If you are thinking about becoming a notary and turning your commission into a business, you may be wondering: Do I need to form an LLC before I can start working as a notary in California?
The short answer is no.
You generally do not need to form a Limited Liability Company (LLC) simply to begin offering notary services. Many new notaries start their businesses as sole proprietors and decide later whether forming a separate business entity makes sense for them.
However, there is a very important distinction between becoming a notary and building a notary business. Your notary commission gives you the authority to perform notarial acts, while your business structure determines how you operate the business surrounding those services.
Understanding the difference can help you avoid necessary expenses when you’re just getting started and make better business decisions as your notary business grows.
Your Notary Commission Is Issues to You
A notary commission is issued to an individual, not simply to the business that individual operates.
This means forming an LLC does not make the LLC itself a notary. You are the commissioned notary, and you remain responsible for properly performing notarial duties.
You can operate a notary business without immediately creating an LLC.
For many new notaries, that means beginning as a sole proprietor.
What Is s Sole Proprietor?
A sole proprietor is one of the simplest ways to operate a business. If you begin providing notary services on your own without creating another type of business entity, you may be operating as a sole proprietor.
This can make getting started relatively simple.
Depending on where you live and how you operate your business, however, you may still need to consider things such as:
· Local business-license requirements
· A fictitious business name or DBA
· Business banking
· Bookkeeping and tax records
· Appropriate insurance
· Marketing and advertising
· Any state-specific rules governing notaries and notary advertising
Not forming an LLC does not mean there are no business requirements to consider.
So Why Do Some Notaries Form an LLC?
As their businesses grow, some notaries decide that they want a more formal business structure.
An LLC can offer advantages depending on the business owner’s circumstances, but it should not be viewed as a substitute for following notary law or performing notarizations correctly.
This is particularly important for notaries to understand: creating an LLC does not give you permission to ignore your individual responsibilities as a commissioned notary.
Your responsibilities as a notary remains yours.
Should You Form an LLC Before Getting Your First Client?
One mistake new entrepreneurs sometimes make is believing they need to have every aspect of their future business established before they can begin.
They purchase logos, websites, business cards, elaborate branding and form business entities; yet they haven’t served their first customer.
There is certainly value in establishing your business professionally, but don’t allow the process of building a business to prevent you from doing business.
Start by understanding your state’s notary requirements, completing the required commissioning process and learning how to perform your duties correctly.
Then you can make informed decisions about how you want to structure and grow your notary business.
Becoming a Notary Is Only the Beginning
Receiving your commission gives you the legal authority to perform notarial acts, but building a successful notary business requires another set of skills.
You’ll need to learn how to find clients, establish your services, market yourself professionally, set appropriate business policies and develop the confidence to handle real-world appointments.
You don’t have to have everything figured out on your first day.
Every experienced notary was once a brand-new notary preparing for their first appointment.
The important thing is to start with the proper education, understand your responsibilities and continue building your knowledge as your business grows.
