Posted by Katie, CA on 3/22/05 4:34am
Msg #26879

Forming a business partnership with other notaries

I'm new to this business and was wondering if anyone out there might have some knowledge on going into a partnership notary business wit other notaries. Myself and two other notaries were thinking of forming a partnership. We would all split the profits 3 ways no matter who went to the signing and we would all split the costs of running our small business as well. As I started researching general partnership information, I found out that I would be responsible for any acts that the other notaries commit. I could be personally sued and lose my personal assets. I already filled out and completed a fictitious business name application and we registered it with the county clerk. Due to the info I found, I don't want to be liable for any acts the other notaries may commit, so my questions is, for anyone out there that might have a legal background, since I have filed a fictitious business name does that mean that I am now considered a legal general business partner? Basically, what legal responsibilties do I now have because of the fictitious business name. We have not completed a business agreements or anything else. We've only filed the fict. bus. name form.

Reply by ColleenCA on 3/22/05 7:53am
Msg #26889

Just my humble opinion, I don't think I would touch it with a ten foot pole. I could see the 3 of you working in coordination with eachother as in if one is called for a signing and can't take it, one of the other two could be recommended to the SS and hopefully keep the jobs "all in the family". I just think the risk of the legal responsibilities would be too great. On the other hand, you see real estate agents do this all of the time and it seems to work for them. I would sit all three of you down with an attorney who specializes in this field and go over everything before jumping in.

Reply by Jon on 3/22/05 9:57am
Msg #26917

You may want to investigate a LLC or CORP instead of a partnership. They offer a bit more protection than a General Partnership.

Reply by Korey Humphreys on 3/22/05 11:22am
Msg #26954

Limited Liability Partnership (LLP) ???

Does California have the option of a Limited Liability Parntership??? whereas you'd be responsible for your own actions.

In MA LLP's are very common. My business with another Notary/Paralegal/Process Server is an LLP.

Reply by Korey Humphreys on 3/22/05 11:26am
Msg #26956

Do this for now.....

Create a private office for you and your fellow notaries and just keep working as Independent Contractors for the signing companies.

Try that out before you go head over heals because California has a notary every two feet. You don't want to invest in a business partnership if it's not going to work out.

JMO


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Korey

Reply by Katie, CA on 3/22/05 10:53pm
Msg #27148

Re: Do this for now.....

Thanks for the response. Would you happen to know, since I've signed the fictitious name application already, if that binds me into a partnership with them? Because I don't think that I am ready for this and I would like to withdraw my name if that is the case. My biggest concern at this point is that I don't want to be tied to them as a partnership. I would like to form an LLP but it's very expensive. so I rather do nothing at this point. Thanks.

Reply by CaliNotary on 3/22/05 11:02pm
Msg #27149

Re: Do this for now.....

You're asking for legal advice. This is a notary board.

You may get answers here but are you really going to trust legal advice from strangers who aren't even lawyers? That's pretty foolish if you do. Check with the registrar's office.