Entrepreneurs love starting a new business.
Few are fond of the legal documents involved.
Every business entity needs various paperwork filed before beginning operations. However…
You may need to get many of them notarized.
Needless to say, mistakes can cost you weeks – if not months – of delays.
Thankfully electronic notarization has revolutionized the process.
Business owners can now get essential documents notarized quicker than ever.
Here’s what you’ll learn:
- Legal Documents Needed to Form a Business Entity
- Documents Entrepreneurs Need Notarized
- What is Electronic Notarization?
- Remote Online Notarization Laws By State
- Documents That Commonly Need To Be Notarized
- Benefits of Electronic Notarization when Starting a Business
- Best Practices For Document Authentication
- Common Mistakes To Avoid
Legal Documents Needed To Form A Business Entity
Before your business can open its doors, there are documents every entity will need.
With over 5.2 million applications in 2024 alone, businesses can’t file these documents quick enough.
Articles of Incorporation or Organization are necessary to register your business. While each state differs, an operating agreement or bylaws document outlines how your business will function on a day-to-day basis.
But did you know some of these documents…
Must be notarized to be considered legally binding? Failing to have your documents authenticated can lead to rejection.
Documents Entrepreneurs Need Notarized
Notarization prevents fraudulent activity.
A notary public will confirm the signer’s identity and ensure they are signing the document of their own free will. This helps protect your business and any third-parties involved.
As such:
Many government entities and financial institutions require notarized documents. Banks will not open business accounts without them. And investors often want to see notarized documents before they consider writing you a check.
Thankfully remote online notarization has made the process easier.
Business owners can satisfy their notary requirements without stepping foot outside their office. To see how electronic notarization works, visit www.superiornotaryservices.com/services/remote-online-notarization/ where notarizations are conducted via video-chat. Identity is confirmed through knowledge-based authentication. Then documents are electronically signed in the notary’s presence.
It’s quick. It’s easy. And it’s changing the way business owners manage and maintain legal documents.
What is Electronic Notarization?
Electronic notarization refers to notarial acts which are completed using electronic processes.
Essentially signers no longer have to meet with a notary public in person. Instead, the notary can authenticate signer’s identity over a secure audio-visual connection. Once identity has been verified, the document is signed in the notary’s presence and an electronic notary seal is attached.
Here’s how it works:
Appointments are scheduled with an approved online notary service. Documents which require notarization are uploaded to the platform. Signers and the commissioned notary meet via video chat. The notary will verify identity using knowledge-based authentication. Signers electronically sign the document while being observed by the notary. Once complete, the document is returned digitally to the requester.
Simple, right?
According to the National Notary Association, there are more than 4.4 million notaries in the US. A growing number of them now offer electronic notarization services.
Remote Online Notarization Laws By State
Each state has different rules governing remote online notarization.
As we head into 2025, 45 states have passed permanent laws allowing remote online notarizations. RON is now permitted in every state that has embraced technological innovation.
Four states adopted laws in 2024 alone. The first state to allow remote online notarizations was Virginia way back in 2011.
Here are some of the states that allow remote online notarization:
- Texas
- Florida
- Nevada
- Michigan
California’s RON bill went into effect January 1st, 2024. Massachusetts and Illinois jumped on board the same year.
Federal lawmakers are trying to pass The SECURE Notarization Act. This bill would establish federal standards for remote online notarizations. Once in place, businesses operating in multiple states would face less confusion regarding document authentication.
If your state hasn’t approved permanent laws, notarized documents can typically be accepted from states that have.
Documents That Commonly Need To Be Notarized
Many documents will need to be notarized when forming a business entity.
These generally include:
- Affidavits or sworn statements
- Deeds or real estate contracts
- Powers of attorney
- Partnership agreements
- Loan documents/agreements
- Corporate resolutions
Depending on the legal structure of your business, not all of these documents may apply to you. LLC’s will have varying requirements than a corporation or partnership.
It’s best to check with your Secretary of State’s office for clarification.
Benefits of Electronic Notarization When Starting A Business
Time is of the essence when starting a business.
If done electronically, notaries can get your documents notarized in a matter of hours. There’s no need to schedule in-person meetings weeks in advance.
Benefits of e-notarization include:
- 24/7 Notary Services – Notary services are available weekdays, weekends, and holidays
- Remote Signings – Signers can be located anywhere within the US
- Secure – Electronic notaries create a digital audit trail of the notarization
- Speed – Documents can be notarized much quicker than traditional methods
- Accuracy – Electronic documents reduce errors typically found in paper filings
Business owners working with partners or investors in different states will greatly benefit.
Best Practices For Document Authentication
While getting your documents authenticated may seem simple, there are some best practices to follow.
First:
Make sure you have all acceptable forms of identification ready. Most Notaries will require government issued identification such as a passport or drivers license.
Know what you are signing. Take the time to read each document prior to your notary appointment. Once during the notarization process could cost you time – and money.
Work with a trusted provider. Not all online notary services are created equal. Look for services that operate within your state’s security guidelines.
Keep records of your documents. Whether digital or physical, keep a secure copy of your authenticated documents.
Pro-tip:
Double check for notary requirements on specific documents. Some documents like a last will and testament may have special notary requirements.
Common Mistakes To Avoid
Starting a business is hard. Don’t let avoidable mistakes slow you down.
Avoid these common mistakes:
- Not having all documents ready to be notarized
- Not using a notary that’s commissioned in a state that allows remote notarization
- Forgetting identification
- Documents missing signature lines or dates
- Not retaining a copy of the notarized document
Simple things like missing a signature line can invalidate a document. Always double check your paperwork before sending it off for notary.
Wrap Up
Starting a business requires you to handle important legal documents.
Articles of incorporation, operating agreements, and EIN applications just to name a few. Businesses need these documents notarized to satisfy banks, government agencies, and outside investors.
But thanks to remote online notarization, business owners have discovered a quick and convenient method for getting documents notarized.
Just remember:
- Identify which documents will need notarization.
- Make sure electronic notarization is allowed in your state.
- Use a trusted platform that follows your state’s security requirements.
- Keep record of all authenticated documents.
The forming process doesn’t have to be complicated. Ensure you take care of the necessary documents and your business can open its doors to customers.
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