California Bill Streamlines Processing For New Business Startup
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Business Formation & Planning on Monday, April 29, 2013.
Creating a new business usually involves a significant amount of paperwork and administrative hurdles. This is true for just about any state, however California has become especially known for having longer wait times for processing a new business entity. Unfortunately, this has contributed to the state being known as one of the most unfriendly environments for creating a business startup.
However, state lawmakers have recently passed new legislation aimed at reducing the wait time required for processing the paperwork to file for a new business entity. The bill AB 113 will give the Secretary of State's office $2 million more in funding. The measure aims to reduce the wait from 63 days to five business days or less for processing a business filing.
The State Assembly Speaker believes that this will help the state's economic recovery because business owners will be able to contribute to the economy when they are not waiting on the state to process their paperwork. The new goal to reduce the processing time is planned to be reached by November of 2013. Many people in the business community agree with lawmakers that this bill will be beneficial to the state's economy.
The new provision will make it easier to create a new business startup in California. The reduced processing time will allow entrepreneurs to start doing business and making money immediately. However, it will still be a good idea for an entrepreneur to formulate a strong business plan, which should also ensure that the business conforms to applicable rules and regulations as necessary.
Source: caeconomy.org, "Business filing bill seeks to speed up California approval process," Cheryl Getuiza, April 18, 2013