In early 2015, California Assemblymember Cheryl R. Brown
introduced Assembly Bill 871 (AB-871), which seeks to change the filing period
for when business entities in California file their annual report, known in
California as a Statement of Information.
Currently, Statement of Information due dates are tied to
the entity’s date of formation. Under existing California law, all Corporations
and Limited Liability Companies must file an initial Statement of Information
within 90 days after the filing of its original articles and periodic updates
are due annually for corporations and biennially for limited liability
companies, before the end of their anniversary month.
AB-871 proposes a switch to a fixed date model that would align
California Statement of Information due dates with the federal tax filing
deadlines based on entity type. AB-871 would require that:
·
All For Profit Corporations file their Statement
of Information annually, by March 15
·
All Limited Liability Companies file their
Statement of Information biennially, by April 15
·
All Nonprofit Corporations file their Statement
of Information annually, by May 15
The bill’s author and other supporters suggest that
standardizing the Statement of Information filing dates would eliminate
confusion businesses face as to when Statements are due, thereby increasing
compliance.
In April 2015, the Assembly Committee on Banking and Finance
passed AB-871 by a vote of 11-0 and referred the bill to the Assembly Committee
on Appropriations. There are no new votes scheduled for AB-871, but the
California Society of Enrolled Agents (CSEA) who is sponsoring the bill
indicates they expect the bill to begin moving again soon.
Do you support a switch to a fixed date filing schedule for
Statements of Information in California? Leave a comment with your thoughts!
