Why might a notary choose to form an LLC?

Forming an LLC, or Limited Liability Company, can be a strategic choice for a notary primarily to meet personal and business liability needs. By establishing an LLC, a notary can protect their personal assets from potential claims or lawsuits that may arise from their notary duties. This means that if legal issues occur, the notary's personal property, such as their home or personal bank accounts, typically cannot be pursued for the debts or liabilities of the business.

Additionally, an LLC provides a structure that can help to keep business finances separate from personal finances, which is beneficial for both organizational and liability reasons. This separation further ensures that personal belongings remain safeguarded should any business-related risks emerge.

The other options don’t align with the primary benefits of forming an LLC. Unrestricted authority is not a characteristic granted solely by forming an LLC; notaries must still adhere to state laws and ethical guidelines. Recording acts is a requirement tied to notarial duties; forming an LLC does not provide a means to avoid such responsibilities. Lastly, enforcing personal contracts is not exclusively linked to an LLC structure but relates more broadly to one’s overall legal rights and responsibilities, regardless of business formation.