A NOTE FROM BARBARA
CFO
October is recognized by the employee ownership (EO) community as a time to promote and celebrate the many benefits of employee ownership. For companies like Parasec, EO Month is an opportunity to educate our teams about our ownership structure, recognize our shared successes, and highlight with the broader community the positive impact employee ownership has on individuals, businesses, and society.
Parasec began its journey toward employee ownership in 1995 and became 100% employee-owned in 2006. Looking back, we take great pride in celebrating our employee owners—their dedication, ideas, exceptional service, and commitment to customer care are the foundation of our success.
At Parasec, we foster a culture of shared purpose, trust, and pride. Through increased transparency and financial literacy, our employee owners have access to company financials that empower them to take an active role in our success. By embracing an owner’s mindset, they contribute not only to their own growth but also to the strength of the company as a whole. When Parasec performs well, we all share in the rewards—because it’s our collective efforts that drive those achievements.
Employee ownership is more than a business model—it’s a philosophy that enhances working lives, strengthens livelihoods, and deepens community impact. At Parasec, our employee owners exemplify accountability, engagement, and a genuine passion for serving others. We hope you see these qualities reflected in every interaction with our team.
To our valued clients, thank you for the opportunity to work with you. We’re grateful for your trust and partnership.
Happy EO Month to our team and to our fellow employee-owned companies!
Industry News
Alaska: Expect Possible Filing Delays
The Alaska Division of Corporations, Business and Professional Licensing enters its busiest renewal season from October through February. During this time, processing times for hard copy filings may exceed the usual 10–15 business days (2–3 weeks).
If you’re planning to file documents in Alaska and need support, our team is here to help. Don’t hesitate to reach out—we’re ready to assist you through the process. Contact our team at parasec@parasec.com.
Delaware: Important Updates for LLC Compliance Under SB 98
Delaware Senate Bill 98 (SB 98), which amends the Delaware Limited Liability Company Act and took effect on August 1, 2025, introduces several key changes. One of the most notable updates restricts what registered agents can—and cannot—do. Specifically, the law prohibits registered agents from performing their duties solely via “virtual offices” or “mail forwarding services.” The bill defines “virtual office” as performing duties or functions solely through the internet or other remote communication methods.
Beyond these registered agent restrictions, SB 98 also expands how void or voidable LLC acts may be ratified or waived. The updated language allows ratification or waiver not only by the LLC itself but also by members, managers, or other persons, and permits more flexible methods—such as express or implied conduct, including statements, actions, inaction, or acquiescence. Notably, the bill is intended to override existing case law that previously limited ratification to the LLC’s own acts and excluded ratification by conduct.
Additional provisions include the ability to nullify previously filed certificates of cancellation via a certificate of correction, and clarification that full annual tax obligations must be satisfied before filing a certificate to cancel or terminate an LLC or series.
To review the full bill, click here.
Florida: Changes to Service of Process
Effective October 1, 2025, Florida House Bill 157 revises procedures for service of process (SOP) in the state. Previously, registered agent offices were required to be open daily from 10 a.m. to 12 p.m., excluding weekends and holidays. The new bill adds an additional required window from 2 p.m. to 4 p.m. on those same days. This expansion aims to improve accessibility and reduce missed service attempts.
The bill also clarifies who may be served at the registered office when the registered agent is a natural person. Service may now be made on any employee present at the designated office at the time of service, including during the first attempt. While this may streamline the SOP process, it can also lead to issues if untrained staff mishandle legal documents. Naming a commercial registered agent like Parasec helps avoid these risks by ensuring SOP is received and processed by trained professionals.
Additionally, the bill establishes procedures for substituted service on nonresidents or individuals who are concealing their whereabouts. It also includes a retroactive provision validating SOP actions taken after January 2, 2023, provided they have not been invalidated by a court.
To read the bill in its entirety, go here.
Montana: Conversions and Domestications
Effective October 1, House Bill 463 introduces a significant update to Montana’s business entity laws. The new law allows limited liability companies (LLCs) to formally convert into either a corporation or a limited liability partnership (LLP). The bill outlines conversion requirements, including approval of the conversion by members and filing the required documents with the Montana Secretary of State. To learn more, access the complete legislative details here.
Also effective October 1 is House Bill 530, which allows for the domestication of LLCs, LLPs, benefit corporations, and nonprofit corporations provided it is authorized by the law of the foreign entity’s jurisdiction of formation. For more specifics, view the bill online here.
New York: The LLC Transparency Acti is Coming
On March 1, 2024, Governor Kathy Hochul signed Senate Bill 8059 into law, repealing and replacing the original version of the New York LLC Transparency Act (NY LLCTA). Initially modeled after the federal Corporate Transparency Act (CTA), the NY LLCTA has since evolved to establish its own definitions and exemptions—distinct from federal law.
Slated to take effect on January 1, 2026, the revised NY LLCTA applies to both domestic and foreign LLCs that are either formed in New York or authorized to do business in the state. Unlike the CTA, which covers a broader range of entity types, New York’s law is limited to LLCs only.
Under the new requirements, affected LLCs must disclose specific information for each beneficial owner, including their full legal name, date of birth, business or residential address, and a unique identifying number from an acceptable document such as a driver’s license or passport. LLCs formed or registered on or before January 1, 2026 must file this information by December 31, 2026. Those formed or registered after that date must report within 30 days of filing their articles of organization or application for authority. Even exempt LLCs are required to submit an affirmative assertion of exemption, following the same timeline.
In addition to the initial filing, all LLCs—whether reporting or exempt—must submit an annual statement confirming or updating their beneficial ownership information, principal executive office address, and exemption status if applicable.
Importantly, the NY LLCTA database will remain confidential, accessible only to law enforcement and government agencies under specific conditions. However, failure to comply with the law can result in serious consequences. LLCs that do not file the required disclosure, exemption attestation, or annual statement within 30 days will be marked as “past due.” After two years of noncompliance, they’ll be listed as “delinquent,” and the Attorney General may impose fines of up to $500 per day.
Although the law is not yet in effect, New York LLCs should begin assessing their reporting obligations now. If your company is likely to be subject to the NY LLCTA, this is the time to start identifying beneficial owners, gathering documentation, and preparing for compliance.
Texas: Expedited Business Services and Veteran Business Relief
Texas House Bill 346 introduced expedited business filings and permanent tax relief for veteran-owned businesses. Starting October 1, the Texas Secretary of State (TX SOS) will offer three service tiers for select filings:
- Standard Expedited: $50 per document
- Next-Day: $500 per document (received by the TX SOS by noon central time the prior day, in-person only)
- Same-Day: $750 per document (received by the TX SOS by noon central time same day, in-person only)
Filings include Certificates of Amendment, Conversion, Restated Formation, and Validation. Expedited service prioritizes review but doesn’t guarantee approval.
Additionally, the bill established a permanent exemption from the franchise tax and certain filing fees for veteran-owned businesses. Previously, these benefits were scheduled to expire in 2026.
For more details on this bill and other recently signed business legislation in Texas, visit this site. To read the House Bill 346 in its entirety, go here.
Texas: House Bill 40 Expands Access to Business Court
Effective September 1, 2025, Texas House 40 significantly reshapes the jurisdiction and accessibility of the Texas Business Court, a specialized venue for complex commercial litigation originally established in 2023. The bill is designed to make the court more accessible to a broader range of corporate litigants and to enhance its role in resolving high-stakes business disputes.
One of the most notable changes is the reduction of the monetary threshold for qualifying cases, lowering it from $10 million to $5 million. The bill also expands the court’s subject matter jurisdiction to include disputes involving intellectual property and trade secrets, while explicitly excluding consumer transactions to preserve the court’s focus on business-to-business litigation.
Find more information here.
Disclaimer: This newsletter provides brief summaries of the included bills, many of which are comprehensive and nuanced. These overviews are not intended to capture all potentially relevant provisions. For complete and up-to-date information, please refer to the full text of each bill on the appropriate state legislative website.
Service Spotlight
Entity Dissolution & Withdrawal Services
Closing a business doesn’t have to be complicated. Our Dissolution & Withdrawal Research service simplifies the process by identifying your entity’s current status, outlining state-specific requirements, and providing all necessary forms. We’ll also flag any additional steps—such as annual reports or tax clearance certificates—so you can stay compliant and avoid delays.
Prefer to have someone handle the filings, too? We also offer a separate filing service that can take care of submitting the documents for you. Both services are available in all 50 states and can be used independently or together, depending on your needs.
Let us take the guesswork out of dissolution.
Reach out to us at parasec@parasec.com—we’re here to help!
Client Testimonial
“Parasec makes corporate document projects less intimidating. The staff is very knowledgeable and very easy to work with.”
~ Rebecca L., Paralegal