Transfer agents are most commonly associated with publicly traded companies. Nevertheless, they are not limited to working with public firms. In fact, it is also common to find transfer agents assisting private companies in one form or another. See why you may need a Private Company Transfer Agent.
Corporate Record Assistance
All businesses need accurate records to function properly. Private companies are not immune to this. As with public firms, private companies offering shares need to meet certain requirements. This includes maintaining a complete record of shareholders and a history of transactions. It also requires tracking dividend payments for tax filing, and the solicitation of proxies for votes.
A lot of private companies begin issuing shares through crowdfunding platforms. Yet, this is not as easy as it seems at first. Hiring a transfer agent also means that your firm can be exempt from some of the reporting obligations. Thus, working with an agent can help you become more efficient. In fact, the SEC even recommends that private firms use a transfer agent when issuing shares through crowdfunding.
Access to Expertise
How much do you really know about administering shares? Probably not as much as an actual private company transfer agent. Therefore, it is a wise business decision to incorporate a transfer agent into your business operations.
The End Goal
All companies that seek a transfer agent are really trying to reduce risk. These agents help achieve this goal by expertly managing records. In the end, the cost of hiring an agent is worth it!
For more information about hiring a transfer agent for your business, contact EquityTrack by visting https://www.equitytrack.co/ today.
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