Reply by Notary1/CO on 7/31/12 12:40pm
Msg #428801
Your name is on your notary application and notary stamp. You are personally liable for your notary mistakes. Best way to avoid liability is to attend training and continuing education classes, know your state notary laws and handbook, follow best practices to use reasonable care, always double check your work, and buy Notary E&O Insurance insurance for protection.
Since a notary is a person (public official), an LLC cannot be a notary. Notary employers may also be found liable for mistakes made by notary employees. If you work for an LLC and make a notary mistake, the victim might sue you personally and also sue your LLC. A solution is to keep minimal assets in your name and the LLC name.
An LLC can be used to keep assets separate. For example, if you own a rental property in your own name, you could lose your rental property in a lawsuit due to a major notary error. If the rental property is owned by a separate LLC, and operated properly, it would be separated from your notary liability. A multiple member LLC provides stronger protection than a single member LLC.
Some states, such as Wyoming, Nevada and Delaware, have stronger asset protection laws for LLCs, limiting the creditor to a charging order as the sole remedy. The Carribean island of Nevis has some of the strongest LLC asset protection laws in the world.
Strong asset protection uses multiple lines of defense, not a single barrier.
This post is not legal advice. Read about LLCs, charging orders and asset protection. Most business attorneys do not know asset protection law. It is a specialty area.
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