When do I set up LLC

I’m a notary but not a LSA yet. Taking that course now. When do I set up a LLC name? Do I even have to have a LLC set up?

I’ve been in this biz over 25 years and have never set up an LLC. I’d speak with a local CPA about the pros & cons before you go that route as it depends upon your financial situation. What you should do is go to IRS.gov and get an EIN (tax ID# that is NOT your SS#) and always use that when ‘signing up w/hiring parties’. It’s FREE, online & done in 5 minutes. Beware that there are companies out there that will charge you for doing what you can do as stated above.


What @Arichter said. You left me nothing to add to your response. :smiley:


Thanks all! So do you just promote under your name only or do you
Use a business name and function as a sole proprietorship I’m guessing

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Doing business under your own name is one option. That’s what I do. Another option is register with your state, county, or municipality for a business name, usually called a DBA for “doing business as”. You’re still doing business as a sole proprietor, but this lets the public find out who you are if they have a business issue with you and only know the business name; they can go to the government and the government will tell them what person goes with the business name.

Finally you can form an LLC. That is more complicated from a tax point of view, but it shields you from some kinds of liability. Talk to a lawyer or accountant to find out if it’s a good option for you.

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I formed an LLC around 5 years ago. It was under my lawyer’s advice. He helped me understand that an LLC does shield you financially. Our E&O insurance only covers us to a certain point. Beyond that, if you’re ever in a lawsuit, you are still responsible for what is not covered by your insurance. They can come after everything you own. If you have an LLC, they can only come after what your business owns. Check with a lawyer. You may find it helpful for you.


I’m thinking I’m going to get my llc online before I do any signings. I’m very paranoid that I will make a mistake, and have my savings and home taken from me. Am I overreacting?

I just had my O &E approved , I have the minimum at 25,000. I’m thinking I should up that?

No, you aren’t overreacting. Protect yourself (name & property). If you want to go direct with the Title Company someday, increase your E&O to $1million or at least $100k. Make sure your E&O cover not only GNW (general notary work) but also as a loan signing agent. Some insurance companies don’t. Checkout Coversmart, BiBerk, & Hiscox. I have Coversmart since it’s cheaper than the other two and covers what I would need.