1: Missing the Filing Deadline
One of the most frequent mistakes is filing late.
What Is the Statement of Information Due Date?
For most California corporations and LLCs, the initial Statement of Information is due within 90 days of registration. After that, it must be filed:
- Every year for corporations
- Every two years for LLCs and most nonprofits
If you fail to file by the deadline, the state can assess a penalty.
What Happens If You File Late?
Late filings can lead to:
- Monetary penalties
- Loss of good standing
- Suspension or forfeiture by the state
“Good standing” means your business is legally compliant and authorized to operate in California. Without it, you may have trouble getting loans, renewing licenses, or entering contracts.
How to Avoid This Mistake
Set calendar reminders well before your due date. Confirm your specific filing schedule through the California Secretary of State website. If your business recently changed structure or ownership, double-check your reporting cycle.