The long-awaited completion of the Limited Liability Company registration phase allows you to leave the worry and hassle of preparing incorporation documents and obtaining permits behind. It seems that now you can relax and concentrate only on what it is all about your business.
However, the truth is that after the official opening of a company, your dealings with the state only really begin.
The list of documents that every California LLC must submit regularly includes an annual report. It consists of two parts:
- A Franchise Tax;
- A Public Information Report.
The Statement of Information California report is a mandatory condition of doing business. This is due to the authorities’ need to keep their records up-to-date to be able to contact any of the companies. And of course, it requires cooperation to handle such a non-trivial task.
Let’s take a closer look at what exactly a Statement of Information is, when and where it should be submitted, and how much it will cost you.
What is a California Statement of Information?
Speaking of the Statement of Information, some people sometimes say “annual report,” which causes misunderstanding among new entrepreneurs about the meaning of the terms.
The Statement of Information is the name of a document known in other states as an Annual Report. This document must be filed annually by all companies in California.
The purpose of the Statement of Information is to collect information about every company operating in the state, including foreign ones. It is done, first of all, to provide the state authorities with all the necessary contact information. And, if necessary, they can reach the company at any time in order to deliver important notices about status, taxes or services. That is why, when considering this report, an analogy is sometimes made with the census.
In addition, the information you gave may also be useful for other companies or potential clients, if they need to search for your LLC.
When the Secretary of State has current information, any person can easily find you on its official website.
When to File the Statement of Information?
Once you file an LLC in California, there is a countdown to file your first Statement of Information. The time period is 90 days and begins from the date when the company is approved by the Secretary of State.
If you need information about the approval date, you can find out all the details using one of the methods below:
- Look in the Articles of Organization;
- By searching for your LLC online.
All companies have to file such a report regularly. While planning to submit it, you should keep in mind that the activities of the LLC should not be suspended and the property should not be subject to confiscation.
If you are not sure about the status of your company, all information will be available on the Secretary of State website.
Due Date and Frequency for an Statement of Information in California
According to the law, California LLC must file a Statement of Information every two years, not once a year as it is required for corporations.
In practice, the two-year period means that the date of the formation of your company will be considered when planning your reports:
- If your business is registered in an even-numbered year, the Statement of Information will also need to be filed every subsequent even-numbered year;
- If you started it during an odd-numbered year, then you will file during every odd-numbered year.
To be more specific, the Statement of Information must be sent by the company no later than the last day of the month it was created, or in any of the 5 preceding ones. The total filing period is 6 months.
For a better understanding of how it works, let’s look at an example.
If your California LLC was approved by the Secretary of State on August 10th 2019, then:
- August 10th is your registration date, from which the filing period begins;
- Your first Statement of Information is due by November 8th 2019 (90 days from August 10th);
- The next Statement of Information is due every 2 years, due by your anniversary date (August 10th 2021, August 20th 2023, August 20th 2025, and so on).
You must not miss a filing deadline.
If you forget to file the Statement of Information with the Secretary of State on time, you will receive a notification. From the time you get it, the last grace period begins, when the situation can still be improved without any serious consequences. This period is 60 days.
If you fail to file within the 60-day grace period, you have to pay a $250 penalty.
Moreover, if you continue to ignore this requirement, the Secretary of State may administratively dissolve your LLC.
How to Complete the Statement of Information
According to the law, the Statement of Information for California LLC, also known as California form LLC-12, must contain the following main items:
- The official LLC name on record with the state;
- Type of business;
- 12-digit Secretary of State File Number;
- LLC’s business address and mailing address;
- Name and address for each member/manager (use form LLC-12A if necessary);
- The name and address of the registered agent;
- The CEO’s complete information;
- State, foreign county, or place of organization (foreign LLCs only);
- The name of the individual who completed the form and the date.
Despite the amount of details required, the California LLC Statement of Information has easy-to-follow instructions on how to complete and file it, so there is usually no problem.
Also, if you need to resubmit this form and the information has not changed since the last submission, you can save time by marking the “No Change Statement” option.
How to File the Statement of Information
Now, you have found the necessary documents, downloaded them and filled them out in a proper way. The only thing left to do is to send them. In the state CA LLC Statement of Information can be delivered in one of the following three ways:
Online
The fastest, easiest and most affordable option.
To apply online, you will need to:
- Visit the BizFile page, you can see it on the Secretary of State’s website;
- Choose the section concerning the filing of the Statement of Information for LLC;
- Find your company by using its name or number;
- Click on the name, selecting “Continue Registration”;
- Read the privacy policy and click “I accept” to move on;
- Fill out the form:
- If this is the first time you are filing a Statement of Information, all the fields will be blank. You will need to enter the appropriate information to complete them;
- If the Statement of Information has been submitted before, you can choose if there have been changes. To do this, you will need to review all of the fields and update the data in them, if necessary.
By Mail
To send materials by mail, download and fill out Form LLC-12 on your computer or by hand, then print it out. You must enclose a check or money order for $20 payable and mail everything to the Secretary of State at the address:
Secretary of State
Statement of Information Unit
P.O. Box 944230
Sacramento, CA 94244-2300
You do not have to pay if the purpose of submitting documents is only to update information in the records of the Secretary of State due to changes in the company. They are filed outside the statutory 6-month period.
In-Person
If you live in Sacramento or travel there, you can deliver documents in person. The office of the Secretary of State is located at:
1500 11th Street,
Sacramento, CA 95814.
As with the mail, you will need to pay a $20 fee, except for simply informing you of the change.
Thus, filing a CA Form LLC-12 is not complicated. However, it is very important to do it on time, without breaking the deadline. Otherwise, the company and its owners may face unpleasant consequences.
Can I Hire a Service to Handle it?
Considering the heavy workload on LLCs owners, many of them prefer not to risk and entrust their responsibility for maintaining official correspondence into the hands of a professional organization.
Working with the official documentation requires special knowledge and responsibility. Missing deadlines is not acceptable here. That is why a firm that will take on this responsibility and, among other things, regularly submit Statement of Information LLC, must be very reliable.
Of all the variety of online companies that provide business support services, the most respected are the following:
- ZenBusiness;
- IncFile;
- NorthWest Registered Agent;
- LegalZoom;
- SunDoc.
The important thing is that the services offered by such professional organizations are not only limited to providing you with a registered agent or assistance in opening an LLC. If you wish, they can also offer a whole range of other useful services that will make the process of doing business much easier. And all this at a very reasonable price, affordable even for startups.
How Much Does the California LLC Statement of Information Fee Cost?
When planning and starting a business, it would be wise to consider all possible company expenses in advance. As a rule, the most common ones include the following:
- For the creation;
- For name reservation;
- Operating expenses.
The last, i.e., the company’s everyday expenses for work organization and transformation of raw materials into finished products, usually include such expenses as:
- Utility bills;
- Purchase of consumables which are not directly related to the goods or services offered by the company, but are necessary for its activity;
- Rental fee;
- Remuneration of employees.
When you are summarizing, a Statement of Information is also worth including in this list. The cost may vary from state to state, but the California Statement of Information will cost only $20.
Does the State Send Reminders about Statement of Information?
If you have to handle a lot of information every day, or keep in mind a thousand different details, you can’t do without reminders.
Especially when it comes to the state.
Punctuality is extremely important when dealing with important official documents. Unfortunately, the Secretary of State does not remind you of the deadline for such documents.
When it comes to the Statement of Information, you can only rely on yourself.
If you are afraid of missing a deadline, then ask one of your subordinates to remind you about it. When the deadline comes up, mark the right date on your calendar or planner, or set an alert on your phone. These simple steps can actually help you avoid getting into trouble.