Online legal incorporation service CorpNet is one company that benefited from the increased amount of business formations in 2020 and 2021 fueled by the COVID-19 pandemic.
The Westlake Village-based company experienced a 120 percent growth in revenue throughout the past three years via its incorporation, LLC, DBA and dissolving services offered to entrepreneurs. Most recently, CorpNet has seen a significant increase in its business expansion, payroll tax registration and sales tax registration services, according to co-founder and Chief Executive Nellie Akalp.
The overall increase in business for CorpNet has resulted in the company growing from a 15-person operation in 2020, to a 65-person operation in 2021.
“We were a 10- to 15-employee business pushing to make ends meet,” Akalp said. “Now we’re a very fast-paced growing company, whereby we’re actually trying to keep up with (our own growth).”
The biggest hurdle for CorpNet now, according to Akalp, is finding the right talent that will enable the company to match the speed of the company’s growth and develop its customer service.
According to the Census Bureau, monthly total business applications in the U.S. have fluctuated around the 400,000 mark. For example, in September 2021, the bureau reported more than 431,000 new business applications. Just two years before, in September 2019, there was slightly more than 289,000 business applications reported.
“As the business gets bigger, there’s going to be more demand on the business, whether it be from a human resource standpoint, or a cost standpoint,” Akalp said, before adding that CorpNet is currently working on streamlining the efficiency of business filings and compliance processes.
CorpNet services start at $70 for a basic package, but typically clients choose the company’s all-in-one compliance package which starts at $249 plus state fees.
Akalp said customer service is one way that CorpNet stands out in the legal technology industry, which includes Glendale company LegalZoom.com Inc., which went public in June. She added that the expertise between her and her husband Phil Akalp, with whom she runs CorpNet, is another factor in the company’s success.
The company retains 50-state experts that limit outsourcing and keep CorpNet services and operations in-house. Around three-fourths of CorpNet’s clients are professionals such as CPAs, accountants and attorneys, Akalp added.