigation. If you’re on the loosing end of a lawsuit that exceeds the cap on your E&O policy, you can be liable for the remaining balance. It only takes one signing to turn sour that exceeds your liability cap to bring about legal problems.
Compare the premium costs between $100k and $1 Million and determine if the risks of a lower cap is worth the difference.
Thank you for breaking it down. Being in the Financial Industry has taught me some extremely and very valuable lessons on how to protect my assets 
. IJS…lol
I am aware of the risks and that is part of the reason I will not do more than 3 appointments per day. I know the limits to what my brain can handle in a day. Lol
Just keep in mind that the standard E&O policy held by most notaries ($25k, $50k, $100k) covers notarial errors only. If you’re going to go through the expense of a $1M policy, make sure that policy is going to cover each and every aspect of your signing work, including all actions you take in handling a loan document package.
My $,02 FWIW
4 Likes
Some title companies are requiring $1M of E&O to be considered for closings for their private wealth/high net worth clients. If these signings are going to be your focus, you may want to consider it.
2 Likes
Now that I get and understand.
NOT true. "For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner’s social security number (SSN) OR employer identification number (EIN) for all information returns and reporting related to income tax https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies.
1 Like
Louisiana notaries may choose either Errors & Omissions (E&O) insurance or a bond.
Never use your SSN for your LLC. Always use an EIN as it provides for more privacy.
2 Likes
Market has dried up w mortgage rates so high
Did a purchase yesterday rate over 6%
Refi helocs so plentyful are done
People took the cheap money …nobody going to refi from 2-3% to 6%
Real estate sales way down
All the newbies came in thinking it was easy money
Sorry to be blunt…but if you’re trying to pay bills ,feed a family? This isnt going to do it for you
Even my direct business is way off
Reality is the rates
Good luck
2 Likes
Some of my Tax clients are struggling. Several of the single parent households are not receiving refunds, rather they’re facing owing the IRS. They’re not certain how they’re going to pay this unexpected bill.
1 Like