It’s time to file your Statement of Information. You may think that this is just a formality, but it’s more than that—it’s an opportunity to be transparent and accountable to the State of Security. When you do it right, you’ll set the tone for your organization for years to come.
The Los Angeles statement of information is a public document that provides the State of Security and the public with information about your organization’s leadership structure and financial status. It also outlines your organization’s mission and goals, as well as the programs you offer to the community.
But why is it important? Keep reading to find the reasons:
It’s the law
Every state has its own laws that require all businesses to file a statement of information. The purpose of this filing is to let the government know who is running the company and what their roles are. It’s also used for enforcement purposes.
If you’re an officer or director of your business, then filing a statement of information is required by law as part of maintaining good standing with the State of Security and abiding by its rules and regulations.
It ensures the public knows who runs your business
Filing a statement of information with the Secretary of State is important because it ensures the public knows who runs your business and that you are in good standing. If someone wants to do business with your company, they can check with the Secretary of State’s office to make sure that everything is on the up. This helps protect consumers from fraudulent businesses and also ensures an open marketplace where companies compete fairly for customers’ attention and money.
Protect your personal assets
Filing a statement of information protects your personal assets by identifying to creditors, potential creditors, and others that you are not hiding assets. This provides notice that the debtor has filed for bankruptcy and is not trying to hide their money in the guise of another entity. If a creditor discovers that an individual has filed for bankruptcy and does nothing about it, they may be able to recover damages from them for failing to do so. However, if an individual were told about the status of their debts or assets by filing a statement of information, then there would be no reason for them not to act on it.
It is a requirement to stay in good standing with the State of Security
Most importantly, filing your statement of information is a requirement to stay in good standing with the State of Security. If you fail to file on time and are found in default, you may be subject to fines, increased fees, and other penalties. In addition, you will be prohibited from doing business in California and will not be able to obtain a license for any other type of business until your delinquency has been cleared up by filing an acceptable late statement of information.
Do it right and have it on time.
You’re probably thinking, “I have nothing to hide. Why do I have to file a statement [of information]?” The answer is simple: because it’s the law. Failing to file an SOI can be extremely costly if you fail to pay your taxes or get caught not filing.
Filing an SOI will help keep the CRA informed of your current situation so that they can better assess what deductions are applicable and how much tax should be paid on each return. It also shows that you’re working with them and helping avoid any penalties in the future. If any debts are owed, having this information posted publicly helps creditors and collectors know how serious those debts are—and could save you from garnishment or other legal action by posting accurate data about yourself online.
Conclusion
We hope you find this information useful and encourage you to learn more about the statement of information. We also recommend taking advantage of our free online filing service if it’s still confusing.
