5 Ways Cybersecurity is Changing How LLCs are Being Formed Across the United States


Cybersecurity has become an inevitable point of concern in business these days. In 2023, a new SEC rule even requires public companies to disclose cybersecurity breaches. The degree to which cybersecurity now impacts businesses, entrepreneurs, employees, and customers cannot be discounted. 

In 2023, we can even see how it has impacted how LLCs are being formed across the United States. 

1. Further Adoption of Cloud Computing

Cloud computing has long been growing across industries for its many benefits. Although the cloud also comes with an increased risk of getting targeted by an attack, it also comes with advanced security and a built-in failsafe for sensitive data. You can easily restore or back up data as needed. Naturally, a huge chunk of LLCs is now choosing to adopt cloud computing as part of their operations.

This is pretty widespread across the country but California leads the charge in its adoption. With its strict regulation, the state already has 842 cloud businesses within its borders. Some of the fastest-growing cloud computing companies in 2022 are headquartered in California. This has made it much more accessible for LLCs looking to adopt the cloud as they launch. 

2. Increased Use of Professional Services

The increased need for cybersecurity measures has made new LLC owners warier to go about things on their own. There are plenty of services that handle major steps in the formation process with their own infrastructure and resources. This lessens the risk on the part of LLC owners and adds a layer of security and efficiency. 

You can see this in the way LLCs find the best registered agents in Georgia. The state allows commercial services to handle both the formation process and appoint their own professional agent to handle any service of process directed to a business. This allows LLCs to maintain their privacy while staying purely online as the commercial service manages these aspects and provides a different address. Since these responsibilities are handled separately and digitally, there is not as much threat of direct interference. 

3. Elevated Scrutiny for Online Filing

Experts note how the future of cybersecurity in the United States will inherently have a dark underbelly. Increasing vulnerabilities and more malicious actors are looking to attack more new businesses, which is a problem considering how much of business is done online now. 

Various states even promote online filing with their state secretaries’ respective websites. With this, the general feeling of wariness will find LLCs needing more scrutiny when accomplishing their requirements online. Just as there are many simplified solutions, there are also dupes, fake links, and injected malware that entrepreneurs will need to be careful with. 

4. Whole-of-State Cybersecurity

Thankfully, one of the changes happening is how the government and private sector are catching up to the bad parts. Just as cybercrime continues to expand, regulation is starting to crack down on these risk factors. Security Magazine noted that 2022 would see a spike in regulation, and this has definitely been proven true when looking at the laws that have come to pass in the year after. 

Whole-of-state cybersecurity has been a significant move for private companies and government bodies alike, which sees different levels of government and private sectors mitigate threats by sharing resources and information. Virginia is one of several states that have successfully executed such a setup. The Department of Elections actively works to share guidance with all jurisdictions and engages with small businesses (including LLCs) directly. 

5. More Players in the Industry

The rise in cybersecurity has also affected how many LLCs form in that industry. With the liability and asset protection provided by the nature of LLCs, a lot of cybersecurity companies are making a name for themselves and launching under this business entity. 

The Internet of Things is bolstering big data to new heights, optimizing productivity in different industries but also opening them up to new vulnerabilities. As such, demand is met with supply as America now has over 3,500 cybersecurity vendors.