SECTION 8: Supplies

Earlier, when we spoke about the value of a good, reliable automobile, we also stated that we would go over the other supplies you will need in your mobile Notary signing business. Following is a list of the basics we will discuss here:

• Computer;
• Printer;
• Fax Machine;
• Telephone;
• Cellular Phone;
• Notarial Supplies;
• Office Supplies;
• Planners, Logs, and Appointment Schedulers;
• Business Cards; and
• Files.

Having the correct supplies will either make you or break you in any endeavor. For instance, you wouldn't get on a ski lift in the middle of winter without wearing skis and protective clothing; and you wouldn't go skydiving without a parachute; and you can't notarize a document without notarial supplies.

But you'll need more than your notary seal and a pen if you're going to make this your primary business. Most people already have most, if not all, of the supplies listed here that we're going to discuss, so the relative start-up costs for your business can be minimal.

First consider the fact that you'll need both a home office and an office away from home.

Your Office

Your home office should be in a quiet and secluded area of your home with privacy and security. For instance, if you have children, you do not want them getting into your files or playing on your computer or using any of your supplies as toys without your permission.

Your home office should be fully equipped with everything you will need to conduct your daily business, including:

• A desk;
• Comfortable chair;
• Computer;
• Printer;
• Fax machine;
• Telephone;
• Office supplies;
• Stock of extra supplies;
• Etc.

The room should provide adequate lighting and a comfortable atmosphere. If you plan to convert a spare bedroom into an office, lose the bed. Make sure the office is as presentable as an office away from home. Do not clutter it up with "extras" because you don't know where else to put them in the house. Your office should feel like an office – just because it is in your home does not mean that it shouldn't look and feel like an office away from home. The more you design it as your own personal office, the more business-like it will feel and the better you will feel about working in it. It doesn't have to be fancy – it just has to be yours.

Just as you would not go to work with curlers in your hair, make sure you are ready and dressed appropriately before entering your office in your home. You never know when that "emergency" appointment is going to come through and you want to be ready.

Remember to take advantage of home office deductions on your taxes as well. In order to qualify as a home office, the designated area must truly be business-related. Don't mix your personal files with your business files. Maintain the separateness of the two areas of your life.

Computer and Printer

In this day and age it is imperative that you have a computer and printer with which to conduct business. A laptop computer that can travel with the Signing Agent can be beneficial as well, though they can be very expensive. Most companies will send loan documents to the Signing Agent ahead of time via messenger or courier service. Many companies prefer to email or fax the documents to the Signing Agent in advance. Receiving documents in advance is extremely beneficial to the NSA because prep work can be done before meeting with the borrower at loan signing - such as scanning the documents making sure all documentation is included, and allowing the placement of signature tabs. Remember, some documents are printed one-sided and some are printed two-sided. If you have any questions whatsoever, before you head out the door, you should call the signing company for clarification. Don't wait until you are sitting with the borrower(s). Any hesitation on your part can lead to an air of distrust or skepticism – skepticism that could make or break a signing. It is always best to ask and not "guess."

Don't scrimp on your printer. Many loan documents are prepared using a mixture of legal size and letter size paper. Therefore, it is important that your printer have the capability of dual trays to accommodate the correct paper size. Also, many documents are prepared with the intent of two-sided printing. Both of these features can be extremely valuable. Be sure to keep extra reams of paper (legal size and letter size) available at all times and extra print cartridges on hand.

Fax Machine

Many companies prefer to fax documents to the Signing Agent ahead of time. Fax machines are relatively inexpensive, so make sure you have one in your home office. There are also fax machines that are designed to be as mobile as the Notary for travel.

There are several fax software programs that can be purchased and integrated into your computer email, which can be much more efficient. You can check your email from various locations and you are not tied to having to physically check a fax machine – one that may have run out of paper or ink while you were away.

However, it's still a good idea to have an external fax unit – especially for returning faxes. A scanner can also prove to be a valuable tool.

Telephone and Cellular Phone

Since the business of being a Signing Agent is such a mobile business, a lot of your equipment will travel with you – an office away from the office. In your home office you will, of course, need a telephone. The same is true in your mobile state – you will need a cellular phone. If a client can't reach you, you're stopped before you even start.

Your cellular should be a good one with a generous plan of minutes and roaming capabilities. In this day and age of electronics, text messaging can also be a valuable option. Of course, use your good judgment – do not just run out and get the most expensive phone and plan you can. As you become more practiced in your business, you will find out what options you personally need.

Notarial Supplies

Of course, you must carry your notarial supplies with you at all times.

Notary Seal

Your notary seal and embosser should stay with you always. The self-inking notary seal offers the best choice, even though it is a little more expensive. They offer better clarity and less mess than rubber stamp pad types. Recorders' offices may refuse to accept a document if the notary seal is smudged or is illegible in some way. And, remember, if a loan document is not notarized and executed properly, you may have to do it all over again…at your own expense. Comparatively speaking, it is a little bit of money well spent.

If, for some reason, your seal turns out smeared or otherwise illegible when stamped, draw a line through it and re-stamp close to the original stamp. Of course any time a correction such as this is made, it should be noted in your journal with an explanation as to why the correction was necessary.

A notary seal can last anywhere from a few months to five years, depending upon the extent of its use. If you start seeing imperfections and loss of clarity when the seal is applied, replace it. Better to be safe than sorry.

Remember to renew your commission well before its expiration date. If you let your commission lapse, you may not perform any notarizations – you lose business and you lose income. If you cut it too close, you may not receive your new seal before the old one expires – again, you lose business and you lose income. When your new seal arrives, you must destroy your old seal for your own protection. However, be sure you are aware of your own state laws. Some states require you to return the old seal intact to your county recorder's office or other notarial official.

Journal

Your journal should stay with you always. Remember, the best way to protect yourself is to document your notarial acts in a journal. Journals should always be kept in a locked and secured area under your direct and exclusive control. While you are traveling, a good place to keep your journal is close by you in a briefcase of some sort. Also keep a spare journal with you. You never know when you may be called on to perform extra duties and you do not want to be caught without enough room in your journal to perform the recordation.

Loose Notarial Certificates

You should always carry extra loose notarial certificates, i.e., acknowledgment and jurat certificates. Loose preprinted notarial certificates are designed to be attached to a document, but should be used only in rare circumstances. Most documents will have a sufficient notarial certificate already printed on the document. If a loose certificate must be used because the proper notarial certificate is missing, the signing company or lender should tell you which form to use. Even if you think you know which form is appropriate, making that decision as a Notary is considered an illegal practice of law.

Make sure the loose certificates that you purchase contain a space that allows the entry of Optional or Additional Information.

Sometimes the notarial certificate on a document doesn't leave enough space for the notary seal. The seal should only be placed in a blank area. If the certificate provided does not have sufficient space, a loose certificate can be used. The NSA should draw a squiggly line through the insufficient certificate area and write in, "see attached notarial certificate." The loose certificate can then be properly completed and stapled to the pertinent document in the upper left hand corner. The loose certificate should reference the document it pertains to as well; and the Notary's journal should reflect that a loose certificate was used and why.

Fingerprint Pads

Inkless fingerprint pads are appreciated by all. However, if you use ink print pads, carry extras with you, along with moist towelettes and drying towels (heavy duty napkins would suffice).

Office Supplies

Pens, Pencils and Paper

Keep extra pencils, pens and pads of note paper with you at all times. You should always maintain the capability to jot down information at any given point in time – and you do not want to be "hunting" for a pen or a piece of paper. Maintain a fresh supply of pens with both blue and black ink - several documents must be notarized in black ink only - you do not want to run out of ink. It's a good idea to use your own pens while signing as a Notary. A good marketing tool is to have personalized pens made. They are relatively inexpensive and can be used rather effectively for advertising.

Stapler and Staples

Keep a stapler and an extra box of staples with you. Some NSAs purchase the smaller type. If you opt for a compact stapler, make sure it is a sturdy one and that replacement staples are easy to find – and don't forget to keep a staple remover with you as well.

Sticky Notes and Signature Tabs

Keep a supply of sticky notes (any brand such as the Post-It type) and sticky signature tabs with arrows that point to where the signer should place his or her signature on the document.

This eliminates having to spend time thumbing through multiple documents looking for signature lines, and also helps to eliminate the possibility of missing a signature line.

Business Cards

Have some business cards printed up and use them generously. There are several software programs out there that allow you to design your own business cards; and office supply stores maintain a variety of business card stock when enables you to print your own cards.

Make sure all your contact information is included on the card - your land telephone number, your cellular number and your fax number. Be careful with the amount of cards that you order or print. Volume will certainly give you a quantity discount, but things may change and you don't want someone to have an outdated card with incorrect information on it. If they can't reach you, they will reach someone else.

Files

The Notary Signing Agent should be proficient at filing systems. Every client at least should have a separate folder; and most transactions performed for that client should have a separate subfolder. Clients are typically filed alphabetically by name and signings performed on behalf of that client can either be filed alphabetically by the borrower's last name or by the date of the loan signing. Some NSAs have found that filing by date works better for them as it works hand-in-hand with their journal entries. Depending upon how large you build your business will determine whether your home desk filing drawers will adequately contain all your files or if you will need an additional filing cabinet. At least this is a decision for later on down the road as your business grows. And, as your business grows, so will your income to allow you to make the additional purchases that become necessary.

Tip - Don't let your filing pile up on you. Don't just pile papers in a stack thinking you will take time to file them later. That "later" may not come until after you have already spent hours looking for a file just to find that it is still in that stack of yours.

Planners, Logs, and Schedulers

Mileage Logs

Always keep a mileage log with you. Mileage traveled during the course of your business is tax deductible.

Some companies even pay the Notary Signing Agent for mileage traveled. For instance, the lender may request that you come to their office to pick up some or all of the documents before the loan signing appointment. This happens especially during last minute appointments. Most likely, they will reimburse you for your mileage.

Mileage reimbursement is calculated using the latest IRS formula; for instance, 37 cents per mile. Before you expect to bill your client for mileage costs, however, check with them to see what their going rate is. They may pay more than the IRS formula. Don't short yourself – know the facts.

Daily Planner or Appointment Scheduler

An appointment scheduler is essential to the Notary Signing Agent. Some people prefer a handwritten appointment book; others prefer a Personal Data Assistant (PDA). Both can work in conjunction with one another. Whichever you choose, don't leave home without it.

Tip - When you are driving, bring a handheld tape recorder to tape any information you may need so you don't have to pull over when you are in a hurry. When you arrive at your destination, you can replay the tape and write down the information in your scheduler.

Always "pencil in" your appointments as in this business appointments are especially prone to cancellation and rescheduling. Your appointment book should stay neat and easily readable.

Loan Signing Log

The law states that income derived from Notary Signing Agent notarial acts is reportable as taxable income. Your clients will issue you a Form 1099 for the monies they have paid you for notarial services, if that amount exceeds $600. This form must be included in your federal income tax return and declared on IRS Form 1040 Schedule C.

You should consult a tax attorney or accountant in regard to self-employment taxes.

At any rate, your best protection is clear and concise records of your business activities and transactions. A separate log of loan signings is of proven value. A loan signing log should list the following information:

• Date of signing;
• Signer's (borrower's) name;
• Location of signing;
• Assigning company;
• Beginning, ending and total mileage;
• Number of documents that required signing;
• Number of signatures (each signature counts as one – for instance, a husband and wife signing the same notarial certificate counts as two);
• Signing fees (per signature);
• Date of invoice (includes pertinent information about the signing as well as the date the invoice was prepared);
• Invoice amount;
• Date invoice was paid;
• Fee itemization and tax reporting information:
  • Gross sale (invoice amount),
  • Mileage expenses (total number of miles times the IRS standard per-mile rate),
  • Schedule SE report (the difference between the invoice amount and the value of all the notarizations performed for that transaction); and
• Any additional notes that may be applicable or explanatory.

Though you may think that some of the information is redundant, a loan signing log is used in recordkeeping for year-end taxes and supporting documentation. It's easier at tax time to have everything in one place and not have to search several individual records or logs.