Whether you are a small or large corporation, it is critical to be in compliance with the Secretary of State to avoid unnecessary fees or a suspension of your entity.
In California, all entities registered with the Secretary of State are required to file periodic updates:
- Corporations must file an annual statement of information
- LLCs must file biennially (every two years)
How to Check Your Entity Status
To ensure your entity remains in good standing, regularly check the Secretary of State website to confirm your filings are up to date and your status is Active.
In California, you can verify an entity’s compliance and filing history online at https://bizfileonline.sos.ca.gov/search/business. The filing fee is minimal—typically $20 to $25. However, failing to meet these requirements can result in a $250 late fee and, worse, suspension of your entity.
Consequences of Suspension
When an entity’s status is suspended by the Secretary of State, the process of reactivating it is both time-consuming and expensive. Reinstating Active status can take approximately from 2 months to 6 months and often requires extensive consulting support. During this time, your business may face:
- Increased administrative costs due to legal and consulting fees.
- Operational disruptions, as a suspended entity cannot legally conduct business in California.
- Legal complications, including potential liability issues. Always consult an entity attorney to understand the risks associated with operating under a suspended status.
The information provided in this blog post is for general informational purposes only and is not intended as legal advice. Every business and financial situation is unique, and the strategies discussed may not be applicable to your specific circumstances.
For personalized guidance, please schedule a consultation appointment with a Principal at Bernstein Financial Services to help you determine your optimal planning strategies.