Productivity and cost-efficiency are the two pillars that uphold tech businesses in a rapidly evolving landscape. There has been a relative slump in this department felt by the country. In fact, a report from McKinsey Global Institute states that United States productivity has slowed in the last two decades.
What the most productive companies do to overcome this slump is invest in a future-ready workforce and adopt a systems approach. One such role that many tech companies overlook is the registered agent. They may seem like an offshoot of business goals, but their role can serve a greater purpose in saving you money and improving productivity.
1. Huge Savings on Compliance Costs
Compliance is one of the biggest factors you need to consider when managing your business. Aside from the fact that non-compliance can harm your brand image, it can also stall productivity and cost very hefty fees if you don’t invest in this approach.
Small businesses and enterprises alike aren’t safe from the high cost of non-compliance. Recently, social media platform X was sued in Florida federal court for trademark infringement. On average, businesses across the country spend around $5 million on investments that help with compliance. On the flip side, non-compliance fees and penalties average around $14 million.
This is what makes the role of a registered agent so crucial when you want to focus on other aspects of business, especially if you are in some of the fastest-growing startup cities. For instance, finding the best registered agent in Alabama is very simple if you work with ZenBusiness or Incfile. This will link you up with an expert in the field who will handle all the registration paperwork. With the average cost of compliance for large firms in the state being no less than $10,000 per employee, it’s worth the investment in the long run.
2. Enables Team to Focus on Main Tasks
Productivity can be greatly hindered when your team is constantly faced with tasks outside of their purview. Complications in communications and business continuity can be harmful in tech, especially since collaboration is so crucial in this age of big data. Remove the need for your core team to be hampered by legal implications and compliance concerns by having a great registered agent who can effectively handle this.
If you look at the most effective financial freedom tips from our YouTube page, you can go farther by investing in the long term and getting proper professional help for the right tasks. Commercial registered agents can even offer useful services like document storage and digitization, which should be prioritized by companies in tech.
3. Improving Fraud Protection
Although this isn’t often referred to as the main duty of a registered agent, their simple existence is a great safeguard against fraud. They offer their own physical address where official notice gets sent, can accurately monitor suspicious activity in communications, and ensure a reliable reference point for all correspondence.
Because of the scale and nature of tech, businesses in this arena are often faced with fraud. One of the biggest examples of this is the $47 million cyber scam that hit Ubiquiti Networks a few years back. Abuse actors are also on the rise, as seen in the mass layoffs by Meta, Amazon, and Alphabet in Silicon Valley.
4. Streamlining Remote Operations
Remote operations are the future of business, especially in tech. In 2023, 16% of companies are already fully remote. Additionally, 66% of employees in the U.S. work in a hybrid setup with partial remote time. With the right tools, remote work can provide major savings for businesses and improve employee productivity.
This is, of course, only possible if remote workers are enabled with the resources they need to get work done efficiently. Thankfully, a registered agent helps streamline this process for business owners as they serve as the common point of interaction for communication directed at the business. Any legal notice, documents from the government, and the like are sent to the registered agent, who then forwards this to relevant parties regardless of where they may be. This means remote workers can comfortably collaborate and work from home without worrying about compliance and privacy.
Overall, taking the time to invest in a great registered agent can do wonders for your business in terms of savings and productivity. For more tips on how entrepreneurs can achieve financial freedom, check out Yes to Tech’s bi-weekly savings challenge.