Inspired Resource LLC has been active for a couple of weeks, and this blog post presented itself just a few days after becoming official. New business owners should be aware of targeted business scams – or at the very least, pressure to purchase items that you don’t really need. The story below is my recent experience.
Oooh – I got mail!
I received two pieces of mail via USPS addressed to Inspired Resource, LLC. Very official looking, one with “IMPORTANT – OPEN IMMEDIATELY” and “BUSINESS MAIL – TIME SENSITIVE” stamped on the front.
The first letter, from “IL Certificate Service”, caught my eye as I have not heard of this particular organization in the time I’ve been running my sole proprietorship. Maybe new requirements are in place for an LLC, so I opened it right away. The IL Certificate Service letter itself is one page, includes a “Document Number”, “Notice Date”, “Please Respond By” deadline, and includes the following language:
“Your Articles have been filed with the Secretary of State and are complete. You have one step left in order to attain your elective Illinois Certificate of Status. Below is a form for your registered business… An Illinois Certificate of Status is issued by the Secretary of State and may be required for loans, to renew business licenses, or for tax or other business purposes.”
The Certificate of Status fee is $87.25, payable only by check or money order. Listed in smaller font at the end of the letter is “This is not a government agency”. Sounds important – I was looking into opening a business checking account, but I noticed the keywords ‘elective’ and ‘may be required’. Hmmm, I should probably investigate this further.
Labor Poster Compliance Letter
On to the next letter, from the Labor Poster Compliance. Similar in design, this form-like letter has an “ID” number, a “Respond By” date, but this one includes official sounding language, such as:
“Your business is required by Federal Law to post a current compliant labor law poster in the workplace… Pursuant to Federal Law 29 USC Sec. 666 (i) & 29 Sec. 2005 penalties and risks of non-compliance with posting regulations can lead to potential fines.”
The fee for the labor law poster is $90.25, again payable by only check or money order. Both letters included a contact phone number for questions. Instead of calling, I thought I would simply search the internet to see if any government agencies can provide some insight, as I had my doubts these letters were as serious as they appeared.
Enlightening Search Results
Searching “IL Certificate Service” resulted in a link to the Office of the Illinois Secretary of State. The first item listed on the “Scams” page is the IL Certificate Service, noting that this letter is a solicitation, and businesses are NOT required to have the form for loans, business licenses or tax purposes. On the same ILSOS page there’s a reference to a LLCS-Labor Law Poster scam, which isn’t the exact company who sent my letter, but the approach was similar. The ILSOS site recommended visiting the U.S. Department of Labor website regarding Labor Law Posters.
Labor Law Poster Info
It is true that many companies need to post Labor Law requirements. Fortunately, the U.S. Department of Labor has a nice website where you can answer a few simple questions to find out your posting requirements. To learn more about each poster type, visit www.dol.gov/general/topics/posters, or to find out which posters apply specifically to your business, visit the elaws Advisors First Step poster advisor tool.
Scam vs. Solicitation
Please note, I am not stating these companies are doing anything illegal or that they are somehow not legit. If I responded and paid the fees in the letters, I probably would receive the pieces of paper as promised. However, new businesses should be aware that the wording and sense of urgency/compliance in these letters gives an impression that these items are a required, mandatory part of operating a business – when in reality these items are solicitations.
What to Watch For
Here are other factors which led me to believe these letters were a little suspect:
- The sense of urgency was a red flag – similar to phishing emails, they want me to act right away by including urgent wording and giving me a “deadline” to respond. Instead, take the time to research the request to verify its legitimacy.
- Neither company’s letter included a website to learn more about them, or to place the order online.
- I have a hired registered agent for my LLC, acting as my official point of contact. They’re responsible for receiving crucial documents from the Secretary of State, or items such as a lawsuit notice or official state paperwork. I chose to hire a registered agent as they would be consistently available during normal business hours at a specific location (which I may not be), to accept significant paperwork. Therefore, my home address is not where crucial documents would be sent.
Inspired Resource LLC 