Congratulations on starting your new corporation or limited liability company (LLC). If you are new to business ownership, you are rightly concerned about operating within the law. You registered a corporation or LLC in your state, got an employer identification number (EIN, and if you did not get one, get it here), and obtained whatever licenses and permits that you were required to get. All good, right?
However, you have been receiving scary-looking notices in the mail. A typical notice may come in an envelope with official-looking letterhead and a logo that resembles the official seal of a government agency. The name sounds serious. It may even arrive in a bright green or orange colored envelope that looks like it was issued with a speeding or parking ticket.
The letter will look like it came from a court. It may be bar-coded. It will tell you how much money is due, including service fees and costs. It will give you step-by-step instructions a deadline to act and state penalties for failing to comply. You will feel exhorted to send in your money quickly…or else.
Take a second look at it. Did it actually come from a local, state or federal government agency? Or perhaps a business that resembles one?
It is most likely a business trying to make itself look like a state agency, putting itself between you and a state agency. Such notices are written with similar demanding language as used by a regulatory agency, telling you that you must comply…and pay. These notices are scams. States routinely issue press releases and notices warning against them.
Do the right thing for yourself and the planet by tossing them into the nearest recycling container. They are also excellent for use in cleaning up after pets, lining bird cages, or starting campfires. Otherwise, you can disregard them. DO NOT be bullied into sending money.
The following list includes but is not limited to services you may receive fake compliance notices for:
Again, take a couple of minutes to research the source of the notices. If you look up the business online and it ends with “.com”, it is a for-profit business. If it ends with “.gov”, it is a U.S. government site. If it ends with “.org”, it is a not-for-profit entity or could be a state or local government site.
If it is not a government agency, the notice will say “Not a government agency” in small print somewhere on the page. You should disregard it.
If you are unsure, clarify before complying or sending money. There are many ways to do that, but the state agency that approved your corporation is a good place to call.
As always, consider One Click Advisor to be a resource as you create, build and operate your business.