Alerts

Some Filings Eligible for E-Benefits

As of today, almost all U.S. states have passed statutes allowing for electronic or e-recording of real estate documents. We are happy to now offer an e-recording service in thousands of counties across the country.

In most cases, e-recording reduces fees and turnaround time for evidence of filing. Because we are able to get an almost immediate satisfaction of filing or rejection, there is no longer a concern that a filing office or delivery service will misplace an important document without us knowing. Postage alone on large recording projects can add significant costs – especially if those large boxes are shipped to your service provider, a local filing office, and then back to your desk.

As we’ve seen with some Secretary of State requirements, it’s not impossible to imagine a day when real estate documents are required to be electronically transmitted. Take advantage of our e-recording service and ask us if your next filing is eligible!

IS MY FILING ELIGIBLE?

Legalizations vs. Apostilles

Legalization is a term used in international law to describe the process of authenticating or certifying a document so that it will be recognized as valid in a foreign country. Legalization creates a chain of authentications, each by a progressively higher government authority, from the country where the document was issued to the embassy or consular office of the country in which the document is to be used. It may sound simple enough, but in practice, legalization can be a complicated sequential process of multiple verifications that can vary by country and government office.

Not all countries, however, require legalization of documents. The Hague Convention is an international treaty, now with over 115 member countries, that specifies the manner through which a document issued in one member country can be certified for legal purposes in each of the other member countries. Certification under the terms of the Hague Convention is called an apostille and is sufficient for acceptance in place of any further legalization processes. The catch, however, is that both countries must be members of the Hague Convention for an apostille to be sufficient.

Whether you need an apostille or legalization, Capitol Services has a dedicated apostille and legalization team with experience working with embassies, consulates, and designated competent authorities. Contact us to help make what can be a timely and complicated process as quick and seamless as possible.

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Delaware Allows Formation of Registered Series

People love series. They love to watch the World Series, read the Harry Potter series, and binge on the Friends television series. Now there is a new series in town. Get ready for the Delaware registered series!

In 1996, Delaware allowed for the creation of a series LLC, a unique form of limited liability company in which the articles of formation specifically allow for unlimited segregation of membership interests, assets, and operations into independent series. Other states soon followed by passing their own series LLC legislation. To date, seventeen states have enacted series LLC legislation, four additional states acknowledge series LLCs but do not offer the liability shield, and at least three states have introduced series LLC legislation for consideration this year. In 2017, the Uniform Law Commission approved the Uniform Protected Series Act in an attempt to provide consistency across the states, and most recently, the Delaware Limited Liability Company Act was amended to address certain limitations in connection with their existing series LLC statute.

Effective August 1, 2019, Delaware will allow for formation of a registered series LLC by filing a certificate of registered series in the office of the Secretary of State. This new legislation allows for the merger and consolidation of registered series, issuance of certificate of good standing for registered series, and the conversion of a protected series into a registered series. There will be an annual tax of $75 per registered series, and the statute allows for the administrative cancellation of a registered series after three years of delinquency. So why are series LLCs gaining so much attention? Shockingly, not for the same reasons that people love watching a home run that turns around Game 4, reading another lengthy tale of wizardry, or revisiting the scene where Monica has a turkey on her head.

Series LLCs offer a method of liability segregation without the cost and upkeep of forming multiple LLCs. Instead, they permit a single LLC to be formed with the designation that it will allow for series to be created within the limited liability company agreement. Thereafter, each individual series will operate like a separate entity with a unique name, bank account, and separate books and records. Each series within the LLC may enter into contracts, sue or be sued, and hold title to real and personal property, and the assets owned by each series are shielded from the risk of liability of the other series within the same series LLC.

Series LLCs may not be as exciting as the World Series, or as entertaining as Harry Potter and Friends, but they are gaining in popularity and are expected to continue to increase in number.

(Illustration ©Vecteezy)

 

 

Delaware Act Promotes Sustainability

Effective October 1, 2018, Delaware’s Certification of Adoption of Transparency and Sustainability Standards Act (the “Act”) is the first of its kind. The Act’s purpose is to enable Delaware entities to demonstrate their commitment to sustainability to the public.

To become a reporting entity under the Act, the entity’s governing body must first adopt resolutions creating standards and assessment measures of the impact of the entity’s activities on society and the environment. The proposed assessment measures must include any procedures for internal or external verification of the measures. However, the entity is free to rely on various sources in designing its standards and assessment measures without judgment from the Secretary of State.

After adopting the required resolutions, the entity can obtain certification under the Act by submitting a standards statement to the Secretary of State detailing the resolutions, making specific acknowledgments concerning its commitment to implementing and maintaining its standards and assessment measures, and paying the corresponding fees. Entity types that register or form with the Secretary of State must be in good standing.

Entities must file annual renewal statements between October 1 and December 31 of each year and remain in good standing to maintain certification under the Act.

Entity Management Made Simple

Routine upkeep of corporate information such as officers, directors, and shareholders is a must for any company. Our Corporate Entity Manager is a user-friendly, customizable platform on our Client Dashboard that allows you to organize and maintain business entity information, such as corporate names, entity types, charter numbers, dates, tax identification numbers, and ownership and management information.

Other important data can be maintained through fields tailored to your specific needs. Powerful search and export functions allow you to quickly find and download entity information with ease. Other features include:

• Searchable entity records
• Corporate registration information
• Access to legal and notice records
• Annual Report Calendar
• Access to Annual Report Management Filings
• Customizable data management
• Corporate contacts library

If you have any questions about our Corporate Entity Manager or your online access please call us at 800.345.4647 or email us at info@capitolservices.com.

A Word of Corporate Caution

The file-date given to a corporate filing is not always the date of submission. Some states assign the date the filing is processed and accepted as the file-date. Given the processing time of the state filing office there may be a difference of days or even weeks between the date of submission and the actual file date.

The calculation of a projected file date is made even more complicated by the manner in which states handle errors within filings or rejected documents. For example, Texas gives filings the date of submission if they are accepted, but the date is lost if the document is rejected. Once accepted, the corrected filing is given the date of resubmission as the file-date. Other states, such as Delaware, will give you a finite period of time to address any issues in the filing and still hold the date of original submission as the file-date.

Knowledge of filing date rules in each jurisdiction is invaluable as deadlines occur. Let us help you navigate the nuances.