California LLC Annual Report – File an LLC Annual Report in California


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The objective of the annual report is three-fold. The annual report keeps the Government informed about all the updates, communicates about all the modifications or changes, & keeps the LLC members informed about the necessary taxes and costs. This article has all the information about California LLC annual report filing in California.

An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This yearly report is a record of all the company’s activities in an entire year. It is also referred to as the Annual Franchise Tax Report because it helps in filing the franchise tax.

Contents of the Annual Report

Typically the annual report filed by a California LLC (or any other business entity for that matter) will include all the information related to its business & members. The standard contents of the annual report  or the annual franchise tax report are

  • Office Address of the LLC
  • Names & Addresses of the Members & managers.
  • Identification Documents
  • Social Security numbers of the key members of LLC
  • The objective of the business of LLC
  • List of all the signatories of the LLC
  • Information of the registered agent, if any

California LLC Biennial Report

Unlike all other states, LLCs in California have to file a “Statement of information” California. Not only LLCs but other corporate entities are also bound by this rule. When a particular business entity has to file the Statement of Information depends upon the kind of business entity you have. 

The statement of Information is to be filed with the California Secretary of state by the business corporations, LLCs, and non-profit organizations. 

Does the State of California Require an Annual Report Filing?

The State of California does not have any Initial Report Requirements. But, it is mandatory to file the California statement of Information with the California  Secretary of State. 

Although a Limited Liability Company is not required to file an Annual Report with the California Secretary of the State, a Biennial report, the statement of Information & some other periodic reports will have to be submitted. This periodic report has to be filed with the secretary of the State.

All the legal entities such as C Corporations, Limited Partnerships, Limited Liability Companies are bound to file the Statement of Information, which acts as a Biennial report. An LLC has to file a Biennial Report with the secretary of state.

Biennial Report Deadline

The Statement of Information must be filed every two years by the last day of its anniversary month. In case you don’t remember the exact formation date of your LLC – for calculating the anniversary month, you can find it on the California Business Database, and then you can calculate the anniversary date of the LLC.

Penalties for Non-filing or late filing

As mentioned earlier, it is crucial to file the Statement of Information with the Secretary of State in California for every entity. This filing is so important that there can be penalties for non-filing the Statement of Information. The non-filing penalty or the late filing penalties of the Biennial report, charged by the Secretary of State, is $250. Most States charge additional penalties in case of a lapse in a filing. California  Authorities have the power to dissolve the LLC in certain circumstances, where the Biennial report has not been filed for a longer duration. 

Why Do LLCs Have to File the Annual Report?

Some of the states are not required to file this yearly report, commonly known as the Annual Report. However, there are some reasons why states should file an LLC Annual Report. Here are some reasons,

To Maintain the Accuracy of the Information

An annual report filed by the LLC has all the updated information about its official addresses & the names or addresses of all its officials. This updated information allows the State authorities to track down any LLC when communicating.

To Provide the Correct Correspondence

Many times, any creditor or other entity willing to transact with the LLC requires the correct correspondence address. If this information (which can only be modified with the help of an annual report) is not updated every year, such entities will not be able to communicate with them.

To Notify the Government About All the Significant Changes

If you have changed your main business address or had new business appointments of managers or members, the annual public information report notifies the State Government Entities about it. So, the next time someone questions a newer reform that you have introduced in your LLC, you will be saved because you had submitted the information with the Government.

To Provide an Activity Log of an LLC

The Annual report is like an activity log of the LLC. It brings on record; all the transactions, new associations, appointments, etc. & keeps those records intact for all future references.

To Help You With the One-time Filing of Taxes

The annual report is an excellent means to keep you on your toes in case of your dues payment. Every LLC must pay the taxes through the annual report filing. By filing the report on time, the LLC can manage the exemptions & can avoid penalties imposed by the Government. 

To Enable the State to Track the Payments

The government authorities use all the information filed through the annual report, for tracking the payment of State Taxes.

How to File a California LLC Biennial Report

The California Statement of Information can be filed online, in person, or it can be filed by mail. The Annual Report or Statement of Information must be filed every two years by the last day of its anniversary month.

Steps to File California LLC Biennial Report Online

Time needed: 5 minutes.

Following is the procedure to file the Biennial Report (Statement of Information) online.

  1. Visit the California Secretary of State Website

    Your first step to filing a Biennial Statement of Information in California is to visit the California Secretary of State website & click on the tab titled Business.california-llc-aanual-report

  2. Click on “LLC Statements of Information File Online”

    Once you open the Business tab, you will be directed to the page called Business Programmes. Under that title, you will see ‘Hot topics’, please select the LLC statements of Information file online option from that list.california-llc-annual-report

  3. Search with LLC name or Entity Number.

    Upon clicking on the LLC Statements of Information, you will see the following page. You can search with your LLC name or with the LLC entity number to see the filing status.california-llc-annual-report

  4. Select your Business from the list

    When you see the list of businesses that match your search keyword, choose your business entity. Please check the name & spelling properly before proceeding further. Then, click to confirm that you have selected the right entity & you have the right to file the statement of information.

  5. Click on the File a Statement of Information link.

    The last step to filing the statement of Information is to click on the file a statement of Information link- listed under ‘Available Filings’.

Filing California LLC Biennial Report By Mail

To file the Biennial Report in California by mail follow the below steps,

  • Go to the California Secretary of State Website.
  • Click on the Business Tab.
  • Click on the Forms, Samples & Fees tab under the heading Business Programs.
  • Click on the Business Entities link.
  • You will come across a page that shows all the filing methods & links to required forms. Scroll down to the option of file in person or mail.
  • Click on the Locate the Form option.
  • Choose Limited Liability Companies – Statement of Information form – in the list. Here are a few filing tips for Statement of Information.
  • Depending on when you are filing the Statement of Information you will get two versions of forms of filing Statement of Information. If you are filing prior to January 1,  2022,  then there is a different Form LLC-12 & if you are filing after December 31, 2021, then there is a another Form LLC-12
  • Send the printed copies of the forms and documents with the $20 fees to the address: California  Secretary of State, Statement of Information Unit, P.O. Box 944230, Sacramento, CA 94244-2300

California LLC Biennial Report (Domestic & Foreign)

State Office:California Secretary of State, Statement of Information Unit, P.O. Box 944230, Sacramento, CA 94244-2300. Links to Website, Forms, File & Pay
Due Date:Every two years, by the last date of the Anniversary Month.
Filing Fee:The filing fee of the California Statement of Information (Online, in person, or by mail) is $20.
Penalty:The California  Secretary of State charges a $250 penalty on a report that is filed late.
Filing Method:An LLC can file the report Online, in person, Or by Mail at: California  Secretary of State P.O. Box 13528, Capitol Station Austin, California  78711-3528
Forms:The form to file the Statement of Information can be found on the link: Form LLC-12.
Important Information:Once a Domestic or Foreign California Limited Liability Company submits the Statement of Information or the Biennial Report along with the prescribed fees to the California Secretary of State, the filing is said to be complete.

Seek the Help of a Registered Agent

Every State will have a different rule for filing the Annual Report. Usually, it is submitted every year, but it is submitted once in two years in some states. Some states require the filing of the report only once in ten years.

Not only the timing, the mode of filing, the proper addresses, exemptions, legality, annual report compliance, etc., have to be taken care of while paying the taxes or filing any reports with the State authorities. In many such scenarios, it is advised that an LLC appoints a Registered Agent to manage all this. Check out the best LLC service that offers all the services at an affordable price. An experienced agent is required for:

  1. Streamlining the mandatory processes & filing.
  2. Sending or receiving any documents.
  3. Reminding you about important dates of filing or payment of taxes. 
  4. Simplifying the filing procedures.
  5. Avoid any penalties.
  6. Flexibility in working.
  7. Maintaining Privacy (as it keeps your personal records off the public record)

You can read more about an Alaska Registered Agent here.

How Fast Can I Fill California LLC Annual Report

Deadline for filing the annual report for California LLC is the first day of the month following the company’s registration anniversary. You can file it up to 6 months before the due date.

If you own a California limited liability company (LLC), you will need to file a statement of information every year. You can file this document online or by mail. However, if you fail to file within the state’s required time frame, you will be charged a penalty. The state also has the right to suspend your LLC’s registration. This can affect your business operations.

When preparing your Statement of Information, you must include some basic details about your LLC. For example, you will need to enter the name of your LLC, its jurisdiction, and the SOI number. To make this process easy, you can use an online form.

You will also need to provide the physical address of your company’s principal executive office. Be sure to use a zip code. This is the address you will use on your business tax return. While you are completing this form, you may want to consider hiring the services of a registered agent. These experts can help you keep your business in compliance with all states.

You may not have to pay a fee for filing your annual report if you are a single-member LLC or have no employees. However, if you have a non-profit organization, you will have to pay a $50 fee. Depending on your business, you may also need to register with the California State Board of Equalization for sales or employer taxes.

When preparing your statement of information, you should review all of the information you have entered. Make sure to keep this information up to date. It is also a good idea to check your filing records. Once you receive a stamped and approved copy of your Statement of Information, you can keep it in your business’ records.

In addition to the statement of information, you will need to pay a franchise tax. This tax is due around the same time that your annual report is due. Depending on the type of business, you may be required to register with the California Employment Development Department for employee taxes. Another reason to keep up with your annual report is to be able to share up to date information about your business with the state.

Some registered agents also offer annual report compliance services. They will monitor your company’s filings and send you reminders to submit your annual report on time. There are many benefits to using a registered agent, including a professional customer service team, a low monthly fee, and automatic email reminders.

Most states require LLC owners to file an annual report. California is no exception. Typically, an authorized officer of the LLC files this document. It is also called the statement of information in other jurisdictions. As long as you follow the proper filing requirements, you should be able to submit your document and receive an approved copy in a matter of days.

If you have questions about how to prepare your statement of information, you should contact the California Secretary of State or the California State Board of Equalization. Several online services also help you complete this task.

FAQs

Is it essential to file an Annual Report?

Yes, an annual report is essential for every business entity in most states. Some states also ask to file biennial or decennial reports to be filed.

What are the contents of the Annual Report?

A Yearly Business Report or the annual report typically incorporates the address of the business, names & addresses of the members, a list of all the signatories, SSN of the members, & details of the registered agent.

Why is hiring a Registered Agent necessary in filing the Annual Report?

A Registered Agent is well-aware of all the filing requirements, annual report filing fee, & overall Annual Report compliance. The knowledge & proficiency of the registered agent allows the smooth filing of reports & other fees.

What do I have to do for the annual business report preparation?

The most important thing for filing an Annual Report is record keeping. Make sure that you document every other transaction well.

Do the filing fees change as per the types of companies?

Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing.

In Conclusion

In conclusion, we can see that the annual report – which is also called the Franchise Tax Public Information Report is much easy to be filed. However, it is mandatory to file the report on time to avoid any penalties. If you are running an LLC in the state of California, you have to comply with the filing of certain important documents including the annual report or the Franchise Tax Public Information Report as it is named in the state of California.

It is also important to note that once this Public Information Report is filed with the Comptroller of Public Accounts, there is no need for additional filing with the secretary of state.

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