Rejected documents cost filers valuable time and money. I hope that you’ve had the opportunity to review our previous blog posts addressing common mistakes on UCC1 Financing Statements and UCC3 Change Statements. In this post, we will discuss common reasons for the rejection of Corporate Documents.
A Corporate Document can be rejected for a variety of reasons. Here is a list of some common reasons a state might reject a Corporate Document:
Name not Available
States will not allow multiple active entities to hold the same name. If your chosen name conflicts with an existing entity, the state will reject your document. To combat this issue, many states allow filers to check the availability of and reserve their name prior to submitting documents for filing.
Document is of Poor Quality
The filing office will refuse a document that is not legible. Please note that the definition of a legible document is evolving as technology advances. Presently, most states will reject a document that, while legible in hard copy form, will not scan well into their electronic database.
Each Corporate Document has specific signatory requirements. Most states will now accept a non-original signature, but a document that is missing a required signature will always be rejected.
Proper fees not Included
A document will be rejected if the proper fees do not accompany it. Keep in mind that some states have add-on fees above the actual filing fee. These additional charges may include a counter fee, prepayment of taxes, expedite or special handling charges, certification fees etc.
In closing, remember that each jurisdiction has unique and specific filing requirements. Please be sure to read the form’s instructions carefully. If you are stuck, it is advisable that you speak with an attorney or contact a private service provider with expertise in the filing of Corporate Documents.