You’re about to file your formation documents.
But you’re not sure if everything is correct. You’re worried about mistakes. You don’t want rejections or compliance problems.
Mistakes cost you.
Rejected filings. Lost fees. Processing delays. Compliance issues. Legal problems.
This checklist catches problems early.
Red flags. Common errors. Missing information. Formatting issues. Compliance gaps.
Read this. Run the audit. Fix problems before filing.
Key Takeaways
- Common red flags in formation documents include missing required information, incorrect entity type selections, name conflicts, and incomplete registered agent details
- Formatting errors like incorrect date formats, wrong address formats, and missing required designators can cause rejections
- Math errors in ownership percentages, incorrect fee calculations, and missing signatures are common mistakes that cause problems
- State-specific requirements vary—checking your state's exact requirements prevents rejections and compliance issues
- Running a self-audit before filing catches most errors and prevents costly rejections, delays, and compliance problems
Table of Contents
Why Audit First
Auditing before filing prevents problems.
What happens if you don’t audit:
- Rejected filings
- Lost filing fees
- Processing delays
- Compliance issues
- Legal problems
What happens if you audit:
- Catch errors early
- Fix problems before filing
- Avoid rejections
- Save time and money
- Ensure compliance
The solution: Run this audit checklist. Find red flags. Fix them. File with confidence.
Business Name Red Flags
Your business name is critical. Here are red flags to check:
Name Availability Issues
Red flag: Name already exists in state records.
How to check:
- Search state business name database
- Check for exact matches
- Check for similar names that might conflict
Fix: Choose a different name or add distinguishing words.
Missing Required Designator
Red flag: Business name missing required designator (LLC, Corporation, etc.).
How to check:
- Verify name includes required designator
- Check state requirements for designator format
- Ensure designator matches entity type
Fix: Add required designator to business name.
Prohibited Words
Red flag: Name contains prohibited words.
How to check:
- Review state list of prohibited words
- Check for restricted terms (Bank, Insurance, University, etc.)
- Verify name doesn’t imply government affiliation
Fix: Remove prohibited words or get required approvals.
Name Formatting Issues
Red flag: Name formatting doesn’t match requirements.
How to check:
- Verify capitalization is correct
- Check for special characters (if allowed)
- Ensure name matches exactly on all documents
Fix: Format name to match state requirements exactly.
Pro tip: Check name availability before filing. See our state-by-state checklist for state-specific requirements.
Entity Type Red Flags
Selecting the wrong entity type causes problems. Here are red flags:
Wrong Entity Type Selected
Red flag: Entity type doesn’t match what you’re forming.
How to check:
- Verify you selected “LLC” if forming an LLC
- Verify you selected “Corporation” if forming a corporation
- Check entity type matches throughout the form
Fix: Select correct entity type.
Inconsistent Entity Type
Red flag: Entity type inconsistent across documents.
How to check:
- Verify entity type matches on all forms
- Check Articles of Organization vs. Articles of Incorporation
- Ensure operating agreement/bylaws match entity type
Fix: Make entity type consistent across all documents.
Tax Classification Mismatch
Red flag: Tax classification doesn’t match entity type.
How to check:
- Verify LLC tax classification (default vs. S-Corp election)
- Verify corporation tax classification (C-Corp vs. S-Corp)
- Check EIN application matches tax classification
Fix: Align tax classification with entity type and business goals.
Pro tip: Understanding entity types helps you select correctly. See our entity type decision tree for guidance.
Registered Agent Red Flags
Registered agent information is required. Here are red flags:
Missing Registered Agent Information
Red flag: Registered agent field is blank or incomplete.
How to check:
- Verify registered agent name is provided
- Verify registered agent address is provided
- Check registered agent phone/email (if required)
Fix: Complete all registered agent information.
Invalid Registered Agent Address
Red flag: Registered agent address is invalid.
How to check:
- Verify address is physical (not P.O. Box)
- Verify address is in the state of formation
- Check address format matches requirements
Fix: Provide valid physical address in the state.
Registered Agent Not Available
Red flag: Registered agent not available during business hours.
How to check:
- Verify registered agent can receive documents
- Check registered agent business hours
- Ensure registered agent will forward documents
Fix: Use professional registered agent service or ensure availability.
Pro tip: Professional registered agent services ensure compliance and reliability. See our registered agent guide for details.
Owner Information Red Flags
Owner information must be complete and accurate. Here are red flags:
Incomplete Owner Information
Red flag: Owner information is missing or incomplete.
How to check:
- Verify all owner names are provided
- Verify all owner addresses are provided
- Check ownership percentages are included
- Verify all required owner details are complete
Fix: Complete all owner information.
Ownership Percentage Errors
Red flag: Ownership percentages don’t add up to 100%.
How to check:
- Add up all ownership percentages
- Verify total equals exactly 100%
- Check for rounding errors
- Verify percentages match operating agreement
Fix: Adjust percentages to total exactly 100%.
Missing Owner Signatures
Red flag: Required owner signatures are missing.
How to check:
- Verify all required signatures are present
- Check signature dates are included
- Ensure signatures match owner names
Fix: Obtain all required signatures.
Pro tip: Complete owner information prevents rejections. See our form examples guide for correct formatting.
Formatting Red Flags
Formatting errors cause rejections. Here are red flags:
Date Format Errors
Red flag: Dates are in wrong format.
How to check:
- Verify date format matches state requirements (MM/DD/YYYY, etc.)
- Check dates are not in the future (unless allowed)
- Verify dates are logical (formation date before effective date, etc.)
Fix: Format dates correctly per state requirements.
Address Format Errors
Red flag: Addresses are formatted incorrectly.
How to check:
- Verify address format matches requirements
- Check for missing street numbers or names
- Verify city, state, ZIP are included
- Check address format is consistent
Fix: Format addresses per state requirements.
Missing Required Fields
Red flag: Required fields are blank.
How to check:
- Review form for any blank required fields
- Check for “N/A” in required fields (if not allowed)
- Verify all mandatory sections are completed
Fix: Complete all required fields.
Inconsistent Information
Red flag: Information is inconsistent across documents.
How to check:
- Verify business name matches on all documents
- Check addresses are consistent
- Verify owner names match across forms
- Ensure entity type is consistent
Fix: Make all information consistent across documents.
Pro tip: Formatting errors are easy to miss. Double-check everything. See our paperwork guide for field-by-field help.
Compliance Red Flags
Compliance issues cause problems. Here are red flags:
Missing Required Documents
Red flag: Required documents are missing.
How to check:
- Verify Articles of Organization/Incorporation are included
- Check for required attachments (if any)
- Verify operating agreement/bylaws (if required)
- Check for required certificates
Fix: Include all required documents.
Incorrect Filing Fees
Red flag: Filing fees are incorrect or missing.
How to check:
- Verify filing fee amount is correct
- Check payment method is accepted
- Verify fee calculation is accurate
- Check for additional fees (expedited, etc.)
Fix: Pay correct filing fees.
State-Specific Requirements Missing
Red flag: State-specific requirements are not met.
How to check:
- Review state-specific requirements
- Check for publication requirements (if any)
- Verify state-specific forms are included
- Check for state-specific fees
Fix: Meet all state-specific requirements.
Pro tip: State requirements vary. Check your state’s specific requirements. See our state-by-state checklist for guidance.
Complete Audit Checklist
Use this checklist before filing:
Business Name
- Name is available in state records
- Name includes required designator
- Name doesn’t contain prohibited words
- Name formatting matches requirements
- Name is consistent across all documents
Entity Type
- Correct entity type selected
- Entity type is consistent across documents
- Tax classification matches entity type
- Operating agreement/bylaws match entity type
Registered Agent
- Registered agent name provided
- Registered agent address provided (physical, not P.O. Box)
- Registered agent address is in state of formation
- Registered agent contact information provided (if required)
- Registered agent is available during business hours
Owner Information
- All owner names provided
- All owner addresses provided
- Ownership percentages provided
- Ownership percentages total exactly 100%
- All required owner details complete
- Required signatures obtained
Formatting
- Dates formatted correctly
- Addresses formatted correctly
- All required fields completed
- Information consistent across documents
- No typos or errors
Compliance
- All required documents included
- Filing fees calculated correctly
- Payment method prepared
- State-specific requirements met
- All required attachments included
Final Review
- All information verified against master document
- All red flags addressed
- Documents reviewed by second person (if possible)
- Ready to file
Pro tip: Professional formation services handle this audit automatically. They check all requirements and ensure accuracy before filing.
Your Next Steps
Run the audit. Fix red flags. File successfully.
This Week:
- Review this checklist
- Gather all your formation documents
- Run through each red flag category
- Fix any issues found
This Month:
- Complete the full audit
- Address all red flags
- File your formation documents
- Monitor filing status
Going Forward:
- Use this checklist for future filings
- Keep master information document updated
- Review documents before any filing
- Consider professional services for complex filings
Need help? Check out our form examples guide for correct vs. incorrect examples, our paperwork guide for field-by-field help, and our formation mistakes guide for common errors to avoid.
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Sources & Additional Information
This audit checklist provides general guidance for reviewing formation documents. Specific requirements vary by state and entity type.
For form examples, see our Form Examples Guide.
For paperwork help, see our Paperwork Guide.
For common mistakes, see our Formation Mistakes Guide.
