How to Start a Title Company

A title company serves as an intermediary in the sale and transfer of ownership of a house, building, or property. Title companies also help manage escrow accounts for mortgage holders.

Learn how to start your own Title Company and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services.

Start a title company by following these 10 steps:

  1. Plan your Title Company
  2. Form your Title Company into a Legal Entity
  3. Register your Title Company for Taxes
  4. Open a Business Bank Account & Credit Card
  5. Set up Accounting for your Title Company
  6. Get the Necessary Permits & Licenses for your Title Company
  7. Get Title Company Insurance
  8. Define your Title Company Brand
  9. Create your Title Company Website
  10. Set up your Business Phone System

We have put together this simple guide to starting your title company. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

  • Your state's business records
  • Federal and state trademark records
  • Social media platforms
  • Web domain availability.

It's very important to secure your domain name before someone else does.

Want some help naming your title company?

Business Name Generator

What are the costs involved in opening a title company?

Opening a title company primarily involves the cost of licenses and certifications you’ll need to operate as a title agent. Make sure you’re familiar with all the legal ramifications for operating a title company in your state, and consider hiring a lawyer to help ease the paperwork burdens. 

You also will need to form a limited liability company (LLC) and register your company. Other essential start-up costs include licensing exams, board certifications, securing company bonding, and renting an office space. Once licensed, bonded, and insured, you may start operating.

What are the ongoing expenses for a title company?

Title companies typically have low overhead costs and expenses. Office supplies and employee salaries represent the majority of the ongoing expenses along with utilities and mortgage or rent.

Who is the target market?

Title companies typically target homeowners and real estate agents in and around their local area.

How does a title company make money?

Title companies collect fees for the work they perform in the sale, acquisition, and transfer of homes and properties. Sometimes, those fees represent a percentage of a property’s overall value while title companies also may set standard fees for their services.

How much can you charge customers?

Title company fees will fluctuate, depending on the state in which they operate. But, around $300 is the average cost for their services.

How much profit can a title company make?

Title company agents often average around $50,000 to $65,000 annually with some companies capable of generating revenue in the six-figure range.

How can you make your business more profitable?

Some title companies provide additional services, such as land, home, and building inspections. Others also enable clients to hire them to sort out deeds and ownership disputes.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your title company is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business' expenses all in one place.
  • Build your company's credit history, which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a Title Company. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a title company

The marketing and promotion of a title company can prove tricky. While a market does exist for your services, those services aren’t something the general public considers on a daily basis. Advertising in real estate publications can provide one avenue for greater notoriety. A personal business webpage with extensive information about your company also can increase your likelihood of attracting new clients. Overall, most clients will come to you organically. That makes customer retention very important for this type of business.

How to keep customers coming back

Most customers will come to you as part of the deal in buying or selling a property — or on the recommendation from an existing client. Therefore, it’s critical to provide a professional service with a personal touch to set your business apart from the competition. Additionally, make sure your paperwork and operational standards are top notch with no mistakes. Then, remember to recognize your existing clients and treat them as more than just a customer.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Because of the legal nature and proceedings involved in operating a title company, many owners come from legal backgrounds. Prior experience in real estate, banking, and finance also can prove beneficial when starting a title company.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a title company?

Title companies process home or building sales and acquisitions regularly. From researching land and buildings to performing title searches, following up with inspections, managing escrow accounts, and meeting with clients, a title company owner can have quite a busy schedule throughout the day. Clients also employ title companies to help them prepare a property for sale, usually by advising on potential upgrades and safety concerns.

What are some skills and experiences that will help you build a successful title company?

Because title companies handle property and home sales, their owners must be experts in the field’s current laws and legal proceedings. Having a background in law or an extensive knowledge of the rules and regulations of title procedures is critical.

A strong attention to detail and thoroughness in your paperwork also is necessary to avoid costly missteps in the title process.

Successful owners of this type of business also have excellent communication and client relationship management skills. You’ll need the ability to keep lots of pertinent information in focus and feel comfortable explaining the title process to clients in different methods, depending on their personalities and abilities.

What is the growth potential for a title company?

Title companies are popular because of their operational requirements (e.g., licensing and board certification) as well as their potential for above-average earnings. Check to ensure your market isn’t flooded with existing title companies or target a specific clientele you want to serve. If you’re eager to work, you should be able to find clients because titles constantly change ownership. You’ll just need to make sure you can drum up some initial clients to get you started.

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Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

  • Funding
  • Events
  • Guides
  • Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a title company?

Title companies are numerous, so you should have some clients lined up before you set up shop. At the very least, make sure your area is experiencing relative growth and home turnover.

Consider operating with an existing company to help you build your clientele and experience. A real estate or land development company may be eager to have a title company exclusive to its business as well.

How and when to build a team

A title company can usually operate with just a few people. If your business grows into a high-volume title office, you’ll want to hire a larger team. Otherwise, you and few other employees can handle much of the daily activities for this business.

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