Posted by Karla/OR on 8/31/11 7:16pm
Msg #395937

To Register as a Business with the State??????

I am very conflicted with this one as a newbie. Could not find anything on orange button regarding this.

I consulted with a very helpful local notary who is not registered.

I also consulted with our State of OR people who advised I don't have to register if I use my own name (first, middle, last). This, however, provides me NO personal asset security if I were to be sued. I would only have the ENO insurance to cover it.

If I use a business type name (i.e., Casey Anthony's Mobile Notary, LLC), I would be protected as a corporation - my personal assets would remain safe. I would pay the state a $100 annual fee.

I'm hoping for responses that help me determine what the majority of you do in this sense AND why.

Thanks in advance.

Reply by Linda_H/FL on 8/31/11 7:35pm
Msg #395940

I can't tell you whether to incorporate or not

but I will tell you this to better help you make your decision..

"ENO" - it's "E&O" - Errors & Omissions insurance - and that only covers you in the event of a "notarial" error - and error in your notary duties. It will NOT protect you in the event of an error, for example, in execution of a loan package, or any other non-notarial act.

Also consider how many assets you have to protect...your call...

Reply by Karla/OR on 8/31/11 8:35pm
Msg #395945

Re: I can't tell you whether to incorporate or not

Thanks for the correction - it's funny, I saw it that way once and thought it was weird but thought to myself, what do I know as a newbie! :O)

I hear what you're saying about protecting your ass(ets). Did not know that it would not protect me in for an error, loan package, etc. Thanks so much! I'll be going to the state on my next click!

Have a good evening.

Reply by Linda_H/FL on 8/31/11 8:38pm
Msg #395946

There IS Signing Agent insurance available for some

states...check the store here to see if available to you.

There's also professional liability insurance

Good Luck.

Reply by Marian_in_CA on 8/31/11 8:39pm
Msg #395947

Re: I can't tell you whether to incorporate or not

What you need to do is talk to a local business attorney if you really want to be serious.

You also need general business liability insurance... as noted, E&O isn't going to cover much.

Reply by Karla/OR on 8/31/11 10:09pm
Msg #395953

Re: I can't tell you whether to incorporate or not

"Thanks" Linda and Marian for your input. Every bit helps.

Reply by Susan Fischer on 8/31/11 11:22pm
Msg #395959

Keep in mind there are serious reporting requirements, fees,

etc. depending on your state's Corporate Regs. It's a complicated "veil" against liability (read: deep pockets.) Turns out I didn't even have pockets, so it was much ado about nothing and after CPA Bob got it all made right and closed out, which was not a walk in the park, and it wasn't a free learning curve about the illusive "corporate veil."

There are other avenues to explore in protecting one's assets, and many professionals in that very business. Having been there, done that with a very small business, my choice is no need to INC., because I'm fairly judgment-proof, on my own.

It's a trade-off, of course, but to me, my life and very small one-owner business doesn't warrant all that is involved in an Incorporation. Having to have meetings with myself was the last straw, but we had fun taking the minutes. ...

Reply by Linda_H/FL on 9/1/11 5:08am
Msg #395965

ROFL Susie!!

" Having to have meetings with myself was the last straw, but we had fun taking the minutes. ..."

ROFL!

Reply by John Tennant on 8/31/11 10:27pm
Msg #395954

Please check your PM

Reply by Karla/OR on 8/31/11 11:06pm
Msg #395957

What is "PM"? Thanks.

Reply by Karla/OR on 8/31/11 11:07pm
Msg #395958

Oh, just had a light bulb moment - is that Personal Mail by chance? Thanks.

Reply by Sylvia_FL on 9/1/11 9:19am
Msg #395977

PM's

PM = Private Message. Go to "Home" and you will see your PM's

Reply by CT_Notary on 9/1/11 12:08am
Msg #395962

Not a solution

Only an individual can hold a notary commission, so incorporation would not shield you from responsibility for your actions and your personal assets could be vulnerable . Any act you perform as a notary, you perform as an individual.

Incorporating and holding assets as a corporation may help you protect assets which you do not own personally.

Reply by MW/VA on 9/1/11 8:21am
Msg #395969

How you set your biz up is your call. I got a business license with my city, and filed for LLC with the state. This was for several reasons. I use a business name and am a sole proprietor. LLC was simple to establish & I can still file taxes the same way as sole proprietor. It's a different situation with a corporation. BTW, I also didn't use any legal programs online to set up the LLC, just filed the appropriate paperwork with the state.
I carry Signing Agent E&O and a business liability policy. I'm a small (teeenny, actually) business, but it's only me & I need to protect my personal assets (haha) in the event of a lawsuit.
I hope this helps. :-)

Reply by Karla/OR on 9/2/11 1:44am
Msg #396076

You bet it did! Thanks!

Reply by taxpro on 9/1/11 10:56am
Msg #395986

LLCs and Corporations are two different animals

Talk to an attorney, accountant and/or financial advisor in your state.

Reply by Kevin/Ct on 9/1/11 3:09pm
Msg #396012

In Connecticut incorporating protects your personal assets on contract claims but not tort claims. Negligence is a tort. Connecticut corporate officers and directors are personally liable for their torts including negligence regardless of whether perpetrated in their representative corporate capacity or in their personal capacity. So it is necessary to carry e&o insurance for negligence also.

Reply by LKT/CA on 9/1/11 7:33pm
Msg #396040

I just went to a seminar for the estate planning attorney I networked with and notarize for her clients currently. It was far more detailed and informative than I imagined. The attorney spoke of protecting both personal and business assets in a Living Trust. The "trust" owns the stuff, you are the trustee over the trust which owns the stuff. This same attorney also assists clients with setting up business entities.

Talk to an estate planning attorney about protecting both your personal AND business - particularly one who's experienced with setting up business entities for their clients.