Financial Glossary
California Statement of Information
A California Statement of Information is a mandatory filing submitted to the California Secretary of State by corporations (annually) and LLCs (every two years), or within 90 days of initial formation. It discloses the entity's principal address, registered agent, and names and addresses of officers or managers. The state uses this data to maintain accurate public records. Late or missed filings can result in a $250 penalty for LLCs and suspension of the entity's legal powers, which can void contracts and block banking transactions until the filing is cured.
Problem & Application
A campground operator forms a California LLC in March and pays the initial filing fee, then forgets the biennial update. Two years later, the Secretary of State suspends the LLC for failure to file. The owner discovers the suspension mid-season when a bank flags an account issue. Reinstating requires filing the overdue Statement, paying the $250 penalty, and potentially filing for a Certificate of Revivor -- a process that can take weeks. For owner-operated properties where the LLC holds title to the land, suspension creates lender-notification obligations and title risk. Parikh Financial tracks entity-compliance calendars for clients across California-registered holding companies and operating entities, triggering reminders 60 days before each due date to prevent suspension.
In Short
Regularly updating the California Statement of Information is a straightforward yet essential task for maintaining regulatory compliance and protecting a company’s legal status.