A statement of information is an annual report that is filed by business entities with the business' current information. While most states require this report, it goes by many different names, including a biennial statement or an annual report.

Why is it important?

Since each state has its own nuanced program for filing a statement of information, we will use California as the example in this article. In California, the Secretary of State regulates the statement of information. If it is delinquent, they notify the Franchise Tax Board which will then assess the penalty.

But you aren't just looking at a fine if you fail to file your statement on time. Your entity could also face suspension or forfeiture. Once an entity has been suspended by the Franchise Tax Board, only the Franchise Tax Board can reinstate it.

Additionally, until a company's status is returned to active, it cannot conduct business in the State of California. It also can't sue in California courts. Worse yet, the business is unable to defend itself from a lawsuit in a California court of law.

What purpose does it serve?

A statement of information provides the governing authorities with current information such as officers, mailing address, and physical address. It will also provide details on the business's registered agent. 

A registered agent is the person or company designated to accept legal documents on behalf of the business. 

If you want to know more about your business' statement of information filing, click here to schedule an appointment with one of Gold Standard's experienced bookkeepers.

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