Starting a Notary business may seem as simple as “hanging a shingle,” but depending on where you operate, you may need:
- A city or county business license
- A home occupation permit
- A DBA (Doing Business As) registration
- A state tax registration
- A formal business structure (LLC, corporation, sole proprietorship)
The answer depends on your location and how you operate your business.
This guide explains what Notaries need to know about business licenses, permits, DBAs, and forming an LLC.
When does a Notary need a business license?
If you notarize documents occasionally and do not advertise or charge fees, you likely do not need a business license.
However, if you:
- Advertise your services
- Charge fees
- Operate as a mobile Notary
- Run your business from home
- Earn regular income
You may be considered a business under local law — and business license requirements may apply.
Business licensing rules vary widely by:
Some jurisdictions require all businesses to register and pay a fee. Others base requirements on gross receipts. Some require a home occupation permit if you operate from your residence.
The key factor is where your business is located, not just where you perform notarizations.
How to determine your Notary business license requirements
To determine what applies to you, contact:
- Your city business licensing office
- Your county clerk’s office
- Your state business registration agency
According to the U.S. Chamber of Commerce, “Even veteran entrepreneurs are often unsure about which city, county, state and federal agencies they have to contact before opening day. And getting this process right is really important — one missed regulation can be a huge setback (or fine) for your business.”
The chamber also suggests that you may want to talk to a lawyer, accountant or another qualified expert if you are unsure about business license requirements.
Business license basics
Getting started is the hardest part. If you’re researching the issue yourself, start with the city in which your business is located and then move on to research county and state rules.
According to the Small Business Administration, a business owner such as a Notary does not typically need any federal permits unless they’re also selling something regulated at the federal level, such as alcohol or firearms, an interesting, albeit unlikely, combination.
Laura Biewer, a Notary entrepreneur who runs At Your Service Mobile Notary out of Modesto, California, said she has a city business license that allows her to operate a business from her home address, costing about $75 a year. She must also file a simple city tax return that runs about 0.002% of gross revenue. In addition, she has a business license for her DBA, (Doing Business As) “At Your Service, Mobile Notary,” which was filed with the county clerk.
“If Notaries are only haphazardly notarizing documents here and there, it is not a business, so no permit is needed, but if advertising themselves to get business, they should consider complying with their city and county requirements,” she said.
According to the City of Modesto’s website, a license is required for all home and commercial businesses within the city. A business physically located outside the city limits that performs a service within the city must also have a license.
Of course, these rules apply to just one corner of the country — every jurisdiction’s rules vary. Houston, Texas, for example, does not require a license, said mobile Notary Tracee Jordan.
Jordan immediately filed her business name as a DBA when she started, but after extensive research, she decided she needed to incorporate to take her business to the next level.
At that point, she sought legal counsel, and she and her attorney agreed to form an LLC, or Limited Liability Corporation, which separates her personal assets from her company’s assets in case she is ever sued. Different types of corporations have different benefits, costs and tax implications, she said.
Regulations can become much more complicated if the Notary has employees — some jurisdictions require additional liability insurance, payroll taxes, and more, but if the Notary is running a sole proprietorship, they wouldn’t have to worry about rules for companies with employees.
Where can Notaries get help?
If all this seems a little overwhelming, or you can’t afford an attorney, there’s free help.
The U.S. Small Business Administration provides significant resources to people starting businesses through SCORE (Service Corps of Retired Executives), a resource partner. SCORE offers referrals to experienced local mentors who can help guide Notaries through regulatory red tape.
The organization also offers helpful templates, including business plan templates; webinars on everything from compliance to marketing; and access to subject-matter experts beyond your specific industry — for example, Notaries can find experts with advertising or legal expertise.
Local government resources are also available; for example, if you’re a Notary in California, the Governor’s Office of Business and Economic Development is a great place to check out different requirements.
Jordan recommends Notaries look for a mentor who knows the local rules. It’s really tough to find a Notary willing to mentor (Jordan called it the “needle in the haystack”), but if you have the time and patience to look, the results are worth it. Discussing business regulations should be an important topic for the two of you.
Some Notaries take a haphazard approach to compliance, or don’t really understand how to professionalize a business, she noted. Mastering regulatory requirements and determining the correct corporate structure for your needs are just a few examples of how to work on, rather than just in, your business.
Related Articles:
Building a Notary business: It pays to have a plan
4 steps to starting a successful Notary business
Additional Resources:
Notary Signing Agent Resources