How Your Company Can Avoid These Five Common Pitfalls When Forming New Entities

In 2023, businesses formed nearly 300,000 new entities in Delaware alone . While firms may have many different reasons for creating a new entity—launching a new business, branching out from an existing firm, or qualifying to operate in a new state—they all face the same common pitfalls. Those snares can delay your registration, cost you the name you want to use, or even risk heavy fines. But creating a new entity doesn’t have to be rocky.

With the right advice and close attention to the details, you can smooth the path to a new registration. In our webinar on “Steps to Entity Formation,” we covered five common traps you’ll want to avoid including:

·??????Name conflicts: Ensure your entity's name is available and doesn't violate state restrictions. CSC can assist with name searches and reservations.

·??????Processing delays: State processing times vary; consider expedited services to avoid delays, especially during peak periods.

·??????Document errors: Ensure all filings meet state requirements to avoid rejections. Expert guidance can help.

·??????Wrong documents: Provide the correct certificates to confirm good standing and tax status in different jurisdictions.

·??????International qualifications: Additional steps like obtaining apostilles or embassy legalization are needed when expanding abroad.?

Click here to read more about navigating the registration process—and how CSC can be your skilled, experienced guide.