What you’ll discover:
What Is an Information Statement?
What Details Must Be Included on a Statement of Information Form?
Why Is It Essential to File on Time?
Your business may be required to submit an annual or initial report with the state. Most states require these reports, which will keep your company in compliance.
What Is an Information Statement?
A Statement of Information is required to be submitted in order to disclose your company’s activity throughout the previous year. This information is often most useful to shareholders or other individuals with an interest in your business. The activities described on the statement, as well as the financial performance, will be used to gauge how effectively the firm is run and, more crucially, how well the company’s operations are doing.
Filing is often needed on a yearly basis, however this varies by jurisdiction. If your firm is publicly traded, the standards for these long reports are frequently more stringent. Additionally, being listed on the stock market often entails the need to provide a Statement of Information form at more regular intervals, such as quarterly reports.
Table of Contents
What Details Must Be Included on a Statement of Information Form?
As previously indicated, the information necessary in your state may vary from that required in another state. The usual Statement of Information, on the other hand, will include:
Accounting principles
Financial statements
Statements of cash flows
Profit and loss statements
Report of the Director
A summary of activities and financing
Report of the Auditor
A Statement of Information will also request the names of a company’s management, directors, and members. If your state needs an initial report, this statement will often be quite brief and will not contain any or all of the items described above.
It should be mentioned that filing is normally necessary once a year or twice a year. Normally, a charge will be levied, which varies widely from state to state.
Why Is It Essential to File on Time?
In most states, filing is required. Most significantly, submitting on time ensures that your organization is constantly in compliance. If this is your first year in business, you should check with your state to see when filing is required. If you do not file on time, your firm may be subject to the following penalties:
Penalty fines, as well as a notice of delinquency
Your company will be suspended, as will your ability to use your entity name.
Maintaining a good standing is critical if you want to continue your business. If your company has not yet identified its members, officials, or directors, a statement must still be submitted. Updates may be made the following year to remedy any errors found in your original report.
If your state needs a Registered Agent, this information must be included on the form. If you’ve changed Registered Agents, you must submit a new Statement of Information with the updated information for the Registered Agent.
It’s a good idea to start the year by complying with the law so you can get on with other vital things, such as operating your company.