A notary public is considered part of the Legal Services industry. For federal classification, an independent notary falls under NAICS code 541199 (All Other Legal Services) and, under the older Standard Industrial Classification system, SIC code 7389 (Business Services, Not Elsewhere Classified). That answers the question of what industry a notary public is considered, but the full picture has a few wrinkles: a different NAICS code sounds like it fits and does not, and notaries who work inside banks, title companies, or law firms are classified under their employer’s industry rather than a notary-specific code.
The NAICS Code for Independent Notaries
The North American Industry Classification System is the framework federal agencies use to categorize businesses. Notary services sit inside the Legal Services subsector, NAICS 5411, which also covers law offices, title companies, and paralegal services.1Bureau of Economic Analysis. Guide to Industry Classifications for International Surveys 2022
The code most U.S. notaries should use is 541199 — All Other Legal Services. It covers notary public services alongside paralegal services, patent agent services, and process serving. The U.S. Census Bureau lists “notary public services” as an illustrative example under this code.2U.S. Census Bureau. North American Industry Classification System – NAICS 2022 If your notary work consists of witnessing signatures, administering oaths, and certifying documents, 541199 is what belongs on your Schedule C or Form 1120.
Why 541120 Is Usually the Wrong Code
You will likely come across 541120 — Offices of Notaries, and the name makes it look like a perfect match. It isn’t, for most U.S. notaries. Code 541120 covers offices that draft, approve, and execute legal documents such as real estate contracts and wills, which is closer to a civil-law notary practice or a title and settlement office. The NAICS cross-reference states that notaries who witness signatures and certify documents without drafting or approving legal contracts belong under 541199 instead.3NAICS Association. 541120 – Offices of Notaries
Picking between these two matters. The code you list determines how federal agencies categorize your business activity, and an inconsistent code can slow down loan applications or raise questions during tax processing.
The SIC Code Some Agencies Still Use
NAICS has largely replaced the Standard Industrial Classification system, but some state agencies and insurance underwriters still rely on SIC codes. Under SIC, notary services fall under code 7389 — Business Services, Not Elsewhere Classified, a broad fee-based professional services category that lists “notaries public” among its examples.4Occupational Safety and Health Administration. Description for 7389: Business Services, Not Elsewhere Classified
You are most likely to see 7389 when applying for Errors and Omissions insurance or registering with legacy state business systems. The code has no effect on your tax obligations; it is simply how older databases label the work.
When the Employer’s Industry Code Applies Instead
Many notaries perform notarizations as part of a different job, and in those cases the notary codes above do not apply. The employer’s industry classification governs the work because notarization is a supporting function within a larger business.
The finance and insurance sector employs a large share of notaries, particularly in retail banking, where loan documents, affidavits, and account agreements routinely need notarized signatures. A bank employee who also holds a notary commission is classified under the bank’s own NAICS code, such as 5221 (Depository Credit Intermediation), rather than a notary code.1Bureau of Economic Analysis. Guide to Industry Classifications for International Surveys 2022
Real estate is the other heavy user of notarial services. Title companies and mortgage offices need deeds, mortgage notes, and closing disclosures notarized before the county will record a transfer. Law firms use notaries to authenticate filings, powers of attorney, and sworn statements. In all three settings, the firm’s industry code takes precedence over any notary-specific designation.
Notary Signing Agents
A notary signing agent is a notary who specializes in mortgage loan closings. Signing agents meet with borrowers, walk them through the loan document package, witness signatures, and return the completed paperwork to the title company or lender. Fees typically run $75 to $200 per signing appointment, well above the per-signature fee set by state notary law.
Industry classification does not change for signing agents who work independently. You still report under NAICS 541199 and file income on Schedule C. If the only work you perform is notarizing signatures on loan documents, your income is treated the same as any other independent notary’s. If you also charge separate fees for document delivery, printing, or other non-notarial services, those portions should be tracked separately because they do not share the same federal tax treatment.
Remote Online Notarization
Remote online notarization lets a notary and signer complete a notarial act over a live audio-video connection. As of early 2025, at least 45 states and the District of Columbia have enacted permanent RON laws. Despite the technology component, an independent notary performing RON services still classifies under NAICS 541199. The platform is a tool, not a change in industry. State fee schedules for RON often differ from in-person fees, so check your state’s rules before setting prices, but the classification itself does not shift.
Why the Classification Matters: Public-Officer Status and Taxes
Beyond paperwork, the Legal Services classification reflects a notary’s underlying legal status as a state-appointed public official. Appointments typically come from the Secretary of State and require an application, a background screening, and, in most states, a surety bond. That public-officer status drives a federal tax benefit that many notaries overlook.
Fees earned specifically for notarial acts are exempt from self-employment tax, because notaries are considered public officers under the Internal Revenue Code and their official fees fall outside the definition of net earnings from self-employment.5Internal Revenue Service. Tax Guide for Small Business You still report the income on Schedule C like any other self-employment earnings, but the self-employment tax calculation treats notary fees differently.
If notary fees are your only self-employment income, write “Exempt—Notary” on Schedule 2 (Form 1040), line 4, and skip Schedule SE. If you have other self-employment income of $400 or more, you file Schedule SE but subtract the notary portion by writing “Exempt—Notary” and the amount of your net notary profit on the dotted line next to Schedule SE, line 3, then subtracting that figure before computing self-employment tax.6Internal Revenue Service. Instructions for Schedule SE (Form 1040)
If you run both a notary practice and another business, such as tax preparation or consulting, file a separate Schedule C for each. The separation makes it straightforward to exclude the notary profit from self-employment tax while reporting other income correctly.7Internal Revenue Service. Instructions for Schedule C (Form 1040)
Ordinary Business Deductions Still Apply
The self-employment tax exemption does not strip away your regular business deductions. On Schedule C you can still deduct the cost of your notary seal, journal, bond premium, E&O insurance, advertising, and office supplies. Mobile notaries and signing agents who drive to clients can deduct mileage at the IRS standard rate, which is 72.5 cents per mile for 2026, or track actual vehicle expenses instead.8Internal Revenue Service. 2026 Standard Mileage Rates Parking fees and tolls tied to business travel are deductible under either method.9Internal Revenue Service. Topic No. 510, Business Use of Car
Getting the industry classification right is the first step; getting the tax treatment that comes with it is where the classification actually pays off.