I use a disappearing ink pen (available at any fabric store). I place a dot on the item at the center point of where my design will sew, then draw a line just underneath that (using a ruler, of course).
This gives me a better visual when I'm hooping, to make sure I have the item in the hoop straight.
Once it's on the machine, at the beginning of the laser trace process, I run the light along that line to make sure it's straight.
Yes, it takes a tad longer, but when you have something like just text on a shirt, 1/4 inch tilt is very noticable.
By the way...I remove the ink using by either spraying it with water, or dabbing it with a wet wash cloth.