Money buys faster service

Tuesday, May 23, 2006 | 7:34 a.m.

CARSON CITY - For the impatient businessman with an extra $1,000 to spare, the Nevada secretary of state's office offers 60-minute service in processing corporation filings.

And the expedited treatment - under which the paperwork is processed in a fraction of the normal four- to five-day period - is becoming increasingly popular.

Scott Anderson, deputy secretary of state in charge of commercial recordings, said Monday that there were several requests every week for the speedy handling, created by a law enacted by the 2005 Legislature that became effective Oct. 1.

"We're following Delaware," Anderson said, referring to the East Coast state's reputation for providing business with fast and friendly service.

The requests for expedited service sometimes come from businesses that are merging and need to meet a specific deadline - with lawyers drawing $250 an hour to complete the process. In other cases, a company may be faced with revocation of its corporate filing, and occasionally, a businessman is simply eager to quickly complete the necessary paperwork, Anderson said.

All of the requests are voluntary.

"We are not forcing anybody," Anderson said. "Our customers - the legal community and resident agents - were asking for this as an added service."

Robert A. Ostrovsky, a lobbyist for the Nevada Resident Agents Association - which represents many out-of-state businesses that want to incorporate in Nevada - said some of his members supported the measure as a way of offering improved service to customers. The bill, which passed without a dissenting vote, also was seen as a way to raise more money for the state without boosting fees in general.

But he said some legislators have raised questions about government providing preferential treatment to those who can afford it.

Some lawmakers wonder about the policy of permitting those with money to "go to the head of the line," Ostrovsky said.

The normal incorporation fee ranges from $75 to $35,000, based on a company's capitalization. The annual charge to renew the corporate filing is $125 to $11,110, also based on the capitalization. The speedy-service fee is an additional charge.

Prior to 2005, the law provided for a two-hour handling process for $500 and a 24-hour processing for $125.

The secretary of state handles more than 100 24-hour expedited requests weekly, Chief Deputy Secretary of State Kim Huys said.

When a request for the one-hour service is submitted, the information is fed into a computer and a supervisor follows the data through the process to ensure it meets the deadline. Staff members also are alerted that the application has priority.

Last year 82,000 new companies were incorporated in Nevada, bringing the state's total to an estimated 285,000.