OtoCo Documentation
Search…
⌃K

2. How we condensed speed of formation to seconds instead of days

Mickey Mouse Members

In most jurisdictions, upfront Know-Your-Customer and Anti-Money Laundering checks are performed before a new company can be filed, either at the official Registry level or by licensed formation agents, making the whole process a stop-start event which is difficult to automate and optimize for speed.
By contrast, it is effectively possible - be it not very useful - to form a new company in the United States with Mickey Mouse as its first Member, since identity checks are effectively pushed out and performed only when the need arises, e.g. when the LLC applies for a bank account.
As with real birth, the company's birth certificate gets issued first, the passport follows later - and only if there's a need to travel!
This lack of attestation of a Member's identity at the moment of birth of an US LLC helps enormously in condensing the due process of formation.
However for every new LLC filed, there's still a wait of 12 to 48 hours until Registry stamps a new entity's "birth certificate".
How to get to remove this blocker?