It may not be the most encouraging thing to think about, but plenty of businesses suffer from financial issues. In fact, statistics show that around 59% of small businesses in America are in poor financial condition. Many of these businesses go into worse debter because of legal troubles that exacerbate existing cash flow problems.
Of course, it’s not all doom and gloom. Popular fast-food pizzeria Sbarro, with over 318 locations in the United States and more in other countries across the world, actually went bankrupt twice in 2011 and 2014. Despite that, they bounced back and continue to operate globally. It’s just about managing your financial responsibilities and costs in an efficient manner.
A ‘Comprehensive Guide on Small Business Loan Financing’ may usher you toward lifelines. But it still comes down to preventative measures and efficiency. If you want to save on legal bills that could potentially have a negative impact on your business, a huge factor to get right is finding a registered agent for your business. Their ability to perform their services efficiently can be a huge determining factor in how much you can save.
1. Non-compliance is a huge attack on finances
One of the worst culprits that can bring you down with legal fees is non-compliance. If you think that what you pay to stay compliant is bad, then you haven’t been hit by a non-compliance fine. The average cost of non-compliance for medium-scale organizations is $14.82 million. That’s about three times as much as the average firm in the United States will spend on regulatory compliance.
It’s simple, really. If you comply with the regulations imposed on your business by law, then you should be able to avoid those huge penalties. A registered agent is a huge boon for compliance. As they ensure that you stay on top of your annual filings, tax notices, and any receipt and forwarding of relevant legal documents.
A lot of proper compliance is just responding. And taking the right actions on time, which is exactly what a great registered agent does.
This is particularly useful in states that are ripe with tons of regulations, as well as those that introduce or change plenty of guidelines often. Consider how Idaho has 36,612 regulations and, at that startling number, is already considered the least regulated state in the country. With a well-versed agent, that doesn’t have to be a threatening prospect.
2. Default judgments can be avoided
If your business is facing some legal complaints and the like, then you really don’t want a default judgment working in your favor. This usually happens when the defendant isn’t able to respond or appear when summoned.
Naturally, it’s up to your registered agent to ensure that any lawsuits and legal documents. Or messages of that nature get to you as soon as possible. Whether or not you get to respond in time will be highly reliant on your agent’s timeliness.
It’s costly enough to deal with such cases. But the financial repercussions could be irrevocably damaging if you miss responding or appearing in time. This factor is of particular importance in states that are notorious for lawsuits.
Finding the best registered agent in New Jersey is a worthy endeavor if it helps you avoid the high cost of a litigious public. Although using a service may cost you more in the short-term, it’s still way more cost-effective than the whopping $177 million of lawsuits settled in the state in the last year alone.
3. Security and privacy do wonders for legal matters
A registered agent gives you more privacy and security when dealing with legal matters. This is because they have their own designated address where any correspondence toward your business will be directed. Moreover, the address they use will be the one available for the public to access if they look it up on record.
Simply avoiding the potential legal costs and other expenses that can come from the liability of your own address is enough. It also gives you much more peace of mind. And minimizes the chances of direct altercations, vandalism, and the like. All of those factors can help you stay in the legal clear. And avoid any further financial woes in that arena.
For more tips and guides, check out Error Express’s other quick reads.
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