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.
On this page, you’ll learn about the following:
- Contents of the Annual Report
- California LLC Biennial Report
- Does the State of California Require an Annual Report Filing?
- Why Do LLCs Have to File the Annual Report?
- How to File a California LLC Biennial Report
- Seek the Help of a Registered Agent
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.
- 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.
- 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.
- 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.
- 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.
- 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:
- Streamlining the mandatory processes & filing.
- Sending or receiving any documents.
- Reminding you about important dates of filing or payment of taxes.
- Simplifying the filing procedures.
- Avoid any penalties.
- Flexibility in working.
- 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
How fast can I fill out the California LLC Annual Report? Every two years, the California Secretary of State requires that an LLC file this form. You can find out the date and month of the anniversary by using the California Business Database. Once you have that information, you can proceed to fill out the Form. It should take less than an hour to fill out and is a simple process once you have all the information. The deadline for filing the Form is January 1st.
The California LLC operating statement contains the same information as the articles of organization, but requires more detail. This report is required to be filed with the Secretary of State so that the state can check that it’s in compliance with the law. The form asks for information about the LLC’s name, address, registered agent, and street address. You can find this information by following the instructions provided in the video. You can also complete the form on your own, although some minor changes have been made recently.
Before filing the form, you must obtain an EIN. This number is a unique identifier for your business, and you need it for bank accounts, income tax filings, and employment tax returns. Obtaining an EIN is not difficult and you can apply for one online or through the mail or fax. Do not pay for your EIN. It’s a legal requirement for businesses to have an EIN.
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.
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.
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.
The most important thing for filing an Annual Report is record keeping. Make sure that you document every other transaction well.
Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing.
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.