Form a Limited Liability Company

In order to help protect yourself from the legal liability associated with participating in real estate transactions – even as a witness-only signing agent – it is an extremely good idea to form a Limited Liability Company (LLC) or another standalone business entity.

You will want to start with the entity responsible for corporate / company formation in your state for instructions.  (This is often ALSO your Secretary of State.)  If you’re a DIY’er, this process could take as little as 20 minutes and about $50, depending on your state.  If you need a little help, you will likely be paying a corporate formation company from $100 to $200 to form a company for you.

Once you have formed the company, you should obtain an Employer Identification Number (EIN) from the IRS for that company.