Many companies give out stocks to employees and shareholders. While it is an excellent way to promote yourself from within, it also comes with a variety of regulations and confusion. Most people aren’t equipped to handle it themselves and hiring someone in-house can be costly. Therefore, it makes sense to hire a transfer agent that works for another company. They’ll ensure that you’re compliant with everything, such as the IRS cost basis regulation that was passed in 2011. They also make sure that you’re compliant with all SEC regulations, but you won’t have to learn all the new rules that crop up each year.
Records-Keeping
One of the best reasons to hire a transfer agent (outside of your company), is so that they are responsible for the records. Of course, they will likely send you information as necessary, as well as reports, but they will keep everything for as long as the SEC requires, which means you don’t need the space to do it yourself.
Handle it All
Your transfer agent will handle everything to do with the stock transfer process, which means you don’t have to do it. Plus, they will issue anything as necessary, handle corporate action processing, deal with shareholders and provide customer service, as well as deal with account maintenance, generate reports, manage audits, and more.
Your Branding Stays
Of course, you don’t want others to see that you’re using a third party because they aren’t likely to understand why. They may be worried that you’re merging with them or something else. If you hire the right team to help you, they will use your logo and all your branding materials. Your corporate image and identity will remain the same, and they will utilize that when and if they must communicate with your shareholders. Visit Colonial Stock Transfer Company, Inc. for more information.
