If you have a limited liability company (LLC) In California, you must file a statement of information to keep your business in good standing. But don’t worry – it’s a relatively painless process that can be done online.
Read on to learn how to file your LLC’s statement of information in California.
What Is a Statement of Information?
A statement of information, known as an annual report in most states, simply verifies your business information and tells the state of California that your LLC is still operating.
Keeping up with statements of information is a legal requirement that enables you to obtain a Certificate of Status, which a bank or creditor might request to confirm your compliance.
In California, the following information is required for the statement of information:
How to File a Statement of Information in California
To file your statement of information in California, visit the Secretary of State’s website and enter your business entity number.
The fee for filing your statement of information is $20, and a $5 disclosure fee. Reports are due every two years within 90 days of the anniversary of your LLC formation.
If You Do Business in Other States
If you do business in other states, be sure to register in those states as a foreign LLC. For example, if your LLC is registered in California and you start doing business in Florida, you’ll need to register in Florida as a foreign LLC.
You’re generally required to register as a foreign LLC if:
- You have a physical presence of any kind in that state
- You have employees in that state
- You regularly meet with clients, managers, or investors in that state
- You are licensed to do business in that state
Once you’ve registered as a foreign LLC, your business will need to follow the annual reporting requirements of that state and pay taxes in that state.
In Closing
Filing a statement of status in California is relatively easy and crucial to smooth business operations.
Failing to file a certificate of status can result in serious penalties, as can filing an inaccurate report.
Be sure to review all your business information and file your report on time to ensure your LLC remains in good standing.