Understanding Statement of Information in California: A Quick Guide for Business Owners
If you’re a business owner in California, you may have heard of a “Statement of Information” or “SOI.” The purpose of this document is to provide the state with updated information about your business. In this article, we’ll provide a quick guide to help you understand what an SOI is, why it’s important, and how to file one.
What is a Statement of Information?
A Statement of Information is a document filed with the California Secretary of State that provides updated information about your business. This includes details such as your business’s name, address, and the names and addresses of officers, directors, and members.
Why is Filing a Statement of Information Important?
Filing an SOI is mandatory for all businesses registered in California. Failure to file can result in penalties and even suspension or forfeiture of your business’s status. Additionally, keeping your business information up-to-date can help ensure that you receive important legal and tax notifications from the state.
When Should You File a Statement of Information?
For corporations, LLCs, and limited partnerships, an SOI must be filed every year within 90 days of the entity’s anniversary date. For example, if your business was formed on January 1st, your anniversary date would also be January 1st, and your SOI would be due by March 31st of every subsequent year.
How Do You File a Statement of Information?
To file your SOI, you’ll need to visit the California Secretary of State’s website and complete the appropriate form. The fee for filing varies depending on your entity type but generally ranges from $20 to $25.
What Happens if You Don’t File a Statement of Information?
If you fail to file your SOI on time, you’ll be charged a late fee of $250. Additionally, if you continue to be delinquent, your status as a business entity may be suspended or even forfeited, which could result in serious consequences such as losing the ability to sue or be sued.
Conclusion
Filing a Statement of Information is a critical aspect of maintaining your business’s legal and tax compliance. By understanding what this document is and why it’s important, you can ensure that your business stays in good standing with the state of California. Be sure to mark your calendar and file your SOI on time every year to avoid costly penalties and maintain your business’s ability to operate.
