What Is a Statement of Information?
A Statement of Information is filed to divulge your company's activities over the prior year. This information is often most important to shareholders or other parties that have an interest in your company. The activities listed on the statement as well as the financial performance will be used as an indicator to how well the company is being ran and more importantly, the company's operations.
Filing is often required on an annual basis, but this may change from one state to another. If your company has been listed on a stock exchange, the requirements for these lengthy reports are often more robust. Furthermore, being listed on the stock exchange often comes with the responsibility of providing a Statement of Information form on more frequent intervals, such as quarterly reports.
What Is Required on a Statement of Information Form?
As stated previously, the required information in your state may be different than another state. However, the typical Statement of Information will include:
- Accounting policies
- Balance sheets
- Cash flow statements
- Profit and loss accounts
- Director's report
- An overview of operations and finances
- Auditor's report
A Statement of Information will also call for the names of managers, directors, and members of a company. If your state requires an initial report, this statement will often be very short in length and will not include some or any of the above mentioned points.
It should be noted that filing is usually required on an annual or biennial basis. Typically, there will be a fee assessed, which will vary greatly from state to state.
Why Filing on Time Is Important
Filing is mandatory in most states. More importantly, filing on time will ensure that your company always remains complaint. If this is your first year in business, you'll want to consult with your state to determine when filing is needed. If you don't file on time, your company may face the following consequences:
- Penalty fees along with a notice of delinquency
- A suspension of your business along with the right to use your entity name
If you plan to continue on with your operations, maintaining a good standing is essential. If your business has not determined its members, officers, or directors, a statement will still need to be filed. Updates can be made the following year that will correct any information filed during your initial report.
If your state requires a Registered Agent, you'll need to include this information on the form. In the case that you've changed Registered Agents, you'll need to file a new Statement of Information with the Registered Agent's updated information.
It's a good idea to start off your year by complying with the law so you can be on your way and do other important things, like running your business.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.