Posted by Mary Pierce on 2/2/06 8:13am
Msg #93258

setting up business

I had such a good year last year doing this part-time that my accountant said it's time to take this from a sole proprietorship and actually open up a business checking, etc. I even converted my home phone to a business line and have a new phone number for my personal calls. I guess my question is she instructed me to hold a percentage of each check for taxes which I will have to start filing quarterly. How much do you guys hold out? She suggested 33%. This whole thing is making my head spin. My poor husband was expecting a large refund like we usually get and that was pretty much eaten up by my notary income.

Reply by Loretta Reed on 2/2/06 8:27am
Msg #93264

Speak with your tax preparer. They can tell you exactly what to pay quarterly. You pay on what you expect to make. Your tax preparer can also give you the form to send in with your quarterly payment.

Reply by Roger_OH on 2/2/06 8:30am
Msg #93267

Yep, and state taxes (if you have them) and local/city taxes are important too; also to be filed quarterly. I trust you have already been using an EIN instead of your SSN.

I was just wondering why you changed your home phone to a business line; most SAs just use their cell phone as their business number.

I use an American Express Blue card (Visa/MC are fine too) in my company name for all my business expenses; easy to track, no annual fee, and no need for a separate checking account; AMEX includes checks you can write against the account. You should also register your company name with your SOS; check and see too if there are any county or local business licenses you need to have. Good luck as you go forward!

Reply by Mary Pierce on 2/2/06 8:47am
Msg #93271

I did check with the accountant and she said that I don't need a business license. The reason I changed the home phone is because I have very poor cell service up here and don't even have a cell phone. I'm in a very rural, mountainous area. I took my fax line and converted to my personal line. She said that I cannot write off the first line coming into the house which is my personal line so I decided to split them. That's what she suggested to do. I can write that bill off 100% and just keep track of all my long distance on the other line.

Reply by Charm_AL on 2/2/06 8:31am
Msg #93268

Good for you Mary! I'm happy for you

I am trying to get all my stuff together for taxes, I did not hold out last year, but learning as I go, I plan to change a few things in as far as organization goes. I've learned a lot in a year! It was also recommended to me to hold out 33%. When I got my EIN, I got a letter to sign up to have these funds electronically drafted quarterly...didn't do that. I hate money going out and forgetting about it. I think going into a business checking acct and having a dedicated business line is great. I'd like to also get a dedicated e-mail acct for business. It's amazing what you learn as you go, thinking in the beginning..."let me see if I can make some money at this" then it takes on a life of it's own and your head is spinning.

Good Luck to you!

Reply by Mary Pierce on 2/2/06 8:49am
Msg #93273

Thanks a lot! It's amazing how this thing just exploded up here. Even the bank where I opened my account said they will start sending people my way for notary work. They can only notarize bank documents and now I will have an ad in the phone book too.

Reply by LkArrowhd/CA on 2/2/06 8:53am
Msg #93275

Re: setting up business-Mary where are you located?

Reply by Mary Pierce on 2/2/06 9:18am
Msg #93283

Re: setting up business-Mary where are you located?

NE Pennsylvania

Reply by LkArrowhd/CA on 2/2/06 9:26am
Msg #93286

Re: setting up business-Mary where are you located?

Best of luck to you, however doesn't sound like you need any luck....

Reply by Mary Pierce on 2/2/06 9:37am
Msg #93294

Re: setting up business-Mary where are you located?

you know for all the "newbies" out there...I spent many, many hours on the computer researching title companies and SS's. I registered with a lot of them and am also listed on here and 123notary. I get an average of 2-3 calls a week which isn't lot if you want to do this full-time but for me working a full-time job for an attorney it's great. I'm out 2-3 nights a week. He is very supportive of my doing this if I need to come in late or leave early to do a closing which I do not make a habit of. Only in extreme circumstances where they just can't find anyone else. I've even done some relatively close ones on my lunch break. You have to give this time. It is not going to just happen overnight. My husband truly didn't believe it would do anything and just last night he was making me a notary public sign to hang on my front porch. He now sees what I can do. Sure there will be downtimes in the business but I don't rely on this income to pay my bills.

Reply by Leon_CO on 2/2/06 9:45am
Msg #93301

Working full time.

Mary, I just wanted to add that I think it's great that you are having such success. You say that you work full time for an attorney. Are you a paralegal? If so, do you have a specialty (i.e. litigation, ...)?

Reply by Mary Pierce on 2/2/06 9:55am
Msg #93308

Re: Working full time.

I have been working for this attorney for 2 1/2 years. I was an executive assistant in the corporate world for 15 years and when I moved up here 3 years ago he hired me without a stitch of legal experience and took a chance on me. I was mainly hired for his real estate portion and taught me everything I know. Finally he told me to get my notary commission to help him out. One thing led to another and people started calling me to do witness closings. I have learned a lot working for him and am still learning. Now I pretty much handle everything he does and am also the office manager.

Reply by Leon_CO on 2/2/06 10:02am
Msg #93312

Re: Working full time.

That sounds great. The reason I asked is because I'm studying to become a paralegal and intend to specialize in real estate. It was encouraging to hear how things turned out for you. Good luck.

Reply by Mary Pierce on 2/2/06 10:17am
Msg #93318

Re: Working full time.

no formal training whatsoever and my boss told me that I'd learn more this way then going to school. i have hands on experience.

Reply by Leon_CO on 2/2/06 10:28am
Msg #93324

Re: Working full time.

"no formal training whatsoever and my boss told me that I'd learn more this way then going to school. i have hands on experience."

That's what I'm hoping to do - get some experience working with a real estate attorney before I get my certificate. Hopefully I can find one who's willing to take a chance on me like the one who hired you. I agree that you'll learn more that way. Look at Erin Brockavich. She still doesn't have a paralegal certificate, I don't think. Thanks for the info.

Reply by CarolynCO on 2/2/06 9:49am
Msg #93305

Re: Notary Public sign on front porch ...

Better check with your city to see if it is legal to operate a biz out of your home; whether you need to get a home/occupational business license; and if you belong to a homeowners' association, are you allowed to post a sign--even if the city allows you to do so.

Reply by Mary Pierce on 2/2/06 10:02am
Msg #93313

Re: Notary Public sign on front porch ...

My accountant said that I am fine. In fact the lady at the bank that I dealt with to open my business acct. runs the business association in my town and she said that I was fine. She jokingly said that they'd have to come over and do a ribbon cutting ceremony in front of my house.

Reply by Cherilyn_CO on 2/2/06 10:09am
Msg #93315

And...

Let me tell you my experience with advertising as a NP. I had my add in the yellow pages. Not being the sharpest pencil in the drawer, my address was listed as well.

People would come to my door without calling at all hours of the day and night. Wanting me to notarize court papers and the like. A few times I was afraid for my safety and the safety of my young children at home with me.

Needless to say, I will never advertise like that again. That's just an FYI.

Reply by Mary Pierce on 2/2/06 10:16am
Msg #93317

Re: And...

yes I can relate - I dont' want that to happen. They are just putting my business name in and the city with the phone #.

Reply by CarolynCO on 2/2/06 10:32am
Msg #93326

Re: Notary Public sign on front porch ...

The accountant and woman at the bank, although they may know what they are talking about, you *still* need to check with city residential zoning regs and home businesses -- and get it out of their mouths and having it specified on paper is all that much better.

Reply by Mary Pierce on 2/2/06 10:44am
Msg #93333

Re: Notary Public sign on front porch ...

you are right. I'll have to give them a call.

Reply by Closing Dept Independent Settlement Services on 2/2/06 10:23am
Msg #93320

Re: Mary in NE PA

Hi Mary,
We are a title company looking for notaries in your area. Please email me if you are interested in being added to our database and I will send you an application.
[e-mail address]

Thank you,