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Secretary of State Certificate Penalty for LLCS

Purpose of bulletin

To inform staff beginning June 23, 2010, we began assessing the certification penalty of $250 for failure to file a Statement of Information for Limited Liability Companies (LLCs).

Background

Business entities are subject to a certification penalty for failure to file a Statement of Information with the Secretary of State (SOS) biennially. Previously, SOS had the authority to assess the certification penalty, but system constraints prevented the ability to do so.

Approximately 510,000 LLCs have been identified as potentially being subject to the certification penalty. The SOS is required to send notification at least sixty days before assessing the penalty. We issued the first certification penalty notices on June 23, 2010.

Additional Information

The certification penalty date on the billing notices will be the calendar year ending for the year the penalty is assessed.

The LLC is assessed one penalty for the entire period of noncompliance with the requirement to file the Statement of Information.

Example

ABC LLC registered January 1, 2001 and has never filed a Statement of Information with the SOS. In June of 2010, it was assessed a certification penalty for failing to file the statement.

Taxpayer Inquiries

Taxpayers can go to sos.ca.gov, and search for statement of information, or call the SOS at 916.653.6814.