What is the significance of a notary public? It acts as a legal and certified witness providing their signature in exchange for identification proof. Some of the standard notarized legal documents are mortgages, contracts, and property deeds. Online Notarization public business can run from a home office, brick-and-mortar, mobile or online.
Starting an online notary business involves ten simple steps;
Planning for the Business
The first step in kickstarting an online notarization business is to plan. It would be best to have a clear plan because it is essential for ensuring success as an entrepreneur. With a good plan, you will be able to map out your business’ specifics while discovering some unknowns. As you plan for your online notarization business, ask yourself the following questions as a guide:
- Who becomes your target market?
- What kind of startups and ongoing costs?
- How much do you charge your customers?
- What will your business be named?
For opening a notary business, you will need training and licensure fees that range from $90 to $225, depending on the estate you reside on and its specific requirements. The average cost of bonds is $125 last the lifespan of your certification. Similarly, On your initial budget, you should include a website. You could start with a simple site.
Forming a Legal Entity
The other step will be to form a legal entity. It could be a sole proprietorship, partnership, limited liability company, or corporation. If you establish a legal business entity like an LCC or a corporation, you will be protected from personally being held liable if your notary business is issued.
The third step will be to register for various federal and state taxes before opening for business. You could apply for an EIN to note for taxes. It is both easy and free. There are different types of small business taxes. You may have other options for how your business will be taxed based on the type of business structure you select. S corporations, for example, may benefit from getting taxed as LLCs. You learn more concerning state sales tax to know which best fits your business.
Opening a business bank account and Credit card
It is important to use dedicated business banking and credit accounts for personal asset protection. When you mix up your business and personal accounts, your assets such as your car, home, and other goods will be at risk if your company gets sued. It is known as ‘piercing your corporate veil’ in business law. Additionally, you should learn to build your business credit. That will assist you in getting credit cards, including other financings of your business’ name, higher credit lines, better interest rates, and many more.
Business Accounting Set up
It is essential to record your sources of income and your various expenses to understand your business’s financial performance quickly. however, always keep an accurate and detailed account to simplify the annual filing of your tax.
Obtain the necessary licenses and permits
To avoid hefty fines or the possibility of your business being shut down, ensure that you acquire the necessary licenses and permits.
Local and State Business Licensing Requirements
- Operating a notary business requires some state licenses and permits.
Certificate of Occupancy
The notarization business has run out of offices. Those businesses which operate out of a physical location require a Certificate of Occupancy. Certificates of occupancy confirm compliance with all zoning laws, building codes, and government regulations.
If you have plans for leasing a location:
- It is the responsibility of the landlord to obtain a certificate of occupancy.
- Before you lease, confirm that your landlord has or can obtain a valid certificate of occupancy applicable to a public business’ notary.
- A new certificate of occupancy should be issued after a significant renovation.
If you have plans to buy or build a location
- You will be responsible for obtaining a valid certificate of occupancy from an authority of a local government.
- Review the zoning and building code requirements for the location of your business to ensure that the notary business is compliant and able to obtain a certificate of occupancy.
Obtain Business Insurance
Your notarization business will most definitely need insurance to lawfully and safely operate. Business Insurance will protect your company’s financial well-being if there is a covered loss. A wide range of insurance policy types is available for businesses with various risks. If you are unsure of the risks your business is likely to face, you could start with General Liability Insurance. It is the most common type of coverage small businesses need. The Workers’ Compensation Insurance is another notable insurance you might need for your notarization business.
Your business’s brand is also its identity, In conclusion, represents what it stands for and how the public perceives it. Similarly, A strong brand will enable your business to stand out from the rest of its competitors. If you possess a logo already, you can add a QR code to it.
A notary business is like any other business with proper processes, documentation, and requirements to start. To increase your chances of success in the notary business, you need to complete a state training course and its exam. Some states will demand a notary seal.