Should You Let a Filing Service Handle Your Paperwork?
You can download forms and fill them out to service yourself, so why would you consider paying a service to do that for you when you are establishing your business entity? Filing your LLC or corporation paperwork may sound easy enough, but in business reality, there may be many benefits to be gained from turning to a professional service to help you through the process.
While it’s not beyond any startup to learn how to form an LLC in California, paperwork is often the last thing on an entrepreneur’s mind when starting a new business. Starting a company is just the beginning of regular paperwork. You will be required to file with the state periodically for as long as the company exists, and if you forget, you can lose your good standing, which carries several disadvantages. Lodging the paperwork with service does the remembering for you.
Get your company formed quickly
Saving time in getting your company entity established is one of the most significant benefits to utilizing a filing service. While you can access all of the documents necessary to form your company on your own, figuring out which specific forms and information you need and how to fill them out correctly requires an investment in time that you might not have. Conversely, professional filing services have extensive experience in what and how to send in exactly the information needed to establish your legal business entity.
If you make mistakes when filling out the paperwork it can delay the process even further, requiring you to spend precious time reworking crucial forms before you can begin taking advantage of the benefits that the LLC or corporate structure offer. By using a service to take care of things for you, you minimize the risks of incorrect filings and improve the odds that everything will go off without a hitch.
Take the frustration out of the name search process
Choosing a name for your company is one of the first big decisions you will make, but it isn’t quite as simple as picking something and writing it on a form. First, you have to go through the name search process to determine that the name you are choosing is available and acceptable. This can take quite a bit of time depending on the name you intend to use, costing you more valuable time on the front end if you decide to take the task on for yourself. However, a filing service can help streamline the name search process for you and relieve you of the burden of this time-consuming endeavor.
Benefit from state-specific expertise
Differences in state law can be incredibly frustrating when it comes to establishing a business entity, and even regulations that seem insignificant can create important distinctions in the process from state to state. We’ve all had experiences with government red tape: whether it’s obtaining a vehicle registration or starting a business, it can be maddening not to be able to find out exactly the types of documents your state needs to continue without extensive research. The best LLC filing services have experience filing paperwork in all 50 states and keep an abundance of resources on hand that detail the specific types of forms and documents that are needed for each state.
Ensure your HOA is compliant
Not only businesses have to file paperwork with the state. Most states require homeowner associations (HOA) to be listed as corporations, and they are required to file timely paperwork and maintain licenses in order to be considered in good standing just like any other corporation. However, many HOAs are also somewhat disorganized, preoccupied with the physical aspects of the property (such as owner violations, a retention pond becoming increasingly dangerous, fencing, and the like). Often they neglect necessary paperwork and state filings, thinking that the accounting or property management services are handling this. But many of these companies don’t handle the filing of business entity paperwork and reports. If you are creating an HOA, you may want to consider hiring a filing service to ensure that you meet the state and federal requirements for good standing.
Reasons not to use a filing service
There are obviously several compelling reasons that entrepreneurs should consider taking advantage of a filing service to establish their company, but are there any drawbacks to doing so? The most obvious potential one is an upfront cost, even if it is moderate and will yield greater benefits in the future. You can either save time or money in the immediate case and if your company is desperately short on cash flow you will have a decision to make. Additionally, by having a service file your necessary paperwork for you, you do lose out on the ability to learn the ins and outs of the process yourself. Of course, you can always study the specifics yourself when time is plentiful if you value it for your own edification.
Focus on your core business processes
Your venture has a unique value proposition that differentiates it from competitors, and that value proposition is what deserves the bulk of your attention as you work towards building a sustainable enterprise. When you choose to hire a filing service to take care of the bulk of the paperwork for you, you free yourself and your partners to focus on the core business processes that enable you to deliver your value proposition to your customers. Utilize the expertise and time savings provided by professional services companies when appropriate, and you will be well on your way to potential entrepreneurial success.