Automated Legal Entity Maintenance for Things that Keep You Up at Night
The list of things that can keep an in-house lawyer up at night is a long one, populated by any number of potential liabilities and threats.
What they typically have in common however, is the dread of a detail overlooked or an unrecognized vulnerability. As every good lawyer knows, it’s what you don’t know that gets you into deep trouble.
And when it comes to legal entity management, the things you don’t know can spread trouble in multiple directions. Missing, out-of-compliance and orphaned entities have a way of creating problems that leach beyond the boundaries of administrative and compliance headaches. They create gaps that can pop up to wreck deals and leave your company exposed to added risk in litigation.
A 2022 Deloitte report examined the effects of entity management errors and gaps on mergers and acquisitions. Among the findings reported in a survey of prominent M&A attorneys, the report showed that entity management errors had the effect of:
- Driving sale prices down
- Increasing liability
- Inflating professional fees
- Putting company credibility into doubt
Against the backdrop of such risks, many new general counsels come into the job in immediate jeopardy – and the challenge of having to wade through a thicket of manual record keeping and outdated processes of entity management.
A Filejet survey of newly onboarded clients reveals what many of them are up against at the start. For many new general counsels, our post-onboarding entity compliance audit is a revealing look into process shortcomings.
Entity Management Risk by the Numbers
Among the gaps discovered in our audits:
66% of Filejet clients have out of compliance entities post-onboarding
44% of Filejet clients have lost or “orphaned” entities post-onboarding
98% of Filejet clients form new entities during the onboarding process
32% of Filejet clients are operating in states where they are not registered
Close the Gaps & Eliminate Legal Entity Management Risks
The good news in such findings, of course, is that identifying the gaps is the first step in reducing your risk. That’s why Filejet onboarding begins with a compliance audit that goes deep to identify all of your entities and ensure that you are in good standing and filings are up to date. We don’t stop there: an audit will also identify places where you need to create additional entities.
From there, an automated system of entity management ensures that such gaps are eliminated permanently with a reliable, transparent and collaborative platform where entity deadlines and compliance tasks can’t be overlooked.
Leave Entity “Maintenance Hell” Behind & Do Bigger Things with Your Time
A high-quality automated entity management platform does more than prevent risks. It saves money and time you can use to do bigger things. Imagine all the other legal challenges that can be overcome when you eliminate what one Filejet client called entity “maintenance hell.”
Filejet’s reliable, automated system of legal entity management solves for much more than compliance worries. It protects your budget from unnecessary penalties, protects your company from unnecessary legal exposure and frees your time from unnecessary administrative drudgery.
The Filejet Difference
Get off to the right start with your legal entity management processes. When you partner with Filejet, you have the expertise and help you need at the level of support you want. As the provider of the only entity formation and maintenance software in the U.S that is fully automated, organized and secure, Filejet lets you use our solutions to manage your own processes on an automated platform or take entity management off your plate completely.
Reach out to one of our team members to learn more about our options for ending your legal entity management challenges.