What Is Entity Management?
Getting Back to Basics to Help Move Things Forward
If you have a business that is growing, you may be thinking about adding an entity. Also known as a subsidiary, companies will add multiple entities for various reasons. However, it is important that you have an entity management plan in place. Companies without proper entity management may find themselves grappled in chaos with limited control and visibility.
Entity Management at Its Core
Entity management involves managing a business’s important information in an organized system. The documents will be tracked and viewed by the company. Some of the information includes audits, mergers, reports, filings and fees. Entity management helps keep your business in compliance with all the jurisdictional requirements. The requirements can be federal, state, and local. You may find that paralegals, legal administrative assistants or others in finance or even HR regularly need real-time access to data due to receiving numerous requests for certain documents.
The corporation’s governance, compliance, and legal departments are typically involved or leading the charge. They handle requests for entity information, and they maintain the company’s data. They also allow multiple departments to have immediate access to the data. Another function is informing the board and management of governance matters. Entity management is a complex and dynamic system. Companies of all sizes may require the use of entity management to support growth initiatives or to achieve a competitive advantage. But the specific scenarios to create or dissolve an entity are varied depending on an organization’s overall goals.
Entity Management Solutions
There are plenty of tools and services available for businesses to use for successful entity management. Some companies will use a registered agent as the official point of contact for a business entity and to help maintain entity compliance with a state or jurisdiction including the inflow and outflow of information. There are plenty of software programs available to make entity management easier. Software systems provide efficiency with compliance alerts and document storage amongst other processes while being cost-effective. But it is rare that companies can achieve a single-source-of-truth for both compliance maintenance and processing software. That is the Filejet difference.
Filejet Is Driving Change
Entity management is considered mission critical and will require the right tools but also the right partner to be successful. Next generation entity management is creating a process and workflow that allows your organization to pick the best path forward. Whether that is complete DIY, partially supported or fully managed entity maintenance from a knowledgeable and available team of Filejet experts. We call that automation and we have developed a system that allows for the heavy lifting to be done for you automatically, every year in every jurisdiction. With Filejet, you have control and total visibility to your entities at any given moment.
If you are interested in learning more about creating a best-in-class entity management program for your business, contact us today.