If you are thinking about starting your own business, you must be wondering what the best way to launch it is. Unless you have vast knowledge about business formation and how everything works, you probably feel a bit overwhelmed. You have the idea for the business, you have chosen the merchandise or the services that you are going to offer on the market, but what should be your first step?
Many businesses don’t go for the official business structure, meaning that they launch them as sole proprietorships. However, each of the structures has its own benefits and downsides, and in this article, we are going to focus on the reasons why you should hire a company that can provide you with business formation services.
What are the basic structures?
Firstly, you can opt for the sole proprietorship. This is the most common structure that startup companies opt for simply because the entire process of launching it is the simplest. If you are the sole owner of the company, there really aren’t any specific requirements that you have to meet.
Next, you can opt for forming a Limited Liability Company (LLC). Basically, this is the best way to protect your personal finances in case your company faces some risk or loses a lawsuit. Unfortunately, things like this can happen, which is why you should consider filling out all the paperwork and structure your company as LLC.
Finally, you can opt for forming a corporation. When it comes to these, you can choose between C and S corporations. Each of these comes with certain benefits, but the most important thing is that they both limit your personal liability.
What are the benefits of outsourcing these services?
Once you have made the decision regarding the structure of your new company, it is time to think about hiring professionals that can provide you with business formation services. The very first thing that you should do is to learn more about the types of services regarding each of the above-mentioned structures. Research all of them and learn about their pros and cons, because this is the only way to ensure that you make the best decision possible.
1. They will help you choose the right form
Without a doubt, this is one of the biggest advantages when it comes to outsourcing this type of service. As we have already mentioned, unless you are an expert and you are familiar with all the details regarding the business world, you will need some help. Taking into consideration that you are about to launch your first company, you probably aren’t aware of all the details of this process.
Due to this, you need an expert in your corner. They will analyze your business, consider all aspects of it, and help you figure out which form is the right one for you.
2. They will save you a lot of time
We are certain that all business owners would agree with us – their time is of the essence. In the business world, every minute can be worth hundreds, if not thousands of dollars. This means that every minute you spend doing something that is not in correlation with your job, you will lose a significant amount of money.
This entire process can turn out to be quite lengthy, so unless you hire someone to work on it, it means that it would all fall on your back. Besides the fact that you probably don’t know all the ins and outs, it means that you would lose a lot of time dealing with all the requirements.
Surely you agree with us that you should focus solely on your work, improving the products, hiring professionals to work for you, and growing your new company.
3. They are always available to you
This benefit can be of crucial importance if your business is home-based or if you often travel for work. When in the process of registering your company, you have to provide your address. This can be tricky if you work outside your office since you won’t be there to receive some important documents or calls.
When you hire an agent, this is something that you don’t have to worry about. Put in layman’s terms, they will be those who will receive all the significant documents, and make sure that they reach your desk. In today’s world, information is of utmost importance, and missing it can prove to be bad for the development of your company.
The same thing goes if you set your own hours, meaning that you don’t maintain traditional business hours. What’s more, as you surely know, companies receive a large amount of “junk mail” and going through it is another time-consuming task. By hiring an agent, you can rest assured that only the important documents will reach you.
4. They will protect you and the company
We have already mentioned that sometimes legal claims, lawsuits, and other similar scenarios can occur. Unless you are a lawyer and know all the details regarding your state’s regulations, there is absolutely no doubt that you will need assistance.
This is when these services come in handy. Not only are you required to have a registered agent in every state you do business, but their job is to make sure that you file all the necessary documents and meet all the deadlines.
In addition, if you are thinking about expanding your company to another state, their expertise will be of crucial significance. Why? Well, every state has its own set of regulations that you must honor, and if you were to be the one who gets to deal with them it would be both a time-consuming and complex process.
When it comes to this, there is no room for mistakes, which is why you have to collaborate with the right people, those who are experts in their field of work. They will make sure that you do all the essential paperwork, and they will also provide you with peace of mind, meaning that you won’t have to worry too much about anything that isn’t in your job description.