Understanding Electronic Filing in Your State

Many states offer electronic filing options for business registration. As more states finally move into the 21^st century (half-joking, of course), online filing will become the norm, and mailing a filing will become a thing of the past.

As you prepare to register your business, it’s important to know whether your state offers electronic filing, how to understand their online system, and even whether you should file electronically.

Does My State Offer Electronic Filing?

I’m not going to list them all – to check, contact your state’s Corporations Division, or give us a call. Here’s why:

States are adding online filing options constantly. For example, Pennsylvania just replaced its horrendous OBRI filing system with PENN File, a very pleasant system for domestic business registrations. This trend is sure to continue.

At the moment, some states offer online annual report filing, and that’s it. Others have the whole shebang, from business formation to licensing and everything in between. And, in these states, electronic filing is mandatory.

How to Use Your State’s System

As you’d expect, each state asks for different information, and has its own electronic filing system. With PENN File, you enter information exactly as you would on the paper form. Minnesota’s system collects payment, and asks you to upload a .pdf of the paper form.

Electronic filing can lead to fewer errors, and consequently fewer rejections. In most cases, you have the opportunity to review the filing before you submit. Rarely do you get the chance to save your work and come back, especially if you submit payment at the beginning of the process.

Don’t go into the electronic filing process blind. You don’t want to run into an unfamiliar term, or forget something, like having a registered agent in the state. We recommend you complete or at least review the paper form before filing online.

Should I File Electronically?

Yes.

If your state offers it, why wouldn’t you? It usually takes only a few minutes, and the state’s processing time is typically reduced. And, by not mailing a paper document, you’re saving trees. Win-win.

I can think of two exceptions. One is for complex filings, such as Articles of Incorporation with added provisions. Sometimes, an online filing system won’t allow you to attach separate sheets, or the online field isn’t large enough to type them all.

Second, in some states, the electronic filing system is either terrible or complicated. For example, South Carolina’s online system registers your entity with five state agencies at once. That’s fantastic, but not if you want to do just one filing, such as a Certificate of Authority application. Thankfully, this is an exception, not commonplace.

Electronic filing is a helpful way to register your business quickly. However, you’re still dealing with government forms, which can be confusing to the untrained hand. At Harbor Compliance, we file using the most expedient method available, including online filing and local document delivery. If you need a filing completed ASAP, give us a call, and we’ll be happy to help!