Top Five Reasons for Rejected Formation, Qualification Filings

Reduce Corporate Filing Rejections by Avoiding These Common Mistakes

Whether establishing a new business entity or expanding operations into a new state, a rejected corporate filing can be costly, not to mention frustrating. What follows is an overview of the top five reasons for rejection of formation or qualification documents.

1. Name is Not Available
A new business name must be unique. When a business formation or qualification document is submitted for filing, the filing office will check the business name against existing entities in their jurisdiction and will reject a document that lists a business name that is the same, or deceptively similar to that of an existing entity in that state.

2.    Incorrect or Outdated Form
Business filings must be submitted on the appropriate form for that state and entity type. A filing that is submitted for filing on an incorrect or outdated form will be rejected by the filing office. Keep in mind, states frequently make changes to their forms; the form you used for a previous filing may now be out of date.

3.    Supporting Documents Not Included
In most states, a foreign qualification filing must be accompanied by evidence of the entity’s formation in its home state – usually a certificate of status, though specific requirements vary by state and entity type.  A state filing office will reject a qualification filing that does not include the required supporting documents.

4. Missing or Non-Conforming Signatures
States establish rules for who may sign certain documents and what additional information must be provided about the signer. A document that is missing a required signature or does not conform to the state’s signatory requirements will be rejected by the filing office.

5. Proper Fees Not Remitted
The state will reject a document if the proper filing fees are not remitted. Keep in mind that the filing fee may be only a portion of the amount due. Some states have additional fees due at the time of filing including handling fees, prepayment of taxes, certification fees, expedited fees and more.

CLAS Information Services can help!  Trust CLAS with even your most complex business filing projects. Our highly trained staff of corporate experts can reserve your preferred business name for your exclusive use and will perform a thorough review of your document prior to submission to help guard against rejection.  To learn more about our comprehensive suite of corporate services, call CLAS at 800.952.5696.

PA Bureau of Corporations Experiencing Technical Difficulties

Technical Difficulties Impacting Customer Service Levels

The Pennsylvania State Bureau of Corporations recently underwent a computer system upgrade. Since the upgrade, the Bureau has experienced significant technical difficulties that are impacting customer service levels and turnaround times.

Due to data quality concerns, the state is not issuing certified UCC searches at this time. CLAS is happy to perform an unofficial UCC search for you, but please note, the index date for unofficial searches will remain August 5, 2015, until the state has resolved its technical issues.

Processing times have also slowed for business filing requests, document retrievals and UCC filings.

For more information or to discuss anticipated turnaround for an upcoming Pennsylvania project, please contact CLAS at 800.952.5696 or connect@clasinfo.com.

October 2015 State Holidays and Office Closures

State Holidays and Office Closures

Please note state filing offices occasionally make last-minute changes to their holiday closing schedules. We will update this list as we become aware of any such changes.

Date	State	Holiday
Monday, October 12	AL, AZ, CT, DC, GA, ID IL, IN, ME, MD, MA, MO, MT, NE, NJ, NM, NY, OH,  PA, RI, UT, VA, WV	Columbus Day
Monday, October 12	SD	Native American Day
Monday, October 19	AK	Alaska Day
Friday, October 30	NV	Nevada Day

CLAS Information Services understands that your job doesn’t stop just because a state filing office is closed. Our online DIY Search and UCC eZFILE® systems provide users with anytime, anywhere access to perform UCC and lien searches, print online images and prepare UCC filings for submission as soon as the state resumes operations. Want to learn more? Contact Kacy Flowers at 800.952.5696 ext. 123 or connect@clasinfo.com. 

Delaware Early Hours and Cut-Off Times Extended

Delaware Early Hours and Cut-Off Times Extended Through 09/25

The Delaware Division of Corporations announced today that their shortened work hours of 8 a.m. - 5 p.m. EDT will continue through Friday, September 25, 2015, to allow for overnight maintenance and troubleshooting of their recently upgraded computer system.

Reminder: All 1 hour, 2 hour and same day service requests must be received by 1 p.m. EDT; all other submissions are due by 5 p.m. EDT.

Contact CLAS Information Services for help in planning your projects to avoid potential service delays. 800.952.5696 | connect@clasinfo.com

CLAS to Close September 7, for Labor Day

Happy Labor Day from CLAS Information Services

CLAS Information Services will be closed on Monday, September 7, 2015, to celebrate Labor Day, We will reopen for business at 7:30 a.m. PDT on Tuesday, September 8, 2015.

Please contact CLAS for help in planning your projects to avoid service delays. The CLAS DIY Search and UCC eZFILE® systems will remain available during the closure.

Observed annually on the first Monday in September, Labor Day honors the American Labor Movement of the late 19th century and pays tribute to the contributions and achievements of American workers.

We wish you a safe and happy holiday!

Five “Need to Know” Facts About Filing UCC Continuations

In order to maintain a healthy UCC portfolio, a secured party must carefully monitor UCC lapse dates and file timely Continuation Statements when a debtor’s financial obligation extends beyond five years. It is critical that secured parties manage this process meticulously, as a lapsed filing ceases to be effective and can cost the secured party its priority position to collect.

Determining when to file a Continuation Statement can be confusing. Here are five “need to know” facts to get you on the right track:

1. A standard UCC Financing Statement is effective for a period of five years from its date of filing.

2. Every UCC Financing Statement has a filing date and a corresponding lapse date.

3. To extend the term of effectiveness, a secured party must file a Continuation Statement prior to a UCC’s assigned lapse date.

4. A Continuation Statement can only be filed within six months of the UCC’s lapse date; a Continuation Statement that is submitted prematurely will be rejected by the filing office.

5. A filed Continuation Statement extends the UCC’s effectiveness for an additional five years from the date that the Financing Statement would have expired, not from the filing date of the Continuation Statement.

Did you know? Every UCC filing prepared and submitted through the CLAS UCC eZFILE® system is automatically enrolled in free lapse date tracking. As filings approach their lapse date, users receive automated continuation alerts to remind them to take action; on-demand continuation reports allow users to view a listing of filings set to lapse up to a year in advance. Contact CLAS today to request a free system demonstration! 800.952.5696 | connect@clasinfo.com

CLAS Celebrates 35 Years of Business!

CLAS Information Services Celebrates 35th Anniversary

CLAS Information Services is pleased to share that this week marks our 35th anniversary!

CLAS formed in Sacramento, California in 1980 and quickly became a leading provider of UCC and corporate due diligence services to local law firms and commercial lending institutions. Since then, CLAS has extended its reach considerably and presently maintains support facilities in Los Angeles, California; Dover, Delaware; Olympia, Washington and London, England.

To our valued clients, THANK YOU for your business and ongoing support. We owe our success to your loyalty and appreciate each order you entrust to us.

To learn more about the products and services offered by CLAS, visit www.clasinfo.com or contact us at 800.952.5696 or connect@clasinfo.com.