Those who form an LLC in California will need to complete numerous documents not just at the start of the process when forming it but throughout the lifetime of owning the LLC. One of those reports is an annual report, also called an information sheet. Most states require these statements. California requires both an initial Statement of Information and a biennial Statement of Information after that. It is a requirement – failing to do so could result in fines. Here’s what you need to know about these reports.
An annual report in most states is a document that outlines the general information about your LLC. It also includes any changes that have occurred over the previous year, or in the case of California, the previous two years.
The state of California requires this report to determine the company’s current status. Additionally, it can provide the state with information to determine if the business is operating under state requirements.
The purpose of an annual report is simply to share information with the state about the LLC. It allows you to share the requested and required data with the state about your company. It also helps publicly disclose your business information and some conditions that have changed over the previous years.
This report typically provides information about the current ownership of the LLC, the setup of the business, and any other changes to the previous annual report or Statement of Information.
In California, there is a $20 filing fee for the annual report paid by your business to the Secretary of State.
It is also important to note that California requires that all organizations send in an updated Statement of Information if there are significant changes to their operation, even if it is not yet required to send in the biennial report. For example, if your registered agent changes or members of the LLC change, it is a requirement to update your information with the state.
Understanding what is in this report is important. Most of the information is very technical and basic, but it is still essential to get it right. This report includes:
In California, LLCs must file their initial information statement within the first 90 days of filing their Articles of Organization. Most of the information for this statement comes right from your Articles of Organization. In addition to that, you need the names and addresses of all LLC members and managers. After this initial filing, you will need to file this document every two years.
Unlike other states that require an annual report, in California, this report needs to be completed every two years. You have to do so by the end of the anniversary month of your LLC filing. For example, if you established your LLC on March 12th, you have until March 31st to complete your Statement of Information.
In California, you can file this report early. In fact, the state provides a six-month window for filing the state of information ending on the last day of the month of your anniversary filing. You can file it any time in that six months to meet the requirements. For example, if you established your LLC on March 12th, 2022, you have to file a Statement of Information again by March 31st, 2024, but you can do so anytime after October of 2021.
The state of California allows you to file both your initial Statement of Information and all others online. This is the way the state prefers that you send in this information because it is more efficient for them (and you, too!).
You can complete the Statement of Information on the Secretary of State’s website: bizfileOnline.sos.ca.gov. Specifically, click here to go to the Statements of Information site, where you can click a link and follow the specific steps to complete the form.
To complete this filing, you need to pay a $20 fee to the state. That is done using a credit or debit card when making the payment online.
The second option for completing your Statement of Information is to send the completed document through the mail. You can access the necessary form on the Secretary of State’s website. Most businesses will want to establish an account on the site for easy management of their business information. Once you have the form, download it, complete it, and then send it to:
Secretary of State
Statement of Information Unit
P.O. Box 944230
Sacramento, CA 94244-2300
The same $20 filing fee is required and must be sent with your statement through the mail.
The Statement of Information form requires information that typically is contained in your Articles of Organization. This includes your business address, the names of all Members and Managers, their contact information, and details about what the business does. You also need to provide updated information about your Registered Agent and any other changes that have occurred to the business since its formation.
There is a lot of detail to include in the Statement of Information. You do not have to complete this yourself if you choose to have a company like ours help you. We provide Annual Compliance. This helps ensure that you meet all state requirements throughout the year – and there could be others associated with your business.
If you use our service, we will complete the proper forms and submit them to the Secretary of State in California for you. We handle the entire filing process, so there is nothing that you have to worry about when it comes to managing your LLC with the state. It is fast and simple to use our service, and you really do not have to think twice about doing so.
This is one of the biggest problems for LLC owners. They lack the time or do not remember to take these required steps. The state does not send information to remind you to complete this information. More so, it is your responsibility to do so.
If you failed to do so, you could face a few outcomes:
The most common occurrence when the Statement of Information is missed is the requirement to pay a fee. If you are a profit-based business, the fee is $250. If you are a non-profit organization, the fee is $50. This fee can add up every time you miss your filing – and keep in mind that you still have to file the Statement of Information and pay the filing fee for doing so ($20).
In some situations, the state can take additional action. For example, in some situations, the state may place restrictions on operations until you file this information.
Often due to long-term missing of the filing deadline or just not filing the Statement of Information at all, the state may suspend or forfeit your LLC’s registration. When it does this, it will prevent all legal business with your company. That may mean that you have to shutter operations depending on the state’s ruling.
There is no doubt that completing the Statement of Information through the California Secretary of State website is a critical step in managing your LLC. It does not have to be a complex process, especially if you complete it online through the state’s business portal. Yet, you have to remember to do it, and you cannot forget to update this information over time. For that reason, it is often best to utilize our services to help you complete all the state’s annual reporting requirements.
Filing accurate annual reports is a must in California to avoid fees. To ensure you do not miss any information, set up reminders or allow our team to help you complete the requirements.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.
Shai Shmarel started his life as a corporate lawyer before switching to being an SEO and Content Manager at Tailor Brands. He has experience in managing companies, rankings SERPs and covering a content-driven approach for all things legal, business and marketing. When off work, you’ll usually find him chilling with a cup of coffee and a book in the desert.
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