Beware of Compliance Mail Scams
by Peter Rizzo
Client Alert from CheckBook IRA
We have many of our clients getting notices from compliance companies about annual filings that are unnecessary – you can find out your filing requirements from your state’s Secretary of State website.
Many investors who use IRA-owned LLCs or Trust structures to make investments in real estate, private lending, cryptocurrency, and other alternative assets are surprised to learn how common LLC compliance mail scams have become.
Because LLC formation records are public, third‑party companies often monitor new filings and send official‑looking letters that resemble government notices. These solicitations are extremely common and can easily be mistaken for legitimate compliance requirements.
Why These Scams Target LLC Owners
When an LLC is formed, the filing becomes part of the public record with the Secretary of State. This allows marketing companies and scam operators to obtain the LLC name and mailing address and quickly send compliance notices that appear official. Many LLC owners receive these letters within weeks of forming their company.
Common LLC Compliance Scam Letters
Fake Annual Report Filing Notices
One of the most common scams claims your LLC must immediately file an annual report through a third‑party service. These letters often include official‑looking forms, urgent language implying the filing is mandatory, and fees ranging from $75 to $300. In reality, many states either charge a much lower fee or the filing may not yet be due.
Certificate of Good Standing Solicitations
Another common mailing offers to obtain a Certificate of Good Standing for your LLC. While this certificate can sometimes be useful—for example when opening bank accounts or registering in another state—it is rarely required for normal business operations. Many solicitation companies charge $100 or more for a document that usually costs $10–$25 directly from the state.
Labor Law Poster Notices
Some businesses receive letters stating they must immediately purchase workplace compliance posters. These notices often target LLCs with no employees, meaning the requirement does not even apply.
Registered Agent Change Forms
Occasionally letters are sent that resemble official state forms but actually authorize a change of registered agent to a private company charging ongoing annual fees. Signing these forms can unknowingly transfer your registered agent service.
Warning Signs of a Scam
Business owners should be cautious if a notice contains urgent language such as ‘Immediate Compliance Required’, unusually high fees, fine print stating the sender is not affiliated with a government agency, or payment instructions directing you to a private company rather than the state.
How CheckBook IRA Clients Should Handle These Letters
- Do not immediately send payment.
- Review the notice carefully for disclaimers indicating it is a solicitation.
- Verify the requirement directly with your Secretary of State website.
- Contact our office if you are unsure whether the notice is legitimate.
We are always happy to review these notices and help determine whether they represent a legitimate compliance requirement or simply a marketing solicitation.
Final Thoughts
LLC compliance scams are extremely common, especially for newly formed entities. The good news is that they are easy to avoid once you know what to look for. If you ever receive a notice that looks suspicious, contact us before taking action.
— The CheckBook IRA Team
