What is a Corporate Service Company?

What is a Corporate Service Company

When you’re in business, there are lots of new terms that you might hear. One of these might be a ‘corporate service company’. In this article, we will look into what one of these companies is, what it does for clients, and whether it could be useful for your newly incorporated business.

In addition, we will look at the alternatives to these corporate service companies that you might use.

What is a Corporate Service Company?

While it is the name of a business, a Corporate Service Company can also refer to a business that offers professional services to other businesses, normally larger organizations, although many are now helping smaller entities. They might also be known as a corporate service provider.

These professional services include marketing, accountancy, legal and consultations, etc. The idea is that the business can focus on the activities that it has expertise in and let others complete the tasks where they can do a better job than those in-house.

Sometimes, these services are priced on a retainer, where you pay an agreed monthly amount for services. Other times it can be priced as a one-off service, like a corporate formation business.

Advantages of a Corporate Service Company?

There are numerous advantages of a corporate service company. Here are some aspects that you consider useful.

Expert Knowledge

These individuals are normally people who have the experience and expertise to help your business. Those working in this company are known to be some of the best in the industry, with experience to cater for numerous scenarios.

Their knowledge can help many businesses find unique and valuable processes or ways of completing work.

Access to a Wider Network

Because these companies tend to work with significant numbers of companies, they usually have contacts across industries. So, if you’re looking for a specific skill set, set of supplies, or even contact in a geographic location, the corporate service company might have a contact for you.

It can help to reduce costs and improve a project’s profitability as a result.


Working with some of these companies can often mean you’re working with a prestigious organization. Therefore, you get a lot of credit for your brand name.

Disadvantages of a Corporate Service Company?

Despite the obvious advantages, there are also some significant disadvantages for the corporate service company. These are as follows.


You’re not just paying for the salaries and supplies used during the contract. You are also paying for their marketing teams, accounts, administrators, and probably, an expensive office building. Therefore, you will spend a lot more than you might otherwise.

Limited Face-to-Face

The larger the organization servicing you, the less chance you have of knowing who will complete the work. You might even have your work outsourced or perhaps done by trainees. This can impact the quality of the output.

You’re Just a Number

Unfortunately, you’re unlikely to be a big player, an important client, or high-value enough to be worth too much for some corporate service businesses. You’re a small client, and this might not seem too bad. However, it does mean that your negotiating power is limited, and they often wouldn’t worry too much if they lost your business. They could always replace you quickly.

Less Flexible Services

As a result of being one company in dozens of serviced companies, the services offered are normally set. There is little that is tailored to your specific needs/requirements. Therefore, you might need to try several potential companies to find the right service for your business.

Alternatives to a Corporate Service Company

There are always alternatives to a corporate service company. Most of the big names have used some of these alternatives at some point on their way up. Partly because these alternatives tend to be less expensive and offer more flexibility for the business owner. Here are some of these alternatives.

Learn the Roles Yourself

One option is to learn how to do some of the roles yourself. There are incorporation courses, marketing courses, accounting courses, and others that you can take advantage of. The cost savings can be the difference between profit and loss for many.


Freelancers can be some of the best options when it comes to small businesses. They have the knowledge, skills, and experience and are generally much more affordable. Many services can also be tailored to your specific needs.


Employees can also be a great option because they can work in your office with you to control more of their work and output. Hiring employees will require you to get an EIN, but if there is more than one member in your LLC, then this is a requirement anyway.

Final Word: What is a Corporate Service Company

A corporate service company is an entity that provides professional services to businesses to help them run their business. There are numerous types of businesses available, from accountants to marketing, and they have some value. However, some smaller businesses might be better off thinking about one of the alternatives to ensure they’re making the most of their money.


There are no comments yet. Be the first one to leave a comment!