My thought on organizing our own LLC is that it belongs to us, and not an entity or title company over which we have no control in assigning the work. If we can show the title companies that the area to cut costs is not the searchers fee, but rather in the costs of possibly the administration of the personnel they hire to assign the searches. Possibly the LLC that we own and control could do the job for the title company less expensively, more efficiently and with a better quality of product than the cut rate search performed by an uninsured searcher. In other words possibly have the title companies sub contract out the the title search function to us in its entirety, but leave the rest of the closing function with them...arranging the closing, processing procedures, arranging title insurance, etc. If you look at the Hud One form the next time you do a closing, I think you will see that the title work generally does not constitute the major portion of their fee. If they can get rid of the personnel expenses(payrolling, fica contribution, 401K contribution, Federal and State unemployment compensation tax, etc.) the savings they realize may be worth more to them than the profit they make from the title search. This is only one example. There may be others that could be considered also
In so far as the business form to be used, it is generally a good idea to either incorporate of form an LLC in order to limit liability. It affords the participants greater protection.As shareholders in a corporation or members of an LLC the individual searchers, signing agents, etc are protected against some claim against the corporation or LLC in its relations with the title companies.In so far as using an out side marketer is concerned, the LLC could still do that. It is just a matter of expense. Is it less expensive to bring the marketing function in house or hire an outside service
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