Statement of Information: Everything You Need to Know
A Statement of Information is information that a company files to divulge the business's activities over the previous year.3 min read
2. Definition of Statement of Information
3. Necessary Details to Include in a Statement of Information
4. Submitting the Statement of Information
5. Initial Statements
6. The Importance of Submitting a Statement of Information on Time
What Is a Statement of Information?
A Statement of Information is information that a company files to divulge the business's activities over the previous year. It's information that shareholders and others with an interest in the business find the most use for. The statement can show interested parties details about business operations as well as how well the company is being run.
Definition of Statement of Information
A Statement of Information is important to anyone who has concerns in the company. The Statement should disclose the company's activities over the previous year. It will disclose this information by including financial performance. This helps invested parties see how the business is being managed.
The Statement is filed annually by most states, but this schedule may be different in some states. Businesses that are listed on a stock exchange may have more requirements to meet when submitting a Statement. These companies may have to provide information more frequently, such as quarterly.
Every corporation and LLC in California submits a Statement of Information annually. They submit it to the Secretary of State along with a processing fee. Fees are as follows:
- Corporations $25
- LLCs (foreign and domestic) $20
- Nonprofit corporations (domestic) $20
- Charities $0-300 (the amount varies based on how much revenue was raised)
It's important to file your Statement of Information on time. Failing to do so may result in a much higher fee of $250 or the suspension of your corporation.
Necessary Details to Include in a Statement of Information
The required details may differ by state, but regular details that you must include are:
- Balance sheets
- Accounting policies
- Profit and loss reports
- Cash flow statements
- Director's report
- Auditor's report
- An overview of operations and finances
If you need to update company details, such as a change to your registered agent, you can do it through this form.
Submitting the Statement of Information
There are a couple of ways that you can file the Statement of Information for your business in California.
- Online: Search the business name, and then enter your business and credit card details to pay your fees.
- By mail: You can visit the Secretary of State website, find the Annual/Biennial Statement page link, and download the form. Complete it and deliver it with the fee.
Mail your form and payment to:
Secretary of State
Statement of Information Unit
P.O. Box 944230
Sacramento, CA 94244-2300
Online filing is the recommended option. Not only is it very convenient, but the state can take a long time to process mailed statements. You don't want to end up paying a late fee if officials don't get to yours in a timely manner.
Important details that you must include in your Statement of information are:
- Name and address of the company
- Name and address of the officers
- Description of your work
- Name and address of your California agent for service of process
Any business or LLC that's registered to do business in California must submit a Statement of Information even if it has not begun operations yet.
An initial Statement of Information must be submitted by newly registered LLCs and companies within 90 days of initial operation of the company in the state of California.
The Importance of Submitting a Statement of Information on Time
It's very important to file your Statement of Information with the Secretary of State on time. This helps to keep your business in good standing. Failing to file a Statement on time may result in a penalty fee. The Secretary of State may issue your company a notice of delinquency if you don't file in a timely manner. Other consequences could include suspension of your business along with the right to use your business name.
You must file a Statement even if you haven't yet finalized your list of directors, officers, and members of the company. If your company details aren't finalized in your initial Statement, you can update them with the correct information the following year.
It's important to file your Statement of Information and pay related fees on time when they're due. This helps to keep your business entity in good standing with the state, which is essential for maintaining day-to-day operations.
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