As more and more people strive to become entrepreneurs, 2020 was the year with the highest number of business applications on record. Numbers may have eased off slightly from the 4.5 million applications in 2020, but judging from the recent business formation statistics for August 2021, the 427,842 business applications and 31,994 business formations show that the American dream of entrepreneurship continues to drive the economy.
Role of Business Formation Services
Business formation services have increasingly become popular because they offer entrepreneurs convenience when forming their startups. Besides business formation, these services also provide help across a wide range of services, including registered agent services. They also ensure entrepreneurs avoid common mistakes when forming their businesses.
Avoiding Common Formation Mistakes
One of the most common business mistakes is to form the wrong type of legal entity or fail to form one at all. Business formation services have all the tools to help startup owners research the various business structures before choosing the correct one.
Once a business structure is decided on, completing the business formation requires a few important steps. When using a business formation service, each step is set out, ensuring the business verifies the availability of its chosen name, and submits all the correct filing documents, including the Articles of Organization, to the state authority.
Business formation services often offer an expedited service, where the business formation process is completed in just a few days.
Registered Agent Services
Every new business must name and provide the address of a registered agent at the time of its formation to the Secretary of State. This is the address where all important correspondence is delivered, including tax notifications, compliance reminders, and legal notices.
In most states, a business owner or their friend can act as the registered agent, but the requirement is that they are available during business hours to receive mail. Since a businessman cannot do everything, from answering the phone, cleaning, and receiving mail while also growing the business, the services of registered agents are invaluable.
Some of the top registered agent providers have been known help businesses stay abreast of important filings that need to be done.
Access to Important Business Tools and Documents
Most business formation services also offer extra business tools presented in different bundles. Depending on the bundle chosen, a business is supported during the business formation process and after. During the business formation, the services offer the procurement of an Employer Identification Number (EIN), domain name, website, supply various documents and rush the filing speed.
One of the most important documents for every business is the operating agreement. In this document, the business outlines all the decisions about its financials and functions. This document is drawn up to the specific needs of the owners, and if such an agreement is not drawn up, the state imposes its default rules on the LLC. Additionally, the operating agreement protects a business’ limited liability status, clarifies verbal agreements.
Business formation services provide operating agreement templates, making it easier for a business to present the correct details for all its internal affairs.
Often the bundles include discounted legal services, business advice, compliance tracking, reminders, etc. to help support the business after it is formed. Some business formation services have user-friendly dashboards allowing businesses fast access to their documents and notifications.
Reliable, Supportive Services
Incorporation Rocket offers reliable business information and recommends the services of several business formation services. Business formation services are increasingly becoming more sophisticated, offering reliable ways to help businesses form and comply. Many of these offer innovative features, helpful online and telephonic customer support, and provide business owners with peace of mind.
These reliable and supportive services mean business owners worry less, making it easier for them to focus their attention on the bigger picture of growth in these competitive times.
While the surge in new business applications continues to be promising, time will show how many of these new businesses will survive. Entrepreneurs who find an opportunity to strike on a business idea deserve the support that ensures them a vital place in the economy. Business formation services make it easier for startup owners to put their whole being into growing their businesses by taking over the nitty-gritty of the business formation.