California Statement of Information vs. Annual Report: What’s the Difference?

Understanding all the different types of business documentation out there can be a challenging task. It seems that each U.S. state has its own set of rules—and, often, its own terminology—for the various kinds of filings it requires.

The California Statement of Information is one of these documents that often confuse business owners. No other state requires businesses to file something called a “Statement of Information.” So what is a Statement of Information, and why is it important?

The California Statement of Information is a mandatory filing for California-based businesses, serving a purpose similar to what is known as an annual report (or biennial report) in other states. Basically, a Statement of Information is just another name for an annual report. Having said that, however, it’s important to be clear on what an annual report is—and is not.

The following article from FastFilings is intended to provide some clarity for California business owners. Keep reading for more information on this important business document.

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Two Types of Annual Reports

An “annual report” can refer to different types of documents—this is another area that can cause confusion. The two types of annual reports most commonly used in the business world are:

State-filed annual reports, which include the California Statement of Information.
Shareholders’ annual reports, which are created by publicly traded companies for the benefit of investors, with the aim of disclosing an organization’s financial operations and plans for growth.

Now let’s take a closer look at these documents.

State Annual Reports

State annual reports are filings that businesses are required to submit to a state-level authority, generally either on an annual or biennial basis. These reports are mandatory for maintaining good standing with the state. Their primary aim is to provide the state with up-to-date information about the company’s structure and operations. They are very brief—one or two pages is the standard length.

Common elements found in state annual reports include:

Business Name and Address – The official name and primary location of the business
Names and Addresses of Officers and Directors – For corporations or members/managers for LLCs
Registered Agent Information – The contact info of the agent authorized to receive legal documents on behalf of the business
Nature of Business – A brief description of the business’s primary activities

FastFilings specializes in assisting businesses with their state annual reports, including the California Statement of Information. Our expertise ensures that businesses meet their reporting obligations, avoiding penalties and maintaining compliance.

Shareholders’ Annual Reports

Shareholders’ annual reports are documents that publicly traded companies distribute to their shareholders. These reports are designed to provide shareholders and potential investors with an accurate view of the company’s financial health and direction. They are much longer and more detailed than state annual reports.

Key elements of shareholders’ annual reports typically include:

Letter from the CEO or Chairman – Providing an overview of the company’s performance and future outlook
Financial Statements – Including the balance sheet, income statement, and cash flow statement
Management’s Discussion and Analysis (MD&A) – A review of the company’s financial performance, often discussing business strategies and future prospects
Auditor’s Report – A statement from independent auditors regarding the accuracy of the financial statements

The company is also expected to file a special version of this report with the U.S. Securities and Exchange Commission (SEC), using Form 10-K.

In summary, these two types of annual report s cater to different audiences and serve different purposes. Understanding the distinction between these two is important to avoid potentially costly errors. A California Statement of Information is not a shareholders’ report.

What Is in a California Statement of Information?

As we’ve seen, a California Statement of Information is what many other states call an annual report. It helps maintain transparency about who is responsible for a business, which can be important for legal, financial, and contact purposes.

The Statement of Information typically includes the business name and address, the names and addresses of its directors, chief executive officers, and, in the case of an LLC, its members or managers. It also lists the name and address of the agent for service of process—the individual or entity that receives legal documents on behalf of the business. Additionally, the form may request basic information about the type of business activities conducted.

The requirement to file a California Statement of Information applies to the following types of in-state businesses:

Corporations
Limited liability companies (LLCs)
Nonprofits
Agricultural cooperatives
Registered foreign corporations

This document is filed with the California Secretary of State. Corporations must file annually (including agricultural cooperatives), while LLCs and other entities have biennial filing requirements. There is a six-month filing window, determined by the calendar month of registration, in which the company must file its State of California annual report/Statement of Information.

The California Statement of Information becomes a public record once filed. This means anyone, including potential investors, partners, or customers, can look up basic information about the company’s structure and management.

If you’re confused about how to file a Statement of Information in California, FastFilings is here for you. With our online service, you have access to the easiest way to fulfill your Statement of Information filing requirements.

Apply for a California Statement of Information!

Need help filing your Statement of Information in California?

Get Started!