I am looking to start a notary business in new york. i wanted to know what is the best option to elect for taxes. I want to be protected from being sued and not have my personal info linked to business
Answered by Isaiah McCoy, CPA ·
Forming an LLC is what gives you liability protection and keeps your name off certain public filings, not the tax election itself. The tax election is a separate decision layered on top of that legal structure, so you'll want to think of these as two different steps.
For liability, a single member LLC formed in New York separates your personal assets from business debts and lawsuits related to your notary work, assuming you keep business and personal finances strictly separate.
From a tax perspective, a single-member LLC is treated as a "disregarded entity" by default. This means you get full liability protection under New York law while still reporting your income simple and clean on Schedule C of your personal tax return. Choosing an S-Corp or C-Corp tax election usually only makes sense once your net profits reach a point where the tax savings outweigh the added accounting and payroll costs.
