Expedited/Preclearance services options returning to the California SOS

Submitted by UCS on March 9, 2022

On Tuesday, March 29th, the California Secretary of State will go live with a new business entity system.  

Because of this planned go-live event, the California Secretary of State will have most of their systems down Wednesday, March 23rd through Thursday, April 7th.  Filings submitted during this time will receive the file date of submission (provided that they are in fileable order), but you should expect little to no evidence back during this timeframe. 

Additionally, the California SOS will be closed on Thursday, March 31st, 2022 in observance of Caesar Chavez Day.  This means that there will certainly be backlogs and delays as we approach the end of the month and quarter.
 
Along with the new system, there will be many procedural changes regarding business entity filings such as:
 

Expedited Services will be back! As you know, California suspended all of their expedited offerings during Covid-19, but when the new system launches, they will reinstate 4-Hour, Same Day, and 24-Hour expedited services.

 Preclearance Services will be back! These were also suspended during Covid-19.  Please note that when Pre-Clearances return, they will ONLY be available using the 24-Hour, $500 expedited service.

 California’s “72 Hour Rule” was suspended during Covid-19 and will NOT return.  This means that submissions that are not in fileable order (i.e. rejected filings) will NOT retain their original date of submission.  Resubmitted filings will obtain the file date that they are resubmitted. 

If a specific file date is imperative, it may be wise to pre-clear the document ahead of time.  Additionally, it may be wise to consider utilizing Future File or Future Effective Dates to secure the necessary date. 

Electronic Signatures are now acceptable for filings that can be filed online.  However, if a filing is submitted over the counter, it may not contain an electronic signature. While this is an exciting new option, the rules of “what can be filed online” vs. “what cannot be filed online” are quite complex.  The recommendation is to obtain non-electronic signatures whenever possible going forward as that provides you more options to submit the filing and minimizes the risk of jeopardizing a file date.  As always, a PDF representation of a “wet signature” is acceptable for electronic and over-the-counter submission paths.

Updates to this information will be provided when received.

For questions about these changes feel free to contact a Client Service Representative at (800) 899-8648 or info@unitedcorporate.com.