In several states…..when you start a business for the first time, setting up an LLC, C-Corporation or S-Corporation is not the end of the process. In California, for example, all newly formed corporations and LLCs are required to file an additional document, which is called an Initial Statement of Information. This initial statement is required to be filed within 90 days of the date that the corporation was formed. If not, the state of California might charge the corporation up to $250 in late fees.
The last thing new businesses need is an unexpected $250 fee from the state. Unfortunately, the state of California is making it just a bit more difficult for business owners to avoid incurring these late fees. Until recently, the State of California sent every newly formed corporation a convenient blank Statement of Information form, along with the due date to file it in order to avoid late fees.
But now, as of September 26, 2011, the state of California will no longer provide this courtesy documentation and reminder. This means it is now the sole responsibility of business owners to make sure their companies are in compliance in filing their Initial Statement of Information in time to avoid paying the penalty.
Why is California doing this? At the risk of sounding cynical or conspiratorial, I wonder if this latest announcement is related to the state government’s budget problems. (The state is probably trying to save a few dollars on printing and postage, and if this means that they end up collecting a few thousand extra late fees, so much the better!) But business owners need to be aware of this new little hurdle, and be prepared to overcome it.
CorpNet offers a convenient Initial Report filing service to help new business owners in California (and other states) to file their initial reports in a timely fashion and avoid paying any state late fees or penalties. If you’re starting a new business, chances are you’re so busy with the day-to-day details of finding customers and managing the operations that you don’t have time to deal with hassles like filing paperwork. CorpNet makes it easy, for a simple, flat fee, to avoid incurring the costs and headaches of late fees and penalties. Let us take this worry off your mind (and give you one less thing on your to-do list).
How much does it cost to file an Initial Report with CorpNet?
CorpNet.com charges $69 to file Initial Reports for new corporations, along with the required $25 state fee for Corporations and $20 state fee for LLCs. (The state fee money goes to the state government – you pay this amount whether or not you hire CorpNet to file the documents for you.)
Which states require Initial Reports or Statements of Information to be filed for new businesses?
Here is the full list:
- New Mexico
Some states call these reports “Initial Reports,” others call them “Statements of Information.” Exact details and deadlines vary by state, but CorpNet can get the filings done on time no matter where your business is located.
Why should I hire CorpNet to file these forms? Can’t I just do it myself?
Ask yourself a question: how much is your time worth? Chances are, it would take you at least an hour to deal with filing the paperwork, driving to the Post Office, or dropping off the files at the relevant office. Instead of taking time away from your business, CorpNet can take this chore off your to-do list. You can probably make more than $69 with the time you save by hiring CorpNet. Plus, our reliable, proven document filing process ensures that your paperwork gets filed on time, every time – no hassles, no unpleasant surprises, no late fees.
After the Initial Statement of Information, are there any other late fees to worry about?
In all states except Alabama and Ohio, Corporations and LLCs are required to file an Annual Report or Annual Statement of Information to show that they are still a registered business in good standing. CorpNet can take care of these filings as well, starting at $69 plus the state fees.
The requirements vary by state. For example, LLCs in California are required to file a Bi-annual Statement of Information – every two years. The CorpNet fee for this service is also $69, and the state fee is only $20 (every two years) for LLCs.
Running a business is all about staying on your toes and staying ahead of the game. CorpNet can help you avoid some of those little hassles and fees along the way. Don’t wait until it’s too late – talk to us today about how we can manage your Initial Report and Annual Report filings and help you keep more of your money.