In life, getting rejected stinks.
When preparing your corporate documents, not filing timely or properly jeopardizes your “good standing.” Getting a filing rejected outright wastes your valuable time, and can even chalk up to a financial loss.
A rejection is not the end of the world, but there are significant implications for your business.
1) Your attention to detail must be superhuman.
Each state’s forms differ by fields and language. You must complete the form accurately. We’ve seen filings rejected due to a misplaced comma! You must also conform to the state’s precise requirements. South Carolina, for example, requires original signatures on all filings.
Filing with the state is often tricky, as well. Occasionally, you must file an initial report, or a cover letter. In Pennsylvania, you won’t get far without a docketing statement. In California, if you don’t include a self-addressed envelope, you won’t get anything back.
Several states offer online filing. In others, knowing whether to mail, fax, or even deliver in person can save you days or weeks. Always know the correct division, address, or fax number to send your documents.
The key is research. Learn your state’s requirements, which form to prepare, and how and where to file. As a business owner, however, your attention is probably needed somewhere else. If corporate filings are bogging you down, consider hiring someone to prepare the documents for you.
Still less painful than this.
2) You can literally lose business
At the very least, you lose valuable time. In filing documents, you must deal with the state’s processing time. If you get rejected, you’ll have to resubmit, which essentially doubles the time you have to wait. Maryland normally processes filings in eight weeks. Can your business afford to wait four months?
Many businesses, particularly construction and general contracting companies, register or foreign qualify in order to get a state license, or to compete for a job or contract. They need that license fast. By getting a filing rejected, the firm delays getting the license by weeks, and can lose thousands of dollars in business. For a small business, this has a major impact on the bottom line.
3) You might do everything right
You might have filled out the form and submitted it correctly, and the state still rejects it! We’ve seen it happen.
While this is uncommon, state document examiners do make mistakes in reading and processing your filings. They are human, too. In those cases, you’ll need to contact your state, and point out their mistake. In addition to adding frustration, this takes more of your time as you figure out whom to contact, and how to get the error fixed.
We work closely with state agencies, and know the best way of resolving these issues. Using us to manage your filings saves time, and gets your business registered faster.
As always, it’s better to be safe than sorry. Be patient and thorough in filing, or let us manage the process for you.
Have you gotten filings rejected? How did it affect your company? Share your experiences below.