photo via www.cpaexamclub.com
by Nellie Akalp of CorpNet
Increasingly, CPAs — particularly those with small business clients — are turning to legal document filing services for their client's business filing needs. It's a symbiotic relationship that makes perfect sense. As a CPA, you provide the financial advice and expertise — for example, recommending that a client should form an S Corporation for tax purposes. And a document filing service handles all the busy work, headaches, and drafts the documents based on the requirements for that state to make sure that the S Corporation gets filed correctly.
The relationship can take many forms. For example, you can simply refer your clients directly to a reputable document filing service. In this case, you free yourself from any involvement, while still making sure your clients' filing needs are properly met and filed in a timely manner. In some cases, you can even earn commissions from these referrals.
Alternatively, you can serve as the 'go between' — and work with your client directly, while the document filing service handles the forms and filings in the background. This option requires more of your personal attention and time, but you maintain a close relationship with the client throughout the process — and further establish yourself as a trusted resource for their business needs.
Of course, not all document filing services are identical and you should carefully consider the options before making a selection. After all, your potential document filing service partner is a direct reflection of your business. To ensure smooth sailing for you and your clients, consider the following:
1. Can I talk to a live person during normal business hours?Sounds pretty simple, but in the days of labyrinthine mail systems and offshore customer support, it's anything but. Even during the course of the most routine filing, questions are sure to arise. It's nice to know you can pick up the phone and talk over a situation with someone who's well versed in the matter and willing to help
2. Do they have programs set up specifically for CPAs? If so, this is a good sign they understand your needs, and already have a seamless process in place for working with CPAs. A CPA-focused program also indicates a commitment to help market you as a resource and provide the support you need to assist your clients.
3. Do they offer educational materials? Look for educational tools you can offer to your clients (such as a checklist for starting a business, or the differences between an LLC and the S Corporation). Even better, look for informational material that lets you add your own branding.
4. Do they operate in all 50 states?As expected, your client's legal dealings won't always be in the state you are operating within. Your client might choose to incorporate in Nevada or close a business in a former state. Look for a document filing service that offers its services in each of the 50 states and provides registered agent representation in each state. This means they have affiliated offices in each state, resulting in quicker filings for your clients.
5. Can they handle the full scope of document filings?Most document filing services will offer your standard legal filing services, such as Incorporation and business license registrations. But make sure you have a trusted partner for allof your document filing needs — such as Articles of Amendments (making changes to a company), Dissolutions (closing a company), Initial and Annual Reports, and Foreign Qualification filings (doing business in multiple states).
6. What is their turnaround time from start to finish? You work hard to provide your clients with great service and fast response times. Make sure your document filing service will do the same. While end to end times will partly depend on the state or county office, the filing service can have an impact by filing quickly and making sure all the i's are dotted and t's crossed, based on the specific requirements of the particular local office.
7. Do they stand behind their services by offering any type of a guarantee? You stake your reputation and client relationship on your vendor partnerships. Be sure your legal document filing service is willing to stand behind their service with a guarantee.
8. Are they affordable?Examine pricing structures for various filing procedures. You're looking for a reasonably priced service that your client base can afford. Like anything, you do get what you pay for…and so-called free services can end up costing you in the long run, particularly if a lack of support requires you to put in more of your precious time to make sure your client's needs are met.
9. Who are the people behind the company?Too many companies today hide behind websites and general support emails. Ideally, you should know exactly who is behind your document filing service and bonus points if the owners take an active role in the company's services.
Partnering with a document filing service may not be right for every CPA's business model. But if you are considering the opportunity, be sure to put in the time upfront to find the right business partner to help you provide added value to your clients and position yourself as a trusted advisor and essential resource for their business to ensure your clients get set up right!
