The year is almost over! If you are planning to start a small business next year, there is good news. You may submit your business paperwork now for a delayed incorporation filing in 2023.
What Is a Delayed Incorporation Filing?
A delayed incorporation filing provides entrepreneurs with flexibility in choosing the date when your business filings will be officially recognized with the state. This is regardless of when you submit the paperwork.
How Does a Delayed Filing Differ From Other Filing Types?
A delayed incorporation filing means you get to pick the effective date your company is in business. Other filing options include the following:
- Standard filing. This is basic filing for small businesses. Entrepreneurs complete an application specific to their entity formation, pay a filing fee, and submit these documents to their local Secretary of State. These materials may be submitted online or through the mail. Standard filing processes incorporation paperwork in the order in which it is received, so it might be several days, or weeks, until the business receives its official incorporation status.
- Expedited filing. This option allows entrepreneurs to submit their application documents to the Secretary of State and pay a slightly more expensive filing fee. This fee prioritizes their paperwork to be filed a bit faster with the Secretary of State. Generally, this means no more than a few days wait time for both online and mail-in documents.
Why Should You File This Paperwork At The End Of The Year?
The new year offers more than a fresh start to launch a startup. Let’s look at the benefits available when you choose a delayed incorporation filing.
Jump Ahead Of The Line
There is a narrow window of time left to incorporate a business this year. Attempting to squeeze in an incorporation during the last month of the year is difficult for most business owners. Many Secretary of State offices receive a great deal of paperwork for incorporating or forming an LLC. Often, there may be such a high influx of paperwork it causes offices to become backlogged. As a result, they often complete incorporation paperwork in the order in which it is received. Some offices may not be able to fulfill every standard filing application until next year. This leaves entrepreneurs in the lurch. They do not know when their paperwork will be received and filed by the Secretary of State.
Delayed incorporation filings, however, give entrepreneurs the chance to get ahead in the queue. The date for a delayed incorporation filing may be set 30 to 90 days out into the future. This allows you to reserve the date in the new year. Don’t forget to mention which date you wish for your business to be effective on your delayed incorporation filing application.
Check in with your Secretary of State to ensure they allow delayed filing requests. States like California, Texas, and Florida allow delayed filing requests. However, this is not true of every other U.S. state. Contact your local Secretary of State to see if you may submit a delayed filing.
Set a Significant Start Date
Your incorporation date can have a significant meaning to you. The date you start a business may be baked into the narrative of your company.
For example, let’s say you open a bakery in honor of your grandmother who was an avid baker. You can set the delayed filing date for her birthday. You may also choose a date which commemorates another personal achievement, like the day you graduated from college, or choose a day significant within your industry. This special day can be the same day you choose to open your doors for business.
Get Ready To Be Officially In Business
Setting an effective date gives business owners the chance to catch up on other startup aspects. Some of these may include the following:
- Registering a trademark for names, logos, and designs which are unique to the business.
- Obtaining an employer identification number (EIN) to hire employees and open a business bank account.
- File for business licenses. These allow you to conduct operations in your industry, county/city, and state.
- Designate a registered agent. This ensures there is a proper point of contact between your business and the state to receive necessary paperwork.
- Taking care of miscellaneous small business needs. These may include reviewing your business plan, filing for a business loan, renting or leasing a brick and mortar space, and more.
If this sounds like a lot to juggle in the final month of the year, don’t worry. A delayed filing sets your effective date in advance. This will give you enough time to prep your business and provide peace of mind in knowing you can launch fully ready to make next year your year.
Submit your delayed filing paperwork now for 2023. Contact us at mycorporation.com or give us a call at 877-692-6772.