Posted by Ira Wasserman on 7/20/09 11:19am
Msg #296562

LLC or not?

Is forming an LLC a good idea for signing agents?

Reply by Lee/AR on 7/20/09 11:24am
Msg #296564

imho, Nah. Am sure someone will provide a longer discussion.

Reply by BobbiCT on 7/20/09 11:59am
Msg #296572

Ask a lawyer/insurance agent and accountant ...

Accountant. How it will effect your income v. expenses against your current budget and business plan. You'll be spending money annually for this and, if a single parent or "unemployed," will have some consequents when receiving state/federal benefits.

Lawyer or a SMART business insurance agent. What do you need to maximize protection through your LLC "veil"? Is the expense going to give you the liability coverage your looking for. There's always a chance a sole-member LLC won't protect your personal assets from anything. It doesn't protect you as a notary (public official) and, depending on the lawsuit against you, the plaintiff's attorney may "pierce the corporate value" (aka cut through the LLC you set up for protection to get to your personal assets).

If you plan on adding additional members (more signing agents to split profits and expenses) and hiring staff, then I would recommend it.

Reply by John_NorCal on 7/20/09 2:06pm
Msg #296593

Bobbi has given the most concise argument against an LLC....

as an enrolled agent I generally advise against it to my tax clients. For an individual forming an LLC there are little to no tax benefits. For IRS purposes a single member LLC is considered a disregarded entity, for state purposes it's a means to collect more fees. In California LLC fees are a minimum of $800 per year, I don't know what New York charges. So for my purposes I say no, get sufficient liability insurance instead.

Reply by NewPhoenix on 7/21/09 8:43am
Msg #296687

Ask a lawyer/insurance agent and accountant ...

I agree with what everyone says here about an LLC not really protecting a Notary (public official, individual is commissioned, not the LLC, etc.) and everything you said up to "pierce the corporate value" (I assume you meant veil). The "C" in LLC stands for Company, not Corporation. An LLC is not a Corporation nor a type of Corporation. I have used LLC's for several other businesses. By creating and using an LLC and notifying anyone that does business with it that you only have limited liability (limited to the extent of the LLC's assets, not your own) they know in advance that they can not get to anything else in case of fault or damages. Yes, eventually lawyers got past the corporate 'protection'. LLC's were created in Europe and eventually came over here in order to offer that 'protection' again. So far it is working (again, where it applies, not necessarily for Notaries). Some day lawyers will probably get past that too. But so far, Limited means Limited. Love to see Alan Shore do that. Too bad Boston Legal ended!

Reply by MW/VA on 7/20/09 1:06pm
Msg #296582

I formed an LLC in my state (VA). LLC stands for Limited Liability Company, even though it comes under the state Corporation Commission. I wanted my business listed with the state. Since I am a sole owner, I still file taxes in the same way a sole proprietor does. I am aware that there are "packages" on some of the legal sites for setting up an LLC. I didn't do any of that. It cost me $100 to set up, and the renewal if $50 a year. As I said, I wanted to establish my business & business name at other than the local business license level.

Reply by GA/Atty on 7/20/09 1:19pm
Msg #296586

No n/m

Reply by Linda_H/FL on 7/20/09 1:19pm
Msg #296587

Re: LLC or not?....I would guess it would also depend

on your individual state law and how much protection operating under an LLC gives you in New York...keeping in mind your notary commission is in your personal name (the LLC is not commissioned) so all notarial matters would probably not be covered under the LLC umbrella...

MHO

Reply by Ocean Pacific Notary Services, Inc. on 7/20/09 6:33pm
Msg #296633

Re: LLC or not?....I would guess it would also depend

I agree - don't borther with LLC if you are trying to avoid Liability issue on personal property if you are still filing taxes as a sole-prop. you are still liable personally.
Sometimes, there are more state regs for a LLC then sole prop. I would clear this through your accountant - just on the money side and then speak to atty for legal ramificatons.