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Reno company sees revenue triple as LLC formations surge

Inc. Authority, a Reno-based company that offers free online LLC registration services, recently expanded into a 30,000-square-foot office building on Vassar Street.

Inc. Authority, a Reno-based company that offers free online LLC registration services, recently expanded into a 30,000-square-foot office building on Vassar Street.
Courtesy Photo

By Kaleb Roedel

Wednesday, May 5, 2021

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The coronavirus crashed the economy and destroyed jobs. It also propelled many Americans to create their own businesses.

In fact, nearly 4.5 million business applications were filed in 2020 — the highest number on record, and an increase of 24% from the year before, according to an analysis of Census data by the Economic Innovation Group.

A company headquartered in Reno has witnessed the surge of U.S. business formations firsthand.

Inc. Authority, which offers free online LLC registration services, has been flooded with entrepreneurs from across the country looking to become their own bosses.

“Those millions of people who lost their jobs between March and June of last year figured out that they needed to put food on the table and pay their bills,” Greg Martin, president of Inc. Authority, said in a phone interview with the NNBW. “Many of them incorporated businesses. Whether those were things they’ve been doing as a hobby up to that point, they decided to get serious about and incorporate. Or, they had been doing something maybe as a sole proprietor on the side and figured they needed to incorporate and actually turn it into a business.

“So, we were the beneficiary of that turn toward entrepreneurship. From the second half of March of last year through today, there has been nothing but an upward trajectory.”

Upward, indeed. From March 2020 to March 2021, Inc. Authority tripled its revenue, Martin said.

The company’s biggest spikes in business have correlated with the periods when federal stimulus checks have been distributed, said Martin, adding: “A lot of people decided, gee, maybe I’ll let the government pay for my business to be incorporated.”

KEEPING UP WITH DEMAND

Which begs the question, how does Inc. Authority allow people to register for an LLC for free?

The company says it waives its service charges, labor costs and overhead. Entrepreneurs only pay the mandatory Secretary of State fees, which they would need to pay regardless of who forms an LLC for them, according to Inc. Authority.

Notably, the company, which has satellite offices in Las Vegas and Salt Lake City, also provides services for trademarks, revocable living trusts, business credit, website and marketing, business funding and business planning.

While Reno-Sparks has a budding startup ecosystem, Martin said Inc. Authority has seen “very little” of its business come from Northern Nevada. Much of the demand for Inc. Authority’s services, he said, comes from heavily populated states, like California, Texas, Florida and New York.

Inc. Authority recently partnered with star of ABC’s “Shark Tank,” Daymond John (pictured on the wall), who agreed to be a brand ambassador. Courtesy Photo

 

And to keep up with the demand, Inc. Authority has expanded its footprint and staff size. The company, which formed in Vegas in 2012 and relocated to Reno in 2015, recently moved into a 30,000-square-foot building on Vassar Street, where it houses 68 full-time employees — 18 who started this April. For comparison, Inc. Authority’s Vegas and Salt Lake offices combined house 17 employees, Martin said.

“We are using a temporary staffing firm to help us just because we’re growing so rapidly, it’s exceeding our ability, internally, to recruit,” he added.

To that end, Martin said he expects the company’s biggest challenge moving forward to be hiring the staff needed to meet the growth.

“We can only grow as rapidly as we can add quality members to our team,” he said.

BOOSTING ITS BRAND

Martin said Inc. Authority’s biggest competitor is LegalZoom. The 20-year-old company has more than 1,000 employees and is doing over $200 million in revenue a year, according to a Forbes report.

“They are the dominant player in our market,” Martin said. “So the question for a company like ours becomes, how do we differentiate ourselves?”

Inc. Authority’s answer: Partner with Daymond John, famed entrepreneur and star of ABC’s “Shark Tank.”

In Q1 of this year, Inc. Authority finalized an agreement with John to be a brand ambassador for the company. As such, the CEO of FUBU and The Shark Group will be seen on Inc. Authority’s digital platforms as well as the communications its sends to customers and potential customers, according to Martin.

 “Since we’re selling the products and the dream of entrepreneurship,” he said, “Daymond John couldn’t be any more of the embodiment of that through his work with Shark Tank and otherwise.”

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