Posted by EP on 6/18/04 9:51pm
Msg #3215

Independent Contractors Agreements

Has anyone ever entered into an independent contractor's agreement? Is it worth it? Has anyone received work from a signing service that requires you to enter into such an agreement? The reason I ask is because they want a lot of information, i.e., driver's license, a completed W-9, copy of your current notary commission, etc. Any comments would be much appreciated. Thanks.

Reply by HisHughness on 6/18/04 10:06pm
Msg #3216

Virtually all signing services require IC agreements. They wish to limit their liability, and also to acquire non-compete agreements so that you don't fish in their pool of title companies.

Reply by PAW Notary Services on 6/19/04 7:53am
Msg #3218

Just about all SS's want an IC agreement. Some title companies, those who do a lot of their own scheduling, may also want some type of agreement to cover liabilities, requirements, fees, etc.

As for providing information, a W-9 is typical. I suggest that you get an EIN from the IRS for your "business" so you do not have to cough up your SSN.

I never provide a copy of my drivers license. There is absolutely no information on the license that they need. I need to protect my identity. Likewise, I never provide my SSN (see above). I also do not provide any type of auto insurance or homeowners insurance other than a statement to the effect that I maintain what is required.

It is proper and fair that you do provide a copy of your commission (not your stamp or seal, but the certificate), a copy of your bond and E&O if you carry them. The "hiring" agency needs to know that you are a duly commissioned notary public. Of course, this is all done through fax and email and there's nothing stooping you from sending a fake certificate. But you wouldn't do that, now would you? <grin>

Reply by EP on 6/19/04 10:10am
Msg #3223

I was just reluctant to give out information such as a driver's license number, social security number, etc. to some of these companies whom I know nothing about, and then there is no guarantee that I will get work from them, and yet they have some of my personal information. And I have no way of knowing if the signing service is legitimate. Is there any way of checking the background on a particular signing service? The company I am speaking of is USA Signing Services located in California. I don't have an EIN number. Is that something I should look into, or do most notary signing agents detour that route?

I'm not sure if I should incorporate or not. I have heard that it is not necessary.

Thanks for all your comments.

Reply by HisHughness on 6/19/04 11:32am
Msg #3224

Forget incorporation. Incorporating a sole proprietorship is much like buying a Lincoln and putting one of those cloth tops on it: It's expensive, serves no functional purpose, and is actually detrimental to your ends. It's totally unnecessary unless you get so big you're hiring others to close loans while you stay at home eating bon bons and watching soap operas.

Reply by Melanie~~MS on 6/21/04 1:28pm
Msg #3276

If you get much funnier, I don't think I will make it. LOL You have a great whit. I think you missed your calling.

Reply by PAW Notary Services on 6/19/04 11:38am
Msg #3225

I strongly urge anyone and everyone doing business to get an EIN for two reasons: (1) to protect your SSN and identity; and (2) simplifies keeping things separate for tax purposes and record keeping.

You do not have to be incorporated to have an EIN. I submit that probably most signing agents are "sole proprietors" doing business as (dba) some company name. (A company name is not required either.) You can go the IRS website for more information and an application for an EIN. I suggest that you complete the application first, then CALL the IRS. They will be able to take your information and provide you with your EIN at the end of the call. Takes about 15 minutes! Then complete a W-9 with your EIN and keep it handy for whenever a company wants a copy.

For EIN information, point your browser to http://www.irs.gov/businesses/small/article/0,,id=98350,00.html

For the application, point your browser to http://www.irs.gov/pub/irs-pdf/fss4.pdf

For a list of the phone numbers, point your browser to http://www.irs.gov/businesses/small/article/0,,id=97851,00.html

Reply by tomparson/IA on 6/19/04 8:51pm
Msg #3228

Just curious how an EIN simplifies keeping things separate for tax purposes and record keeping. Thanks!

Reply by PAW Notary Services on 6/19/04 9:35pm
Msg #3229

As 1099's come in, the ones with the EIN number automatically get put in a different stack. Using QuickBooks as my "accounting" system, the notary business EIN is the key to the company name. So things are kept separate from my normal consulting income and any other "employee" income that I get, which is flagged against my SSN.

Reply by EP on 6/20/04 6:19pm
Msg #3247

So when you file your income taxes, even though you have a SSN and EIN numbers, is all of this filed together? Or would you have to file a separate tax return for anything with an EIN?

Reply by PAW Notary Services on 6/20/04 7:20pm
Msg #3249

How to file your taxes and which forms are needed depend on your tax situation and how your "company" is designated. As sole proprietors, the business income is usually determined on Schedule C and attached to your personal 1040. (And don't forget Schedule SE for figuring Self-Employment taxes.) Partnerships, LLCs and corporations file separate tax returns and report the incomes differently.

For a complete and thorough tax evaluation, I suggest contacting a tax professional who handles small business taxes and returns.

Paul/FL

Reply by derf4me on 6/22/04 12:30am
Msg #3310

Thanks for contributing such helpful information to this thread. I immediately went to the IRS site, completed the new online application, and it generated my EIN in seconds. :-)