4 Things to Look For When Outsourcing Entity Formation
Law firms are often tasked with creating new business entities, making periodic required filings and retrieving entity records from state offices. Service companies exist to handle these tasks so that lawyers only have one question: How do I choose the perfect service company so that I, in turn, can service my clients flawlessly? Here's what to look for.
1. One-stop shop
Entity formation will be just the beginning of a hopefully long relationship with a new filing service company. Annual reports and other filings, plus records retrievals such as good standing certificates, will all be required over time. Look for a service company that can handle this in all 50 states across the whole range of business filings, including name and lien search, so you are dealing with one partner, instead of many.
While we always want to give the startup a chance (especially being in the field of entity formation), filing applications with the state office is a well-established procedure that shouldn't allow for any mistakes. Even routine paperwork is costly to forget or fumble for the business owner. A track record in the field is a necessary attribute to look for in your one-stop shop.
2. Real people you can contact
In a world of regulations and paperwork, people are still the crucial link in business, and a few words over the phone can often settle huge concerns. If you're going to outsource your clients’ business filing needs, you want to have a personal relationship with the people doing that work for you. It should be possible to reach your filing company easily during business hours by phone.
Responsiveness is everything in a service company, especially one handling regulatory procedures for another's client. Make sure to choose a company that has a strong customer satisfaction ethic. Every company says it does, of course, so be sure to check how robustly it stands up by reading reviews, asking colleagues and testing the service. Try to find out how long professionals been using the service without switching or shopping around. Loyalty is a simple measure of how well a company performs time and again.
3. True liaison with the state
Dealing with state regulations should be more than a set of automated application procedures with the state office using online or mail-in applications. Automation is useful but only with people expediting these operations directly, for an additional layer of proofing to make sure all the paperwork is in order.
You want a company that has an established, working relationship with the Secretary of State. Try to find out how long the filing company has been around and where their office is located. Some filing companies are strategically positioned, so they can visit the Secretary of State offices multiple times a day and handle any emergencies that arise. You could have someone advocating face to face on your behalf without stepping a foot outside of your office.
4. Volume-based pricing
Cost, in addition to quality of service, is important when outsourcing client needs. Volume should lower your cost per job, and you should be able to discuss this before you even start to use a company – another question to raise over the phone in the very beginning. This is another reason availability is an important thing to look for in a service company. Chances are if you can’t get a live person on the phone, you’ll have trouble getting volume-based pricing.
Try SunDoc Filings
We have a decades-long history as a responsive, one-stop shop for all nationwide entity formation and document retrieval needs. With headquarters in Sacramento and a network across the country, our experienced team can be an extension of yours – providing the solutions you need at competitive prices.
Service companies that handle your entity formations can help you be more efficient and focus on what you do best. Here’s how to find the perfect partner.