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 (equivalent to an organization, partnership, or LLC).
DCCA defined that there are some non-Hawaii-based corporations that ship solicitations to Hawaii-based corporations. They are saying, “Hey! Your enterprise registration goes to be due shortly, and renewing it’s required by legislation. Pay us $145 and it will likely be performed.”
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 during which the enterprise initially registered.
Now, these first two may not be actual issues as a result of companies like these might be performed by legit companies. Attorneys, for instance, become profitable serving to folks navigate by the legal guidelines and rules.
When responding to complaints lodged in different states like Oregon, these corporations’ attorneys made that declare.
However that results in the third downside with these corporations.
Look For Crimson Flags
The third downside is that these corporations (at the least those DCCA has recognized in its launch) should not themselves registered in Hawaii.
It additionally wants to offer some fundamental data such because the title and tackle of any individual in Hawaii to whom authorized paperwork might be delivered if somebody in Hawaii needs to sue it.
As a substitute, DCCA noticed that the businesses seem to make use of a mail drop as their firm tackle, which seems like they don’t need folks to seek out out the place their bodily location is.
With this third downside, the percentages of those corporations being legit service companies drop method down. A service enterprise that’s serving to shoppers observe 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 lively normal excise tax license.
Are they attempting to fly beneath the radar or what?
Firms like these additionally is perhaps attempting to become profitable by promoting any private data you give to them. And, in the event you give them monetary entry knowledge like a bank card quantity, you significantly must be careful.
Keep in mind that if it seems to be 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 towards it, working in a number of states beneath assumed names.
Keep in mind that if it seems to be fraudulent or questionable, it most likely is. Fraudsters and scammers are likely to omit sure data to keep away from being traced.
Search for these pink flags earlier than submitting any private data or funds:
- No bodily return tackle — only a P.O. Field.
- No phone quantity to contact a consultant.
- A non-corporate electronic mail tackle (equivalent to Gmail, Yahoo, Hotmail).
- A service price or an upcharge for credit score/debit card funds.