Lately, our Division of Commerce and Client Affairs reminded folks of a news release. The discharge was directed to anybody in Hawaii that owns or has management of an entity (comparable to an organization, partnership, or LLC).
DCCA defined that there are some non-Hawaii-based firms that ship solicitations to Hawaii-based firms. They are saying, “Hey! Your online business registration goes to be due shortly, and renewing it’s required by regulation. Pay us $145 and it is going to be completed.”
The primary downside is that some folks suppose that the letter comes from a authorities company. It doesn’t.
The second downside is that the renewal for many entities doesn’t price anyplace close to $145. It’s $12.50 for many entities, and even much less for partnerships ($5) or nonprofit firms ($2.50). This price might be paid on-line at DCCA’s web site in the beginning of the quarter wherein the enterprise initially registered.
Now, these first two may not be actual issues as a result of providers like these might be completed by reputable companies. Attorneys, for instance, make cash serving to folks navigate by way of the legal guidelines and laws.
When responding to complaints lodged in different states like Oregon, these firms’ attorneys made that declare.
However that results in the third downside with these firms.
Look For Pink Flags
The third downside is that these firms (at the least those DCCA has recognized in its launch) will not be themselves registered in Hawaii.
It additionally wants to supply some fundamental data such because the title and deal with of any person in Hawaii to whom authorized paperwork might be delivered if somebody in Hawaii needs to sue it.
As an alternative, DCCA noticed that the businesses seem to make use of a mail drop as their firm deal with, which feels like they don’t need folks to seek out out the place their bodily location is.
With this third downside, the percentages of those firms being reputable service companies drop means down. A service enterprise that’s serving to customers comply with the legal guidelines shouldn’t be flagrantly breaking those self same legal guidelines themselves.
To make issues worse, neither of the businesses DCCA recognized seems to have an energetic common excise tax license.
Are they attempting to fly below the radar or what?
Corporations like these additionally is likely to be attempting to make cash by promoting any private data you give to them. And, in the event you give them monetary entry information like a bank card quantity, you critically must be careful.
Do not forget that if it appears fraudulent or questionable, it most likely is.
They aren’t solely an issue in Hawaii.
The Better Business Bureau has famous a sample of complaints in opposition to it, working in a number of states below assumed names.
Do not forget that if it appears fraudulent or questionable, it most likely is. Fraudsters and scammers are inclined to omit sure data to keep away from being traced.
Search for these crimson flags earlier than submitting any private data or funds:
- No bodily return deal with — only a P.O. Field.
- No phone quantity to contact a consultant.
- A non-corporate e mail deal with (comparable to Gmail, Yahoo, Hotmail).
- A service price or an upcharge for credit score/debit card funds.