SOURCE: CT Corporation

CT Corporation

April 04, 2011 08:48 ET

Small and Medium-Sized Businesses Experiencing Major Disruptions With State and Local Governments' Shift to Electronic Communications

CT Corporation Advises SMBs on How to Adapt to This Change While Minimizing Operational Impacts

NEW YORK, NY--(Marketwire - April 4, 2011) - Many cash-strapped state and local governments are transitioning their traditional, paper-based communications sent via the U.S. Postal Service (USPS) to email and electronic forms to save money. This shift is causing significant operational disruptions with some small and medium-sized businesses (SMBs), which are unprepared to handle the drastic change in how they receive, file and stay up-to-date on business compliance requirements. According to CT Corporation, the leading provider of Corporate Business Compliance solutions, SMBs need to be smart about how they track and submit compliance information with an increasingly digital government to avoid audits, steep fines or worse. CT Corporation is part of Wolters Kluwer Corporate Legal Services.

Certified mail sent through the USPS was always considered the "gold standard" for all legal and compliance notices from state and local governments. Today, with increased pressure to cut costs, governments are switching to email and electronic filing forms quickly and in droves. Yet, this seemingly straightforward transition is not an easy one for some SMBs. Many are finding their businesses disrupted as they scramble to change the established, paper-based processes they used to both send and receive business compliance information -- and remain in good standing -- with the government. 

CT Corporation has compiled advice for SMBs as they work to keep their businesses running at full speed while creating new processes and infrastructures to support state and local governments' move to email and electronic filing. 

  • Think About Your IT Infrastructure: Creating a secure digital environment will become a requirement to protect sensitive corporate information that is moving outside of file cabinets and into the digital world. The level of technology infrastructure required is sometimes a tall order for SMBs from a resource perspective. Many have turned to a third party to securely manage and protect their business compliance processes and government communications from start to finish. 
  • Ensure There is Always a Paper Trail: As more SMBs file documents electronically, the onus is on them to maintain an air-tight paper trail, since most government websites do not retain confirmation information. Whether SMBs do it themselves, or bring on a third-party partner to do it for them, managers have to take every measure possible to ensure that their records are retained and protected in the event the government makes a mistake.
  • Prepare to Deal with Privacy Issues: Email addresses submitted to governments will automatically become public record. Managers at SMBs now need to think more carefully about what email address they will provide, and the potential spam and privacy issues that will result from having that information in the public domain. An alternative is submitting an email address of a registered agent who will be able to provide a business with a permanent email "buffer" for all government communications.  

"Mail from the government doesn't necessarily mean something from the USPS anymore; it can now be an email in your inbox while having your morning coffee," said Diane K. Brown, executive vice president and general manager, CT Corporation. "While the government has finally caught up with the way most businesses communicate, most SMBs are completely unprepared to receive and file compliance information this way. Whether they take on and keep up with the new communications and filings themselves, or bring in a partner like CT Corporation to manage it for them, SMBs need to tackle this head on. It is not a trend that will fade away."

About CT Corporation
CT Corporation is the highest quality provider of Corporate Business Compliance solutions. Its offerings enable law firms and corporate legal departments to manage statutory representation for all their entities, complete corporate and secured transactions and maintain compliance as required by state and federal law. For more information, visit CT Corporation is part of Wolters Kluwer Corporate Legal Services.

About Wolters Kluwer Corporate Legal Services
Wolters Kluwer Corporate Legal Services is a business of Wolters Kluwer, a market-leading global information services company with annual revenues (2010) of EUR 3.6 billion and approximately 19,000 people across Europe, North America, Asia Pacific and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Visit

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    Wolters Kluwer Corporate Legal Services
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    Ashleigh Egan
    Articulate Communications Inc.
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