In most states, filing articles of incorporation (or organization) is a simple process —document filers fill out a form, collect a signature and send the document off to be filed. Corporate filings get rejected often, however, and it is usually for errors that are easy to catch. Here are three easy tips to help guard against rejection of your business formation filings.
Check Name Availability
A new business must have a unique name. If your chosen name is the same or deceptively similar to an existing entity, the state filing office will reject your document. To assist you in choosing a unique name, most states will allow you to check the availability of the name you wish to use prior to submitting your paperwork. Then, if the name is available, you can reserve it for your exclusive use. Please refer to our previous blog post, “Why Reserve your Business Name?” for more information on name reservations.
Aim to Meet the Minimum Requirements
Another best practice is to aim to satisfy the minimum requirements for filing formation documents without elaborating or providing additional information. In some cases, providing too much information can be a cause for rejection. For example, while some states require officer and director information to be included in the articles, others will reject for its inclusion on the basis that the proper way to communicate officers and directors is on the statement of information or annual report form.
Follow Conventional Standards
If the state provides a fillable form for the type of document your need to file, read the instructions carefully. For some filing types, however, there are no special forms; some require filers to create their own formation document according to certain specifications. If this is the case, look to the state’s website for a sample of a drafted document. Don’t get too creative here. Whenever possible, draft your document using the same verbiage as the sample as many states have required statements that must be included verbatim to avoid rejection.
First Corporate Solutions customers work with a designated Account Manager with expertise in the filing of business entity documents. Our filing experts can provide you with the appropriate form or sample document and offer guidance on subsequent filing requirements.