What are the advantages in a few notaries forming an LLC together.
One Specific question in this is - If the LLC is getting a signing contract would any one in the LLC be able to do the signing or is signing contract given individually?
Good afternoon Ray,
From a business structure what you’re describing is a partnership. This could mean each individual would have a say in the business operations, including spending funds, taking on debt, and tax liabilities. From a tax standpoint this can become sharing profits, think K1 filings, among each ‘partner’ regardless of the effort they’ve put in. This means you’ll need a bookkeeper, lawyer, and a qualified tax professional who understand this business…most of them don’t. For further details you’ll want speak with an attorney in the state you intent to charter the LLC.
To answer you question a TC or SS will assign a specific notary to take on an engagement. The TC of SS has already accepted a vetted Notary. If a different Notary closes an engagement, one that was not engaged to do so, it could invalidate the closing.
If you want to form an LLC that can distribute engagements among several notaries, we already have these, they’re called Signing Services. Many of them aren’t doing well in this market, and going out of business.
I’m guessing you might be new to this line of work, as it’s a common question from those starting out, at least a common question that comes into my in box. If you are new, you’ll want to get several years of experience and a few thousand closings under your wings before venturing out on this one.
Feel free to drop me a line, if you want to pursue this venture and i can give some of the financial hazards of doing so.
Mark
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