Top 5 Inefficiencies in Entity Compliance

Today, many companies are managing their entity compliance data and processes separately. But think about it…much of the data you track to manage your entities is needed by your Registered Agent and coincidentally, represents much of the same data needed to manage your business licenses. When you think about it this way, how much redundant data are you housing? How much time are you wasting managing your entity compliance? And the big question…is this really the most efficient way?

We don’t think so. In fact, we know it’s not.

As one of the largest Registered Agents in the U.S., we’ve seen a lot. In helping more than 14,000 clients improve their entity compliance practices, we’ve honed in on the top five most common inefficiencies companies face.

1. Siloed data.

Just because you have done things a certain way for a long time, doesn’t mean it is the most efficient. Managing data can be cumbersome to begin with. Now consider that you are likely managing registered agent services, entity management and business licenses in multiple places. Is your data accurate and consistent across different spreadsheets or platforms? How much time are you wasting updating your entity data, separately? You’re running a huge risk of housing inaccurate data and missing important regulatory deadlines that can result in significant penalties for your organization.

2. Too many vendors for similar services.

One of the first steps in operating a successful business is to minimize your costs. If you’re working with multiple vendors for services that can be provided through a single partner, you are definitely paying for it. Eliminating multiple invoices and reducing the number of contracts you have to manage allows you to gain a clear picture of your spend - making it easier to accurately budget and avoid surprises. Save yourself time and money by centralizing your entity management, registered agent and business license data into a single solution.

3. Extensive manual effort.

Need we say more? Too much manual effort will consume your day limiting your ability to focus on more strategic initiatives; and, to run your business efficiently that simply can’t happen. Take the pressure off by trusting a Registered Agent who can alleviate your administrative burdens by automating more than 30 manual processes and managing tasks on your behalf to help reduce your workload.

4. Unnecessary risk.

Because your entity compliance processes are operating separately you likely have several people or internal groups focusing on each of these individually. The chaos of having essential corporate governance data in multiple places can expose your company to unnecessary risk. In fact, during a recent review of companies that switched to Computershare’s Registered Agent Service, we found that on average 5% of legal entities were not in good standing prior to on-boarding. With your data centralized into one solution, you’ll have a single source of truth across your entire organization and complete transparency into your all entity compliance processes.

5. Lack of professional support.

Sure, you may have a team (or teams) of people at your company to help. But do you have a team of experts? Professionals with years of experience to provide guidance and support in your best interest? Better yet, on your behalf? Having a team of dedicated experts at your side, working with you, and doing the heavy lifting of entity compliance tasks significantly reduces your workload freeing you up to focus on what really matters and giving you the confidence you need in your entity compliance.