Posted by Allison_MI on 1/8/09 3:01pm
Msg #273870

Becoming a Signing Agency or referral source?

Ok, here is the deal.
I have been working for over 4 months with this company. They have been giving me steady work (about the only company that is). Any how. They asked me if I knew other notaries in other states I said they could go on notaryrotary.com and find them. Well she asked me could I find the notaries and them she would send me the package (emailed) and I could contract with the notary in the other state. She does not want to have a lot of 1099 to send out at the end of the year. Why? I didn't ask.

Any how, has anyone been in this situation. How would this work out. I am not a signing agency only a signing agent. I have been for almost 5 years. I would like to farm out the work to other notaries in other states but not sure where to begin, Or how.....any insight is appreciated.

Private message me if you have any ideas. If I go forward with this I will need some notaries.

Any advice appreciated.
Allison

Reply by Ilene C. Seidel on 1/8/09 3:13pm
Msg #273873

Sounds great, I'm not sure what is required. I've spoken to an owner of signing agency she stated they carry 1mil E&O insurance. I guess as long as they don't close their doors in the middle of the night and leave without paying you, great. You might want to check your state if you need a business license and I would definitely incorporate so the liability is on the business not you personally. You need a good accountant that can go over the details.
Just remember good or bad closing agent your responsibile for the great jobs and screw ups. You need to think about the headaches and of course the bottom line on the P & L.
Good Luck.

Reply by Doris_CO on 1/8/09 3:43pm
Msg #273877

It's too bad this other agency doesn't want to send out all those 1099's. So, she sends you the money (?) and you get to pay taxes on the money - and you get to send out those 1099's. Also, what happens if she doesn't pay you. You still have to pay those Notaries you've hired. Do you have the reserves to be able to do that? I'd have second thoughts about this deal.

Reply by davidK/CA on 1/8/09 4:24pm
Msg #273882

Consider this possibility...

Your current SS may be on their last ropes and are looking for a way out so they pass the responsibility onto you. That may be OK if there is enough money to satisfy your requirements when all is said and done. Just remember not to fall into the trap of using the money that belongs to the NSA you have hired for YOUR expenses, and be prepared to pay the NSA for printing, trip fees and no-sign fees out of your accumulated profits. That way you will earn the respect of your subcontractor NSAs.

Reply by Les_CO on 1/8/09 9:11pm
Msg #273914

see messages 271865 & 271883 n/m

Reply by JanetK_CA on 1/9/09 3:01am
Msg #273941

And how much of a cut is this company taking for you to do all the work and take all the responsibility and liability? I agree with the others. Unless you're ready to launch yourself full on as a signing service -- and it doesn't sound to me like you've yet done all the research on this or you wouldn't be here asking -- I would procede with caution. Just be sure you know what you're getting yourself into.

Reply by ReneeK_MI on 1/9/09 6:13am
Msg #273947

Definitely something to go into with eyes wide open and the 'other side' fully covered. On top of all the other advice given, there's one thing that will probably always keep me far away from this ...

The almost impossible task of finding 'good' people out there. Not only would you have to find them, you have to place your name and reputation in their hands.

Now, grant you, I'm in MI also and let me just say Allison, I certainly have no hidden agenda here - if you want this, good for you and I wish you all the best...

I recently worked on something where I looked at the handiwork of a smattering of notaries from across the states - I don't even know what to say, it's pathetic. I couldn't imagine having to find good people all over the place. Once you managed to put a solid data-base together, it would be a different story - but getting from here to there could make/break you.

Then you get to the money part - I think most of us are seeing SS's bidding lower and lower to get the contracts, and all I have to say is I'm not the one bidding so low and I'm not going to be the one doing closings for their low bids.

I'd be willing to bet it's the headaches this vendor's trying to get rid of, not the hassle of 1099's. Anyone with Quicken can take care of those with a push of the button.

Reply by Allison_MI on 1/9/09 8:12am
Msg #273956

Thanks for sharing everyone on the board and privately! First let me say I will never go into any endeavor such as this with one eye closed. I am researching everything mentioned in the post and privately. I have been a signing agent for a few years now (5 in April) and know what signings services do but was wanting info on how they do it. The prospective company is not another signing service, nor is it a title company. I know all about incorporating, etc....and how to start a business so that's is not an issue. All of your advice will be taken to heart. I certainly appreciate it.
I still have not made a decision to do this but again, I will not go into this blindly. thanks

Reply by Sylvia_FL on 1/9/09 8:24am
Msg #273961

Do you have the capital to start a SS???
You need to have the capital so you can pay your notaries without having to wait for the companies to pay you (You will have contracted with the notary and will have the responsibility to pay the notary whether you get paid or not - suppose you have to hire 10 notaries in a week at $100 per signing, do you have $1000 laying around to pay them without having to wait for the title company to pay you)

You will also have the responsibility of registering your SS business and each year sending out the 1099's to the notaries, and the 1096 to the IRS. You will have to keep scrupulous records.
Are you going to be able to guarantee the notaries work? Just because someone says in their profile that they have had X years of experience and done XXX number of signings, doesn't always mean they are good. And if there is a problem with someone you hired, you will take the fall. Are you familiar with all states notary laws, so if a notary you hired in another state calls you with a question will you be able to competently help him/her out?

There is more to owning a signing agency that some signing agents fail to realize.

If you decide to go ahead with this, make sure you have a humongous bottle of Tylenol or something similar for the headaches.

Reply by CaliNotary on 1/9/09 1:48pm
Msg #273992

Yeah, that's just what we need in this business

Two middlemen between the notary and the initial hiring entity. That should do wonders for our fees.