A NOTE FROM BARBARA
CFO
October is Employee Ownership Month, and it’s a great opportunity to reflect on what it means to be an employee-owned company. In fact, I am often asked what it truly means to be an employee-owned company. At Parasec, employee ownership is more than a business model, it’s part of who we are.
As an employee-owned company, every member of our team has a personal stake in our success through our Employee Stock Ownership Plan (ESOP). That means the people serving our customers, solving problems, and supporting businesses every day are also invested in helping Parasec grow and thrive.
The ownership mindset helps foster a culture of accountability, collaboration, and pride. It encourages us to think beyond today’s work and focus on building lasting relationships, delivering exceptional service, and making decisions that strengthen our company for years to come.
For our customers, this means working with a team that truly cares. When employees are owners, every task matters, every relationship is valued, and every success is shared.
We’re proud to be employee-owned because our greatest strength has always been our people. Their dedication, expertise, and commitment make Parasec stronger every day, and we’re honored to share in the success they help create.
To our employee-owners, thank you for everything you do. Together, we’re building a stronger company, creating opportunities for one another, and making a positive impact on the clients and communities we serve.
And to our clients, thank you for your continued trust and support. We’re grateful for the opportunity to serve you and appreciate the role you play in our success. We look forward to supporting your business for many years to come.
Industry News
California: County Recording Fee Changes and Expanded E-Recording Requirements
California Assembly Bill 2224 (AB 2224) was signed into law on September 18, 2026, making several changes to county recording fees and processes throughout the state.
For businesses and professionals who regularly record documents, the most immediate impact will be an increase in recording fees. The base fee rises from $10 to $15 for the first page, and from $3 to $4 for each additional page. At the same time, the law eliminates certain nonconforming document and indexing fees, helping simplify how recording costs are calculated.
The legislation also continues California’s move toward electronic recording. County recorders that collect these fees must implement e-recording systems by January 1, 2028. As more counties adopt electronic recording, businesses may benefit from faster processing times and improved access to recording services.
Another notable change is a requirement for county recorders to provide access to true copies of recorded public records. This could make document retrieval, due diligence, and property research more efficient.
While AB 2224 does not create new compliance obligations, organizations that frequently record documents in California should be aware of the updated fee structure and the state’s ongoing transition to electronic recording. Read the full bill here.
California: New Law Targets Fraudulent UCC Filings
Effective January 1, 2027, California Assembly Bill 501 (AB 501) introduces new measures aimed at combating fraudulent UCC financing statement filings. The law increases the maximum civil penalty for knowingly filing a false lien or other encumbrance from $5,000 to $15,000 and expressly includes UCC financing statements within those provisions. It also prohibits filing a financing statement when no reasonable legal basis exists.
Under the new law, the California Secretary of State must notify debtors within 21 days after a financing statement is filed. AB 501 also creates a process for debtors to challenge financing statements they believe were improperly filed. If certain requirements are met and no court action is taken, the filing office may terminate the disputed filing. Legitimate secured parties retain the right to seek court intervention to preserve valid filings.
The changes are designed to make it easier to address unauthorized UCC filings while reducing opportunities for abuse of the filing system. Read the bill in its entirety here.
Delaware: Plan Ahead for Year-End Entity Terminations
Delaware allows businesses to submit dissolution, cancellation, and other termination filings in advance while selecting a future effective date. This can help legal teams, CPAs, and business owners complete year-end planning early, avoid last-minute deadlines, and address any filing issues before the holiday rush.
For Delaware corporations, future effective dates may be set up to 90 days after filing. LLCs and LPs may select an effective date up to 120 days after filing. Keep in mind that all required franchise taxes and annual reports must be filed and paid before, or at the time, the termination document is submitted. Also note that once a dissolution or cancellation filing with a future effective date has been submitted, the entity cannot obtain a certificate of good standing or certified copies until the effective date has passed.
If you’re planning a year-end entity termination, filing ahead of time can help simplify the process and reduce year-end stress.
Need assistance? Contact our Delaware team at deorders@parasec.com.
District of Columbia: Dissolution Fees Reduced Starting October 1, 2026
Businesses with District of Columbia entities may want to take note of a significant fee reduction now in effect for certain domestic entity dissolution filings. Filing fees for many dissolution-related documents have been reduced to just $5, making it substantially less expensive to dissolve inactive entities or revoke a prior dissolution.
Some of the most notable reductions include:
- LLC Statements of Dissolution: $220 to $5
- Corporation Articles of Dissolution: $220 to $5
- Corporation Revocations of Dissolution: $220 to $5
- LP Statements of Dissociation: $220 to $5
- GP Statements of Dissociation: $220 to $5
- Statutory Trust Articles of Dissolution: $220 to $5
- Nonprofit dissolution filings: $80 to $5
For businesses looking to dissolve inactive District of Columbia entities, the new fee structure could result in significant savings.
Iowa: Nonrefundable Surcharge Fees
When using preclearance or expedited filing services in Iowa, keep in mind that associated surcharge fees are nonrefundable. This applies even if a filing is returned unfiled, rejected, or submitted after a posted cutoff time.
If corrections are needed, the document must be resubmitted along with any applicable fees. Careful review before submission can help avoid unexpected costs and processing delays.
Learn more on the Iowa Secretary of State’s Preclearance and Expedited Services page here.
Louisiana: Filing Fee Increases Start October 1, 2026
Businesses with Louisiana entities should be aware of upcoming filing fee increases. Effective October 1, 2026, the Louisiana Secretary of State will implement a new fee schedule affecting a variety of business filings, including entity formations, annual reports, registered agent changes, certificates of good standing, certified copies, and expedited processing services.
Some of the most common increases include:
- LLC formations: $100 to $125
- Foreign LLC registrations: $150 to $185
- Corporate formations: $75 to $95
- Foreign corporation registrations: $125 to $155
- Annual reports: $30 to $35
- Certificates of good standing: $20 to $25
Organizations planning Louisiana filings may want to review upcoming needs before the new fees take effect. To view the upcoming fee schedule, go here.
Parasec Updates
Coming Soon: A Fresh New Look for Parasec
We’re excited to share that Parasec will be launching a redesigned website later this month. Along with an updated design, you’ll see enhancements to our entity management platform, ordering process, account management tools, payment experience, and more.
While the experience may look a little different, the responsive service and personalized support you’ve come to expect from Parasec remain the same.
We’re looking forward to sharing these improvements with you and helping make it even easier to do business with Parasec.
Stay tuned. The same trusted service is getting a fresh new look.
Service Spotlight
Entity Formations & Foreign Qualifications
Starting a new business or expanding into another state? Parasec provides nationwide support for entity formations and foreign qualifications.
Whether you need filing-only assistance or full document preparation and filing, our experienced team helps simplify the process and reduce delays. We can assist with name reservations, new entity formations, and multi-state qualification projects.
From startups to established companies, businesses, law firms, and accounting professionals rely on Parasec for responsive service and attention to detail.
Learn more about our entity formation and foreign qualification services.
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.
Client Testimonial
“I have been a client of Parasec for over 40 years. I can always depend on its staff to completely satisfy my requests.” ~ Raymond S., Attorney