Terms | Privacy | About Us | Community Rules. Prior to the sale of commercial or residential property, buyers and sellers engage title and escrow companies to facilitate various aspects of the transaction, ensuring the completion of a legal and orderly transfer of property. Youll also want to make sure that the space is large enough to accommodate your team and office equipment. For example, larger title insurance agencies tend to be more profitable than smaller ones, as they have more resources with which to operate. As the title company gathers the information necessary to make their decision, the borrower may be asked to provide additional information on their financial position and that of any loan guarantors. Learn more about state sales tax and franchise taxes in our state sales tax guides. Securing financing is your next step and there are plenty of ways to raise capital: Bank and SBA loans are probably the best options, other than friends and family, for funding a title insurance business. Youll also need to check your states requirements for surety and fidelity bonds. This will determine your tax cycle, while your business structure will determine which taxes youll pay. LLC formation packages usually include a free year of registered agent services. Check your states website for requirements. If youre unsure of the types of risks that your business may face, begin with General Liability Insurance. The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. Most banks will require you to have an EIN in order to open up an account. Once you pick your company name, and start with the branding, it is hard to change the business name. The main disadvantage is that the owner is liable for all debts and obligations of the business. Not diversifying - Title companies that do not have a balanced portfolio of services and products tend to fail. Keep in mind, if youve chosen to be a sole proprietorship you can simply use your social security number as your EIN. Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Title and escrow companies are primarily B2B operations, at least in terms of the way they market themselves. WebThe corporation name must include one of the following words or abbreviations: Corporation, Company, Incorporated, Limited, Corp., Co., Inc. or Ltd. You must have an established insurer sponsor you; you must pass a written test; and, you must show the state Department of Financial Regulation that you're "competent, trustworthy and financially responsible." However, both title and escrow are regulated activities that require licensing or approval from the state, so you'll need to research the requirements in your jurisdiction before launching your startup. Learn how to start your own Title Company and whether it is the right fit for you. Other Useful Articles for Startup Entrepreneurs. How are you going to successfully complete with existing firms? Heres a list to get you started: Before you can start making money, you need to take the training and pass the exam to become a licensed title agent. The business of the title company generally requires a license from the state in which it will operate. What Does A Title Company Do? | Rocket Mortgage