Recorded Webinar: Solutions for Keeping Your Business in Compliance

Solutions for Keeping Your Business in Compliance

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It takes a lot of time and work to keep your business in compliance, including meeting all the necessary requirements, and keeping track of all your filings.

CSC® can help with more than just Registered Agent service. In this complimentary webinar, hear a panel of CSC experts discuss the requirements needed to ensure that your business is in compliance.

During the webinar, our experts will discuss:

  • Different types of compliance
  • Annual report filing
  • Business license needs
  • How business licenses are different than annual reports
  • How to manage global entities, and how foreign requirements differ from those in the U.S.
  • Why compliance is important and how CSC can help you keep your entities in compliance

Find out how CSC can meet your compliance needs so you can focus on actual work.

Slideshare

Webinar Transcript:


Anu: Hello everyone, and welcome to today's webinar, solutions for keeping your business in compliance. My name is Anu Shah and I will be a moderator. Joining us today are Scott Mathews, Lauren Marshall, Brian Bartnicki and John LaPalomento. Scott is one of the leaders of the Corporate Solutions team, and works a client for maximize their partnership with CSC. Lauren had been with CSC for over four years and is currently the corporate trainer on the annual report service team. Brian has worked with CSC for more than a decade, offering his expertise in a field of license, business license and compliance. John is a product manager on the CSC Global Subsidiary Management team and has been with CSC for over seven years. He's a product engineer with CSC's Global Subsidiary Management Solution. And with that, let's welcome Scott, Lauren, Brian and John.

Scott: Thank you very much, Anu. First, I'd like to thank everyone in the attendance and for joining us today. Today, we'll be addressing three areas of concerns many of our clients have voiced to us over time. And here at CSC, we offer a number of services from corporate legal solutions to domain and brand management, to financial solutions. But I really want to focus on three specific areas of the corporate legal solutions that we offer. Those areas are business license, annual reports and Global Subsidiary Management.

I'm fortunate enough to be joined here by three of our subject matter experts today to discuss some of the concerns and issues that many clients such as yourselves are currently facing plus solutions that CSC can offer to streamline and simplify the management of these problems.

So, first to give you a little background on CSC as well the solutions that we offer, CSC has been providing services for over 115 years. And as the world has been transforming from localized main street style business to business that now cross state lines and country lines, we would . . . CSC has been here to assist in that transition.

CSC provides solutions to clients back in the early 1900s to guarantee they can navigate the business world, as companies are now working in multiple states and needing to manage at the time, 45 different ways of processing state forms and properly handling expanding their business. As times have changed, new states were added into the mix and new laws were established to create new jurisdictional requirements from local to state to federal requirements.

Today, we live in any global environment where companies require partnerships with global experts to manage their new and ever-changing corporate governance. And today we're going to kind of as mentioned, talk about three specific areas of concern that clients have. And I'll be moderating the course of the webinar today. But as mentioned, my three industry experts will kind of be diving into some more specific examples.

So, prior to going into the subject of it and talking about our case of Joe's Construction as an example one of our clients and how we assist them today, we want everyone to kind of internalize these questions that are before you right now. These are six questions that a lot of clients will use to kind of audit their internal processes to see where they might have needs, where they have room for growth, and kind of plan for their own future. So, I'll go through these and I could be a little bit of time to quickly assess.

So, what assurance does your current process offer your organization? So these are your processes with managing your business licenses, your annual reports, and your international needs. Does your company have a budget for fees, penalties or other losses associated with missing filings? Throughout the course of today we'll find out some of the different negative consequences to missing filings both domestically and abroad.

As your organization grows, what's your plan for transitioning responsibilities? Whether that person who handles the filing wins the lottery and doesn't show up the next day or if they just advance into a new position at the company, what's your plan as your organization's needs grow? When was the last time you reviewed your license portfolio to make sure it was up-to-date, license as Brian Bartnicki, our business license expert will dive into today.

Licensing requirements do change periodically at the local jurisdictions and with very little notice. So it's often good to evaluate it from time to time. How do you track your company's portfolios associated with your licensing? And then finally, how do you store and management minute books, important filings, business licenses and other corporate data? We'll be discussing the CSC technology but it's good know and kind of understand what everyone else is currently partnering with out there today.

So, today we are going to dive into a little test case talking about Joe's Construction, LLC. They are an example of one of our many clients that we have here at CSC. And first, I want to dive into the local requirements that a business often go through and other local needs that do arise from time to time.

And to begin the discussion, we're only bring in Brian Bartnicki to talk about Joe's Construction. They are a Delaware, LLC to give a little background, and they're out of Pennsylvania. So, Brian with that, could you please tell the audience a little bit some of the normal things that a client needs to do when they start locally.

Brian: Sure, Scott. Thanks. So, let's say we'll call Joe wants to expand into multiple states but he's starting in Pennsylvania. So how he begins that is when he decides where he's going to do work, where is he going to have an office? He needs to understand what is required for him as that governing authority. There actually over 160,000 governing authorities in the United States.

Example in Pennsylvania would be townships, cities, counties, boroughs just to give a few examples as to how we're talking about multiple levels of government throughout the country. So Joe, let's say Joe is going to do business in Philadelphia. He's going to open an office there, one of the things that he needs to be aware of is, is his office an unincorporated area or an incorporated area within Philadelphia? That could actually dictate whether or not he's regulated at the city or the county.

Additionally, he's probably need to get a state contractor's license as well. Now, for other industries, there could be other unique requirements at the local level. Anyone who's a jewelry store in New York City might need a precious metals license, for example. Or some people might have employees working out of their home, and they might need a home occupancy license, believe it or not in some industries. But these are just a couple examples.

But the big challenges that people run into with understanding what is related to their industry at the local authority. You know, some of the terms that we run into, you might see like an occupational license, you might hear a privileged tax license, you might hear a business tax receipt in Miami, for example. All these terms are interchangeable, and the challenge is understanding what applies to your business at the local level beyond your industry specific regulations.

And then ones you have them in place the next challenge is going to be, "When are they coming due?" And to sort of go back to this idea of 160,000 governing authorities, the challenge with these local authorities and even state boards, people are pharmacy, Board of Pharmacy, engineering, architects. All of these authorities have different due-dates and when they're coming due. So it could be bi-annual filing. It could be annual.

Beverly Hills in the retail space might be every six months that you have to report gross revenue. So, the challenge that people run into is really trying to manage when they're coming due considering all these local authorities can change their laws at any given time. Their city ordinance, their county ordinances can change at the snap of a finger.

And then as you grow and as you expand, the other challenges that people run into, you know, just how do you manage them? How do you organize them? Some people might have filing cabinets, some people might have Excel spreadsheets, some people might have proprietary software they've developed, but the challenge is really updating that again, due to all these variables, I mean, any given time.

So when you're starting at the local level, in Joe's case here he's probably looking at when he's bidding on jobs and he's moving for opportunity purposes he needs to make sure that he's compliant to do that work. But these are the challenges that really will react to that process.

Scott: Thank you, Brian, for providing us the information on the local challenges that client . . . Now, let's move along the story of Joe and kind of talk a little bit more about some of the other ways that clients typically advance. So after you start your local business you start acquiring your local licenses. Now, Joe's been a little bit more successful and he starts doing business in New Jersey and Maryland, some of the other neighboring state here on the East Coast. And that's where not only does his licensing requirements starts to grow, but now you have additional fillings outside of business licensing, and that's with the Secretary of State. And Lauren Marshall are expert on annual reports is going to dive into some of the concerns that clients are facing today with those.

Lauren: Great. Thank you so much, Scott. So, as he mentioned, Joe started as a Delaware, LLC which is a very simple tax payment as to every June 1st. But as his business has expanded so has his file requirements. Many states these days actually do not even send out a reminder or a notice that your report is coming due. They expect you just to know that is coming due.

Some jurisdictions can have you file a report based off of your anniversary month or some jurisdictions have you file at the set date. Since Joe has gone into Maryland, he has a personal property tax return that is due, the 15th of April every single year. But as he's in New Jersey, that state is one that has you file your report by your anniversary month. That report is called an annual report. Most states actually have different names for them.

In Nevada for example, call it their annual report and annual list, and that is also due in your anniversary month. One example of a confusing state is going to be Illinois. That state actually requires you to file your annual report the day before your anniversary month. So for example if you registered new business in December, your report is actually due the end of November. So that's going to be a big challenge for it.

If you do not file your reports on time or if you do not file them at all, you can definitely expect to incur some penalties, some fees, you can lose your good standing. I've seen clients actually not file their report in Wyoming and their reinstatement fees can be up to $10,000. That is just for one entity.

As I mentioned, Illinois which is a challenging one, I know for everyone, you actually have five and a half months to file that report. If you do not file it, they will revoke your status. And you have to then file your reinstatement as well as any late fees, and it's definitely pretty much, a pretty good challenge. I think by the biggest concerns that obviously is your lack of ability to do business in the state.

Utah will actually take away your name. So if you have lost your good standing, your name becomes available. So if you don't realize that your report is past due when you've lost your name, you might be doing business under a new name. So it's definitely a big challenge.

Scott: Wow. That sounds like a lot of different challenges that people are facing. And I know, I want to loop Brian back in here because I know a lot of challenges that we do hear from clients understanding business license versus annual report, because many times we'll have a conversation with a client and they have a need for one thing when they need another one. Is there one defining feature that usually separates the two that a client can keep in mind?

John: Yeah. I would say that anything outside of the Secretary of State more of your operational, industry-specific, local requirements, that's what I would define as a business license. And then Lauren side, the Secretary of State as your authority to do business but we do hear business license in the industry. But from my perspective at least, not that it's right or wrong. I just consider that to be a business license more of the industry-specific side.

That's really the CSC view—outside of the Secretary of State, any other governing body, we consider it a business license regardless of what you call it. We're here to support as necessary.

Scott: Thank you. That was global expert John LaPalomento chiming in there. Thank you, John. Now, let's dive back into the world of Joe and where Joe is today. So as we mentioned, Joe had started expanding into multiple states. And now Joe had formed a partnership with a group that does work outside the United States down in Mexico. So now Joe needs to figure out how am I supposed to do business outside of the US and he engages a local law firm. And John LaPalomento, our expert in Global Subsidiary Management is going to have a quick discussion with you about some of those consumer concerns.

John: Sure. I love Joe's story because so many of our clients started as small businesses and grew and grew tremendously. Every big business that you see around the world started at some point in time as a startup. So this is certainly near and dear to our heart and very similar to the CSC story.

Moving across to state borders is one thing, but when you're still in the United States there are lots of similarities. Though as Lauren pointed out, many differences as well. Once you break out of the United States and move into international territory, things are very different. And one of the biggest challenges that we hear all the time are companies who are considering their international needs similar or having similar needs to their domestic needs.

I get calls all the time asking if we can be the registered agent in Mexico or Italy or France or Australia or Brazil for that matter. And quite frankly, that's not the need. So really what it comes down to is an understanding of doing business outside of the United States. The need in Joe's case as we continue with Joe's story crossing the border to the south in Mexico, the need really is for corporate secretarial functions, and that's fairly universal around the world but then again, moving from Mexico to different jurisdictions there are substantial nuances from jurisdiction to jurisdiction in terms of the needs.

In Mexico, Joe might not be used to having some of the filings that are due. Frankly in Mexico you're going to be required to have a physical presence for a local company. There are branch options or opportunities but frankly from a tax standpoint, that doesn't make a lot of sense. It's an anomaly for us to see a branch or farm registration in Mexico.

So, assuming that guidance has pointed Joe towards forming a local company in Mexico, instead of having an annual report and a registered agent need, he now has a reason to have or a requirement to have an annual general partner's meeting and associated filing.

There is an annual return which we can kind of identify as an annual report the way we talk about things here domestically, but then aside from that report there's also a report that gets filed with the National Registry for Foreign Investment in Mexico and there's an annual registration renewal with the Mexican Entrepreneurial Information System. To couple it even further, of course, there's always challenges with regulation changes when working internationally.

And just as mentioned domestically here, it's typically not as simple as receiving an e-mail from somewhere. There can be significant challenges in terms of language barriers, in terms of time zone challenges, and it all compounds when you talk about working in multiple jurisdictions. So while Joe is right now just working in Mexico as Joe's business grows and cross additional international borders now you're duplicating, triplicating, and so on your efforts to maintain these registrations or filings.

Big piece of this is managing multiple vendors. So, Scott, I think you mentioned that Joe is going to initially be working with a law firm in Mexico. There are different states in Mexico just like there are different states here in the United States, which would probably mean different law firms in Mexico. If there were some different sites where Joe was working.

And again, if we hypothetically think that Joe might be crossing into other jurisdictions around the world, now you're working with again, multiple vendors, multiple law firms, trust companies trying to pull this off together changing the way you work. And quite honestly in Joe's case, taking Joe away from revenue generating activity and making Joe a legal personality for his organization, it's a real challenge.

The other big part of this of course is the storage of data and documentation, which we've touched on through business license and annual reporting, and again, compounded and aggregated even more so when working internationally.

Now you have requirements for storing officer and director slates and shareholder registers much different than you see here in the United States, and bringing transparency and quite frankly, accurate data to that realm is a real challenge when working with third-party partners, partners who are billing you in hourly rates in different currencies, partners who might not speak English as their first language, it gets more and more challenging.

Scott: It definitely sounds like a challenge as a company grows from a US company to an international company. Just like it becomes a challenge being a local company going to a state, you know, multiple state company. You're going to dive into the way that CSC can help and how do CSC fit into the case of Joe and what we've discussed today. Really know one thing and John, Brian, and Lauren all touched on this is really the biggest part of CSC is the tie of service and technology.

Well, yes, we're able to provide a service in all of these different areas by helping you, assisting you with filing requirements, but on the backend we're able to treat transparency through our technology. So whether it'd be your business license requirement in your local town, your state-to-state annual report that has been filed or you need to get a copy of something international. And as John alluded, we can provide workable translations for our clients because that is often one of the biggest issues that clients face when they're working in jurisdictions outside the US.

So, now we're going to want to tie in and talk specifically about the way that CSC can help our clients. And want to start talking again starting at that local level, Brian could you describe how CSC is able to assist clients today with service and technology?

Brian: Sure. So, I'd like to break this into two areas, the service, we're going to have research and then filing services or renewables. And then the technology is going to be our portfolio. But let me start with the service side.

So from a research perspective, when you're expanding, whether that'd be maybe you're going to go from Philadelphia, Pennsylvania and you're going to go to Paramus, New Jersey, so you need to understand what's needed because you're going to open an office, you're going to do business in Paramus. To go back to Joe's idea, do you need a Bergen County requirement, a Paramus requirement, a Jersey requirement for the state?

We have a service that identifies that called new location research where you'll provide a completed questionnaire and the team will be able to research and say, "Does your business activity require licenses within the governing authorities that are going to be required for where you're doing business?"

For people who have existing locations, maybe you currently have a footprint in place. Maybe you're a restaurant and you want to make sure you're compliant in the restaurant hospitality industry, CSC can research and identify, do you have all the licenses in place? Do you have that outside cafe license? Do you have that range hood permit? Do you have the alarm, the fire, everything that's required, or maybe you're missing other types of licenses that are going to be needed for that location. You might need an open flame permit, believe it or not.

So we're going to identify what's needed, we're going to tell you what's missing, and we're also going to tell you what you filed that's unnecessary. What you over licensed. So that existing location research, and that's for all industries. So we have the new and existing.

Then from the renewal side, we can take all your license information, and we can take it and map it into your CSC account and provide a centralized place that you can access it. Our team on the backend will monitor them 60 days in advance, prepare them and file them. They'll be a filing questionnaire that we have so we know how to list and actually file the licenses for you. So again, as I mentioned, as we renew them and update them, it's all going to be managed in the centralize business license portfolio in the CSC dashboard. And so everyone will have access to it, and you'll have total transparency and centralization.

Scott: So, through our business license portfolio, that's being managed on the backend by CSC for our clients. And they have the one source, the one person they can reach out to for their business license question?

Brian: Correct.

Scott: That's fantastic. Now, tying now moving more to the state-to-state, and again, obviously state also comes in play with our business licenses, but back to the Secretary of State filing, Lauren, could you talk a little bit about how CSC is able to tie service and technology in for assisting clients with annual portfolio filings?

Lauren: Yes. Great. Thank you so much, Scott. Once you have signed up for the Annual Report Service, our team then completes a good standing audit to call a corporate health check. We manually go through a list of your entities in every jurisdiction and we determine if they are active or if they're inactive. We find out if there are any past due reports that are not filed or any reports that are coming due.

So once the audit has been completed we do ask that you review it just to ensure you were in the correct jurisdiction, and we didn't miss any certain state as sometimes simple variations of their name can cause it to be not on your audit.

So again, once that audit is competed you will then have one point of contact, your annual report specialist, who will reach out to you on a monthly basis as needed with information they need to file. Many estates do kind of ask some random questions. One of my favorite is West Virginia. They do ask if you are a scrap metal dealer. They want to know if you hire any veterans. So we do have to ask those questions every year as the reports are due. But again, you have one point of contact who's reaching out to you to ask these questions.

We prepare and file all the reports online that we can. Some states are still living in old times and do have paper forms, and we will send those to you for signatures. We ask if you'd send them back to us at timely fashion, that way we can file on your behalf on time to make sure we have no last fees or penalties.

On the technology side, all of your annual reports are housed in the CSC dashboard. You can go online and access those reports at any time. You can also go online and access what we call as a good standing calendar. This calendar will show in real time what their reports are that we're working on. So if you go on a calendar that says, "customer action required," that's kind of your little knowledge to know, okay, my customers service specialist, my annual report person is needing something from me.

You can see when reports are filled, you can click on the evidence, you can download it and save it in your own desktop or you can always access it on the dashboard.

Scott: Now as a point of clarification, so you've mentioned the CSC dashboard, Brian's mentioned the business license portfolio. Will a client need multiple logins or is this all accessible through the same piece of technology?

Lauren: It's all accessible through the same piece of technology.

Scott: So again, streamlined, one solution ties it all together for the client?

Lauren: One login, one password.

Scott: That's fantastic. Now, just like in the case of Joe, many of our clients are going international and having international needs. So, John, could you tie some things together up about how CSC helps clients with both service and technology from a global aspect?

John: Absolutely. And first I want to introduce a word that I don't think we've said yet today, and this is true not just for our Global Subsidiary Management Suite of services but all of the services that we're discussing here, it's really about automation. I think that's what everybody, probably everybody in our audience today is looking for that automation.

If you're looking at Excel spreadsheets now, you don't have automation. If you're manually handling filings now, you don't have automation, and that's going to tie together uniquely to CSC through all these pieces, both on the service aspect and the technology aspect.

We don't consider ourselves specifically a software development company, but our proprietary technology is automated in all cases, be it a business licenses, annual reports or of course, near and dear to my heart, Global Subsidiary Management.

So as you find yourself working across the country borders, let's talk from a service standpoint how CSC can help. First and foremost, I'm going to use a term that Lauren used a second ago, corporate health check. For your existing businesses in your global portfolio, we're here first of all to take their pulse and to understand where there may be some challenges. The corporate health check is a detailed review of publicly available in country. In some jurisdictions where walking people into the business registry and firing up the microfiche machines. In other jurisdictions, as the world gets a little bit smaller for us, we're able to do some things digitally online which is very nice.

But what we're understanding is current data, understanding slates of directors and officers, outstanding signing authorities and powers of attorney. We're understanding all of the dates and deadlines that the entity is responsible for from a filing and meeting standpoint. In some jurisdictions they're fairly rigid and understood already but in many jurisdictions they really come into focus, all of those dates and deadlines come into focus based on your formation date, based on your business activities and so on, and we're able to bring that with true certainty to you.

The other piece of the corporate health check though is understanding deficiencies. Where have you missed filings in the past? Where are you not to use an American term, where you're not in good standing? And of course, not only will report that back to you but we're also going to make you aware remedial actions that should take place.

We're going to suggest those remedial actions based on the common customs in the jurisdiction and not just specifically based on the results of the corporate health check. So that's an important nuance to certainly mention as well. The end-result of the corporate health check is all of the beautiful, clean vetted data that it will in an automated fashion, flow directly into CSC Entity Management.

Again, like Scott had pointed out, this is another piece of our technology but another facet of the CSC navigator platform, one login, one password, unlimited user access, and ultimately transparency in automation for your organization. Now that's going to example of an existing entity. We go through that corporate health check, but certainly we're also here to form new companies or file new registrations of foreign registrations around the world.

We're here to take care of that in a single project manner. So if you were forming companies and several different jurisdictions instead of working with law firms in 12 countries, you can work with one project manager here in Wilmington, Delaware at CSC. When it comes down to maintaining compliance again, here's where automation comes into play. And what it really is about is centralization and simplification of your corporate secretarial matters.

When thinking outside of United States, forget about the notion of registered agent. It's really not a concept in the majority of jurisdictions. We're here working centrally but in over 140 countries around the world to help you maintain your levels of corporate governance from a corporate secretarial standpoint.

But again, we're going to do the centrally, headquartered here in Wilmington, Delaware, giving you an American contact, speaking your language, billing you in your currency, working in flat rate cost, and most importantly, simplifying your workflows. Instead of working with numerous vendors and numerous jurisdictions we simplify that process.

We do have hubs for the service out of our London office and our Hong Kong office. So if you're looking for global coverage and customer support, we have the ability to do that. And we have many offices around the world. And again, our leveraging our services in over 140 countries. We're here to act as an extension of your legal department.

This concierge level of support allows us to really quarterback your corporate secretarial efforts around the world, most commonly focusing your needs for annual general meetings, drafting those documents and dual languages, as Scott had pointed out, handling the filings associated with such meetings, working with your, what I'll call loosely your annual report types of requirements around the world, your annual accounts, your confirmation statements, your annual returns.

We're going to work in many jurisdictions to act in a domiciliation capacity, specific to registered office needs which is quite a bit different than registered agent. But in jurisdictions where there is a registered agent need to required, of course, we consist there as well.

You're not limited to just those day-to-day regulatory filing needs as well. You can reach out to your team here in Wilmington. If you have any type of change management, change of officers and directors, formation of new companies, dissolution services, directing a share, transfer, and more.

And we're also very flexible with this premium level of service. If you have a certain weight you like as your organization like to do things, if you do have different contacts around the world, maybe controllers or other legal personnel who do have a hands-on approach, frankly, if you're more decentralized, we have the ability to conform to the way that you like to do business, but we're here to make it easy.

Again, from an automation standpoint and moving to technology within our CSC Entity Management solution, as a standalone platform is award winning technology recognized by the readers of The New York Law Journal the past six years at the number one at the number one entity management platform available. But when coupled with our Global Subsidiary Management services, it really does kick it into overdrive, automating everything that we draft for you, having documents flow into the system in the proper minute book organization using the naming conventions that you're comfortable with and have disclosed with us. We're here to make changes to the database driven information when we've impacted that data and so on.

Complete automation, regularly scheduled conference calls with your team typically monthly or bi-weekly depending on the time of year and your needs, and a complete understanding that your needs are different than other clients' needs or maybe an entity within your portfolio has different needs than your other entities, we're here to be ultimately flexible, to centralize your needs, and to capture the data in a transparent way.

There's a lot more to that. We certainly would offer for any of these disciplines that we're talking about today, we would offer the ability to have conversations with us through your . . . with Scott's team, your customer solutions manager if you are already a client of CSC and if you're not, you're just kicking the tires here today, we encourage you to call and we'll be happy to get you contacted by one of our awesome support team members.

Scott: Thank you, John. That's certainly talks very in-depth about what is needed today outside of the US and what CSC can offer. So I think that just leaves one final question when people are with our audience today, why CSC? You know we've talked about all the different ways that CSC assist our clients today, all the different disciplines that we do have. And so why CSC? And let's look here at again, talking about the example of Joe's Construction. So, why CSC?

We're here to create a simplified streamlined solution to provide your organization automation. And we're able to do this as you see. You know, Joe was fortunate. He reached out to CSC. He reached out to a member of our customer solutions team here to look for the best needs of them. And he was able to reach out to CSC and connect through our annual report specialist, our business license specialist, and our global project managers to make sure that whatever needs that they have are able to be handled.

So, again, I'm going to kind of bring the whole group together here and kind of talk about those six questions we posted here at the very beginning. So, when we talked about at the beginning about the assurances that your current process offers your organization, Brian, I'm going to bring you here first. So, when a client uses CSC and they partner with CSC, what kind of assurances are we providing our clients?

Brian: We're assuring them first of all, that we're going to not miss their files when they start their filing process 60 days in advance, which is going to ensure actually that they don't have any fines or penalties that result of it because the . . . actually, in some extreme cases with licensing, you could actually have locations closed, you could have them shutdown, you can have people actually arrested, believe it or not.

And I know that sounds wild, but sometimes you can't even bid on opportunities if you're launching a product, if you're not in compliance, you might not be able to do that. So, our assurance is really are to streamline and keep that workflow guaranteed, so to speak, to make sure those things don't happen in the licensing front.

Scott: And that's the same thing that our annual reports team is able to provide, that same kind of assurance?

Lauren: Yes, definitely. Your annual report teams does file your reports about 30 to 45 business days in advance of the due date. They will file the report on your behalf with the information you provided them. So it's pretty streamlined, pretty piece of mind that your annual report specialist has your back as far as your state compliances.

Scott: Now, the second question we posted to everyone was, what is your company currently have as far as, do you really have a budget for your fees, penalties and other losses? Now, I know that there's a bit of ridiculousness to this question because no one has a little space on their budget that says, here's money to cover all the missed filings we're going to do. Now, Lauren, you had touched in Wisconsin I believe you said, it can be up to a $10,000 fine?

Lauren: Wyoming actually.

Scott: Wyoming, I apologize, sorry. Now, are there other states that have had these fines that are potentially out there that the clients could have to . . .

Lauren: Yeah. Definitely. So, Delaware is a great example. If you are a minute late, if you pay your Delaware tax at 12:01 p.m. you are instantly hit with a penalty as well as 1.5 interest for every month you are late. So a lot of companies are, we call these tier two fines that take Delaware $250,000 a year. So if you did not pay your Delaware first quarter tax that is due on June 1st, that's $100,000, you are instantly hit with that 1.5 interest on that $100,000.

Scott: Wow. That is a hefty fine that many companies or many individuals don't want to burden. And I know at the local level, that's the same Brian, but John, as far as internationally. I can only imagine with all the international requirements that are out there that the fines and penalties only grow bigger and harsher?

John: Yeah, they get much more challenging. I mean, frankly sometimes just the currency conversion could be against you in many jurisdictions. But frankly in many jurisdictions there's a need for local representation or even local directors in country. Sometimes there's personal liability. There's many jurisdictions, I'll give you an example. Like in Australia, there is a requirement for a local director. If that's something you're not able to fulfil, CSC can assist. That local director takes on personal responsibility even when taxes aren't filed properly.

That local director is assuming personal responsibility as host to the parent company like it is in many jurisdictions. The important thing to know is that, you might not have . . . you as an international company might not have a complete understanding of what has to happen around the world, and at the very least, CSC can be a trusted partner to set you up to succeed.

Scott: Wow. And that's definitely something very important to think about when you thinking about streamlining, simplifying and looking for some kind of automation to avoid putting someone who isn't even responsible for the filing in jeopardy.

Now, the next question we posed was as your organization grows and you're transitioning your responsibilities the nice part about CSC is, when you partner CSC you have you know, over 25. We have over 2500 employees with CSC.

And when you partner with CSC, that's basically giving them access to that team. Now Brian, from a business license standpoint, I know there's a lot of challenges taking on for a new time if you're an individual, and maybe you've never done business licenses. Our team, they're well trained, their constant work handling any type of training on that side?

Brian: Right. So, when they're talking about industry-specific licenses there are so many unique requirements that are related to it, especially when you're dealing with a lot of regulated industries that trying to train somebody to go through it, they really have to experience it and go through the mud.

So if you have CSC do it, you don't have to worry about the transition period, you don't worry about things getting missed. We have a team, we do work in all industries. Whether it'd be insurance, real estate, hospitality, engineering, architecture, financial services, you don't have to worry about having somebody learn a new industry, we are here to do that for you.

Scott: And kind of talking again about learning and training, John, you had mentioned our entity management solution. When a client has our entity management solution, say one person is transitioning into a role and now, do we put that onus on the client to learn the system or are we willing to provide the training that they need?

John: You know, it's sort of behooves us and our clients to have access to training for our technology. We want all of our clients and all of your employees frankly to feel comfortable when utilizing our services and systems. So we're here to train you. Unlimited training, no cost for training and keep in mind, this is for an unlimited number of users, so there's no cost per seat license, there's no cost per user. You can assign very granular permissions. You may in some jurisdictions have third parties who could benefit from accessing data directly in the system but we're all for it.

Scott: Excellent. Now, the next three questions do kind of again tie in with technology and how companies currently use them. So, we talked about today, how our business license portfolio system is a system that is able to give transparency to client. Now, what other abilities as a portfolio . . . you've mentioned earlier that they have access to the licensing on there. So, say someone's on a job site and they need to get a . . . inspector shows up and they need to present their business license, how simple is that for someone to have access to and get it to someone on the job site there?

Brian: Yeah. So Scott, in that scenario, as long as you have an internet connection you can login. You would actually be able to select the license through either e-mail it to whomever you need to see it on their phone or you can e-mail it to your office locally there. We will actually if you need us to send the original to a specific location if they need it as well. But as long as you have an internet connection, you can e-mail server if you need to, you can log in and see it at any point in time.

Scott: So, again, complete transparency through there, and that will help our client be able to make sure that their licenses are up-to-date, especially through the fact that we're providing the automation and handling what they need for them.

Now, when it comes to tracking the company's portfolio associated, maybe not just with the licenses as mentioned here in five but also other filings, if a client, I know sometimes that the state level and annual reports handles, you know, the filling maybe online or maybe hand-filed documents, on the backend of the Secretary of State, it's then entered in manually a lot of times. Is that correct? That's my understanding.

Lauren: So once we get the filed evidence from the state, we do upload it right away to CSC Global to the navigator.

Scott: So, I specifically worked with a client once who had add an example that state then told them they were late. They reached out to CSC and we pulled out the filling that we did on time, advancing everything. We were able to help get everything straightened out with that client with the jurisdiction in those cases?

Lauren: Oh, definitely. I actually hear that a lot. A lot of time states will say, "You never filed this report. We never received it," and we will have the evidence, "Here is our stamp copy from you. Here's the receipt that we paid." And they go, "Oh sorry about that. All right. Your fixed now with just a click of a button."

Scott: And that's something that being an industry expert allows us to know how to fix time without taking up any additional time from our client. Excellent. And then the final question to pose before we open up the floor to your questions are, when it comes to storing, managing your minute book, important filings and other corporate data, John, again, to tie back into the entity management system which is a crucial aspect of our global subsidiary offerings, you had mentioned that it comes in certain jurisdictions, it's very important to have access to the minute books.

John: Absolutely.

Scott: How easy is it for a client to access it? As easy as Brian mentioned with our licensing?

John: Yeah. I mean, frankly it's the same technology. And Scott, you've done a great job of tying together. We're all sing kind of different coins terms but the bottom line is the CSC navigator is a central piece of technology with different components. And there is a component of course for entity management which is not specific to international entities.

Keep that in mind that, really, it should be a central source of truth for your entire portfolio of entities, fully understanding that I would think most of our audience today has some American entities as well. So whether this is a Dutch company or an American company, this system is going to allow you to store all of that information in there and have transparency over documents but as limited transparency as you wish.

You may have some users who need access to your business license portfolio, which should not have access to minute books or maybe should only have access to minute books for your Asia-Pacific region. You have the ability to assign those granular permissions accordingly.

Scott: Excellent. Thank you very much.

Anu: Great. All right. So we have run out of time. If we didn't get your question, we will contact you with the response after the webinar. Big thank you to our experts today. This is really great. Thank you for joining us. We hope to see you next time.