Due Diligence Service Provider
The IRS has release a new 4506-T tax verification form and they will stop accepting any other versions of the form on March 1, 2018. Click here to download the new form and contact the CORPSMART™ team with any questions at 800-737-8012.
To learn more about our 4506-T services, connect with our sales team at 800-737-8009.
One of the first records a lender should obtain in satisfying their due diligence, is requesting the Charter Documents. This is a key piece of information that our clients sometimes opt-out of or even attempt to resolve by obtaining a good standing; neither of which are good practice. As a client recently learned, knowing the accurate and most current name of a business entity can make or break the validity of your due diligence intelligence.
So whats the benefit to ordering the Charter Documents? The Charter Documents will provide the secured party and searching party with their borrowers accurate business name. Many businesses change their name throughout the course of their life, and ordering Charter Documents is the only way to obtain the amendments which will show changes made to the name.
Verifying your entity by doing a quick search and looking at the entities good standing or Articles only? We’re cringing just thinking about that! This is where things start to go downhill. We recently had a client request a due diligence search based on the name that the potential borrower provided from their Articles of Incorporation only. It turns out that the client had made a minor change to the name, and we caught the variation while searching. We informed our client of the similar name and asked if they would like that name searched as well. In the end, the client incurred larger search fees and had they not ordered the similar name, they could have missed those findings all together.
Do not overlook the importance of obtaining Charter Documents and contact our team for further information regarding how we can assist you with obtaining these records.
March 1: Delaware
March 1: Nebraska
March 1: Rhode Island
March 15: California
March 31: North Dakota
March 31: Wisconsin
February 1: North Dakota
February 15: Michigan
Please take note of the following state holidays as closures could affect your time sensitive filings:
Monday, February 12th // Lincoln’s Birthday
Tuesday, February 13th // Mardi Gras
Monday, February 19th // Presidents’ Day
International holidays and closures:
Thursday, February 15th – Wednesday, February 21st // Chinese New Year
In Washington State, House Bill 2781 has begun moving forward and is scheduled for a hearing on Thursday, January 24th at 10am.
This new legislation will prevent any annual report filings including nonprofits to be filed with the Secretary of State; directing all annual report filings to be filed with Business Licensing. This could affect your business as it will cost more for all the companies to perform these filings. In addition, if the first bill fails, a second bill is behind it that will increase the cost of annual reports that do get filed with Business Licensing Services in an effort to make up some money.
CORPSMART™ will be attending the hearing and stakeholders are being encouraged to do the following:
Proposed legislation:
If HB2781 were to become law, it would take all of the OSOS annual report duties and place them with the Department of Revenue – Business Licensing Service and would reinstate the $11 fee per transaction. In addition, this bill would add Nonprofit Corporations and Limited Partnership annual reports to the BLS filing process and fees. There are approximately 60,000 Nonprofit Corporations that file a $10 annual report each year. The new process would increase the cost of filing the annual report from $10 to $21 and could remove approximately $660,000 from the Washington State nonprofit community.
The ask:
We ask that you express opposition of this bill to your legislators. In addition we ask that you be available (or be represented) to testify in opposition should this bill move forward to a committee hearing.
HB 2781 was submitted by representatives Lytton and Ormsby of your legislative districts.
Effective January 1, 2018
California Senate Bill 2 creates a $75 fee on certain real estate transaction documents when they are recorded. The filing fees are not to exceed $225 per transaction. The fee does not apply to sales of residential and commercial properties, but instead to other transactions like mortgage refinancing and county fixture filings.
To learn more, visit https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB2
Or contact the CORPSMART™ team at 800-737-8012 for further information regarding your mortgage filing needs.
Effective December 20, 2017
Illinois announces Limited Liability Company Filing Fees Reduced by New Law SB 867 – effective immediately – reduces filing fees for limited liability companies.
Illinois Secretary of State Jesse White is announcing that a new law reducing filing fees for Illinois Limited Liability Companies (LLCs) took effect today, immediately upon the signature of the governor. Senate Bill 867, sponsored by state Sen. Thomas Cullerton (D-Villa Park) and state Rep. Carol Sente (D-Buffalo Grove), amends the Limited Liability Company Act, reducing filing fees for LLCs.
“This is a business-friendly law that significantly reduces the cost of forming and maintaining a Limited Liability Company in Illinois,” said White. “My office has been given the task of administering these fee reductions with respect to transactions, whether done online, through the mail, or in person. We strive to provide the highest level of customer service for every filing method used.”
Each month the Secretary of State Business Services Department processes and files approximately 20,000 LLC annual reports and documents. For more information regarding the fee reduction or to form an Illinois LLC today, contact the CORPSMART™ team at 800-737-8012
Effective January 1, 2018
Maryland will be separating the Annual Report and Personal Property Tax.
Return filings, which historically have been combined in Form 1. All business entities will still be required to file a two-page Annual Report, and directions within that document will determine whether or not they must also attach a Personal Property Tax Return. The majority of business owners—roughly 200,000—do not actually own any personal property and will not be required to complete that section.
For assistance in filing your annual report, contact the CORPSMART™ team at 800-737-8012.
Effective January 1, 2018
Indiana is adopting the Uniform Business Organizations Code and the Uniform Business Organization Transactions Act. A great number of technical changes have been made to the INBiz filing platform In order to accommodate the new requirements. The INBiz system will shut down starting at 11:30 p.m. EST on December 31, 2017 and is scheduled to be back up at 9:00 p.m. EST on January 1, 2018.
The Secretary of State’s office advises the following:
The following alert was sent to customers.
Senate Bill 443, effective January 1, 2018, enacts the Uniform Business Organizations Code and the Uniform Business Organization Transactions Act, governing various issues, including filings with the Secretary of State, names, registered agents, foreign entities, administrative dissolution, fees, mergers, interest exchanges, conversions and domestications for all business entity types.
to learn more, visit https://iga.in.gov/legislative/2017/bills/senate/443#document-ca0e392c