You've done your research and have decided on a business entity. You're chomping at the bit to open a bank account and get moving. You file your corporation or LLC with the Secretary of State and wait...and wait...and wait. Just how long is this going to take?

California Filing Times

The California Secretary of State can be very slow when it comes to approving new business entities. Once you file the entity, you can sit around tapping your fingers for as long as two months. After two months, you may not even remember why you filed the darn thing! Can you avoid this time and momentum killer? YES!

The California Secretary of State offers "rush filing" options for forming business entities. The first is a 24 hour rush that ads $500 to the filing process, an expense that should really only be undertaken if you are desperate. The second option runs a whopping $15 and has a turn around time of 7 to 10 business days. Ah, so this is the way to do it, right? Nah, that would be far too easy!

For rush filings, the Secretary of State requires all filings to be made in person. If you are not located in Sacramento, this can cause a major problem. So, what do you do?

If you are creating a corporation, you can file the articles of incorporation at a branch office of the Secretary of State. Most major cities have a branch, but you can pop on to the web site for the Secretary of State and find your local branch.

If you are forming an LLC, California makes things difficult. For no logical reason, the Secretary of State doesn't allow LLC filings to be made at branch offices. This policy makes absolutely no sense, but what are you going to do? You are going to beat the state at its own game.

Rush LLC filings must be personally filed in the Sacramento office of the Secretary of State. The policy doesn't say WHO must personally file it. Using this loophole, you can hire an attorney delivery service in Sacramento to file and pick up the Articles of Organization for your LLC. You simply send them the articles as well as the filing and rush filing fees. You can expect to pay the attorney service an additional $50 to $75 for the service.

California is one of the worst states to do business in. The Secretary of State does everything possible to make filings a pain in the... With this information, you can turn the tables and beat them at their own game.

Richard Chapo

Richard Chapo is a lawyer and CEO of Business Tax Recovery, based in San Diego, California. He is an avid traveler with trips to over 50 countries and a few places that he can't pronounce.