Posted by terrie/IN on 4/2/11 5:25pm
Msg #378408

corporated or llc

I was told if I am going to be doing this business, I need to set up as a corporation or llc. so I am not sued for something personally if it came down to this. Do I need to do this are any of you guys doing this? Is it better to have a fed id # versus social security number to give to these signing companie or title companies.

Reply by enotary/va on 4/2/11 8:16pm
Msg #378412

Corp... Fed ID#....

Reply by PAW on 4/2/11 8:44pm
Msg #378413

Remember that you are PERSONALLY liable for your notary actions. Being incorporated or LLC will not protect you and your assets. It may offer some protection for the non-notary related signing agent stuff. You would need to seek legal counsel for that. Talk to you attorney and CPA about your needs.

BTW, you can get an EIN (Employer Identification Number) from the IRS even if you are a Sole Proprietor, which I submit, most NSA's are.

http://www.irs.gov/businesses/small/article/0,,id=98350,00.html

Reply by JulieD/KS on 4/2/11 9:42pm
Msg #378415

An LLC is a state designation. It's not a tax filing status. If you set yourself up as an LLC, which is fairly easy to do, you then choose how you wish to be taxed. As a single person, your choices are: Sole proprietor, SCorp or C-Corp. Be sure you talk to your tax professional regarding filing taxes if you become a C-Corp or S-Corp. These entities are completely separate from your personal tax return and can be very costly to have prepared. I have people come into my office who have set themselves up as an SCorp, not having any idea it's going to cost them several hundred dollars to have the return prepared, nor do they realize those returns are due on March 15th.
Just some food for thought. As the others said, you can easily get an EIN without being an LLC.

Reply by terrie/IN on 4/2/11 11:05pm
Msg #378417

thank you everybody for your input.

Reply by Susan Fischer on 4/2/11 11:03pm
Msg #378416

Terrie, first, the word is Incorporated. You need to learn

a few basics about business in general, from my take on our post. Your decisions will have impacts and consequences, so it's very important to know what you're doing, and why.

Do you have an accountant to help you through your start-up?

The Small Business Admin (google for info - there's tons to find) is a great resource for beginning entrepreneurs. Additionally, your state may have even more resources on its website, as many states do - Oregon's is great, for instance.

And perhaps taking advantage of the many classes Community Colleges offer to help start-up hopefuls, and are an excellent resource for reasonable costs to learn about the world of Business.

Best of luck.

Reply by Roger_OH on 4/2/11 11:43pm
Msg #378419

Hope you also have the required title producers license...

for Indiana. Yes, most of us are sole proprietors and you should definitely have an EIN. Never give your SSN to companies.

Reply by terrie/IN on 4/3/11 11:41am
Msg #378422

Re: Hope you also have the required title producers license...

yeah roger i do have my title producer license

Reply by MW/VA on 4/3/11 6:17pm
Msg #378427

I set up an LLC (file taxes same as sole proprietor). Corps get complicated & only you can decide. I didn't think E&O Ins. was enough for me, so I took a Business Liability Policy. I'm so glad I made that decision. I was recently sued for "copyright infringement" for using a certain image on my little website, and the insurance handled the situation for me, using their attorneys to negotiate a settlement. I'm guessing it could have cost me thousands of dollars otherwise. I also use a EIN, of course, under my business name.