Understanding the Essentials: What is a Statement of Information in California?
As a business owner in California, it is crucial to keep your company records up-to-date. One essential document that all corporations, limited liability companies, and nonprofits must file regularly is a Statement of Information. In this guide, you will learn what this document is, why it is important, and how to file it correctly.
What is a Statement of Information?
A Statement of Information is a legal document that provides crucial information about a business entity to the California Secretary of State. This report is required by law every year for LLCs and nonprofits and every two years for corporations.
The report includes the following information about the business entity:
1. Name and address of the entity
2. Names and addresses of all its officers, directors, or managers
3. Registered agent for service of process (if applicable)
4. Type of business entity
5. Mailing address (if different from the principal address)
6. The nature of the business activity
Why is a Statement of Information important?
Filing a Statement of Information is critical for keeping the business entity’s records up-to-date. Updated records help with business compliance, protect the owners from liabilities, and provide accurate information to third parties such as the government, banks, and creditors. Accurate records help in the distribution of profits, making business decisions, and maintaining good standing with the state.
Failing to file a Statement of Information on time can result in hefty penalties. For example, the Secretary of State charges a $250 late fee for LLCs if the form is filed more than 90 days after its due date. Corporations that don’t file or miss the deadline, risk suspension, and ultimately may get dissolved.
How to file a Statement of Information in California?
A Statement of Information can be filed online or by mail. The following steps outline how to file the form online.
Step 1: Go to the California Secretary of State website and log in. If you don’t have an account, create one.
Step 2: From your profile, click on the actions tab and select ‘file a Statement of Information.’
Step 3: Enter the required information, such as the entity number, business name, and filing period.
Step 4: Pay the filing fee (currently $20 for nonprofit corporations, $25 for LLCs, and $25 for corporations).
Step 5: Review the information and certify that everything is accurate and complete.
Step 6: Submit the form.
In Conclusion
A Statement of Information is a crucial document that every California business owner must file. Being aware of the legal requirements for filing the form, and keeping on top of them, ensures the company stays compliant and avoids penalties or worse, being dissolved. Remember that keeping timely and accurate records allows organizations to make informed business decisions, protect against potential liabilities, and maintain good standing with the state.
