Q: As a mobile notary in California, do I need to form an LLC or business entity?

A: You can legally operate as a mobile notary and loan signing agent as a sole proprietor without forming a business entity. However, forming an LLC could offer significant advantages, particularly for liability protection and professional credibility, which are especially relevant given your plans to expand into loan signing services.

A: No, you don’t need to form an LLC or any other business entity to work as a mobile notary or loan signing agent in California. You can operate as a sole proprietor, which is how most notaries begin. The state doesn’t require you to register a business entity in order to perform notarial acts.

That said, forming an LLC or similar structure can help protect your personal assets in case of legal issues unrelated to your notarial duties. California law holds notaries personally liable for mistakes in notarizations, so an LLC won’t shield you from that kind of responsibility. However, if you're offering additional services—like courier work or general document preparation—an LLC might offer some peace of mind for those non-notary business activities.

Also, consider getting Errors and Omissions (E&O) insurance, which is strongly recommended even if it’s not required. It helps cover you if you make an honest mistake during a signing. As you grow into loan signing work, that extra protection becomes even more important.