How to Start an LLC in California: Filing a Statement of Information

The Statement of Information (SOI) is a document that all LLCs in California are required to submit. It provides details about the business, including the names and addresses of its management and the nature of its business activities.

When Must I File a Statement of Information?

After registering a Limited Liability Company in California, the initial Statement of Information must be filed within 90 days. Subsequent filings are required biennially (every two years) from the date of the initial filing.

How Do I Fill Out a Statement of Information Form?

To fill out a Statement of Information Form in CA, you need to:

• Determine the filing period for your LLC based on the month of incorporation, registration, formation, or conversion;
• Download and fill out Form LLC-12 (LLCs) online at bizfileOnline.sos.ca.gov or by mail;
• Pay the filing fee of $50 online or by mail; and
• File your statement online, by mail, or in person at the Secretary of State’s office.

What Is the Process for Filing My Statement of Information?

You can file the Statement of Information by mail or, for quicker processing, online. For online submissions, visit the California Secretary of State’s website and navigate to the “Statement of Information Filing (Online)” section.

Will I Be Penalized if I Do Not File an LLC Statement of Information?

Yes, you will be penalized if you do not file an LLC Statement of Information in CA. The Secretary of State will give you a 60-day grace period (counted from the date you have been notified for failure to file), within which you must file the Statement of Information. If you fail to file within the 60-day grace period, you have to pay a $250 penalty.

The Franchise Tax Board may also assess additional penalties or revoke your tax-exempt status if your LLC is a non-profit corporation. A California attorney can help represent you in these situations.

Reminders About the Statement of Information

Mark your calendar! The state doesn’t always send reminders, so it’s up to you to remember the due date.

Staying organized and ahead of this deadline is essential to avoid any potential fines or complications. Consider setting up multiple alerts on digital platforms like your smartphone, email, or even task management apps after you start an LLC in California. Some business owners find it beneficial to keep a dedicated calendar solely for business-related deadlines. This ensures crucial dates don’t get overlooked.

Also, share this responsibility with a trusted colleague or team member so there’s a backup in place. Prioritizing these obligations keeps your business in good standing with the state.

What Is the Earliest Date I Can File?

California provides an option to file the Statement of Information as early as six months before the actual due date. At first glance, this might seem like just an extended deadline. However, this early filing provision offers a plethora of advantages:

• Reduced Stress: Business operations can be unpredictable. Having the flexibility to file half a year in advance provides LLC owners with ample time to prepare and submit their Statement of Information without last-minute hassles.
• Ensuring Accuracy: With more time at hand, businesses can be more diligent in ensuring that all provided information is accurate and up-to-date. Rushing through the process closer to the deadline might lead to unintentional errors, which can later become problematic.
• Financial Planning: Filing involves fees. By understanding your filing timeline well in advance, businesses can budget accordingly, ensuring there are no unexpected financial burdens.
• Avoiding Penalties: Waiting until the last minute poses the risk of unforeseen delays, which might push you past the deadline. Filing early ensures that you remain in compliance and avoid any penalties associated with late submissions.
• Peace of Mind: Perhaps the most significant advantage is the peace of mind. With the Statement of Information out of the way, businesses can focus on core operations, growth strategies, and other compliance requirements without this looming on the checklist.

While the state provides a window of six months, it’s advisable not to see this as a generous deadline but as a strategic opportunity. By aiming to file your Statement of Information at the earliest possible date within this window, you place your business in a position of proactive compliance. It also sends a message to stakeholders, partners, and even state officials that your business prioritizes its legal obligations.

Statement of Information Filing (Online)

You can file your Statement of Information online here. You will need to create an account and pay the filing fee of $50. You can also download and fill out Form SI-550 (Corporations) or Form LLC-12 (LLCs) and mail them to the Secretary of State.

Principal Office Address

Every business has a hub, a nerve center where critical decisions are made and strategies are created. The Principal Office Address is this hub for your LLC. State records must know where your primary operations are conducted, not just for official correspondence but for potential legal matters, too.

This should be the central location representing your business. When someone looks up your business, this address is what they’ll see. It gives transparency about where your main operations are.

Having a consistent Principal Office Address also helps in building trust with clients, vendors, and partners. It shows that your business has a stable location where operations are anchored.

Address – California Office

California is huge, and there might be instances where your primary operations are conducted outside the state while you maintain a satellite or representative office within. In such cases, the state requires you to declare this California-specific location. This ensures that there’s always a point of contact or an address where any official or legal communication can be directed within the state boundaries.

Management

The “Management” section requires you to list the names and addresses of all key managerial personnel. These are the people who make significant decisions and steer the direction of the LLC. In the absence of designated managers, the state wants to know the members who are at the helm, leading and representing the company. This transparency helps in legal clarity and accountability.

Chief Executive Officer

The CEO is often the face of the company, making executive decisions and playing a pivotal role in its direction and strategy. Providing the name and address of the CEO is not just a formality but a declaration of who holds this position in your organization. It also assists in clarity for any official correspondence or responsibilities that are typically directed toward the top executive.

Should I Contact an Attorney?

Starting a business in California can be tricky. If you’re thinking of setting up an LLC, having a lawyer by your side can make things smoother. They understand the rules California has for businesses, ensuring you fill out forms right and don’t miss deadlines. This helps you avoid mistakes that can lead to penalties.

Having a lawyer early on also prepares you for the future. As your business grows and faces challenges, they’ll already be familiar with it. They can quickly help with any new problems or decisions.

Plus, lawyers often have big networks. They can connect you with others in various industries who might be beneficial for your business.

So, considering a lawyer when starting is a smart choice. And with LegalMatch, finding a skilled California lawyer is easier than ever. Use LegalMatch to find a California corporate lawyer who can turn your business dream into a reality.