Introduction:
When starting a business, forming a Limited Liability Company (LLC) is one of the most popular options for business owners. Doing so offers many benefits such as personal asset protection, tax benefits, and overall increased credibility. However, being an LLC owner also comes with a set of responsibilities that need to be met to ensure that the business remains compliant with the law. One important requirement is filing a Statement of Information, often known as the LLC 12, with the Secretary of State. In this blog post, we will discuss the importance of filing LLC 12 and why it needs to be done correctly.
What is a Statement of Information (LLC 12)?
A Statement of Information is a document required by the state government and is filed with the Secretary of State’s office by LLCs. It contains basic information about the LLC such as the name of the LLC, its address, name and addresses of the managers or members, etc. It must be filed every year to maintain the LLC’s good standing status and avoid penalties and late fees.
Why is it important to file a Statement of Information correctly?
Filing an LLC 12 correctly holds great importance in ensuring that your LLC remains legally compliant. Failure to file properly can lead to penalties, fines, and even suspension of your business. Moreover, a properly filed statement of information helps maintain the credibility of your company, both in the eyes of your customers and the government.
What happens if a Statement of Information (LLC 12) is not filed or is filed incorrectly?
Failing to file an LLC 12 on time or filing an incomplete or inaccurate statement of information can lead to the LLC being suspended or dissolved. In such cases, the owners of the LLC will lose the legal protections that LLCs offer, leaving their personal assets at risk. Additionally, late fees and penalties can be hefty, starting at $250 and increasing up to thousands of dollars.
How can you make sure the Statement of Information (LLC 12) is filed correctly?
To avoid the aforementioned consequences, make sure to file LLC 12 on time and accurately. This document requires a considerable amount of attention to detail, especially when providing the names and addresses of members and managers. Double-checking the information before submitting can prevent errors and save you hundreds or even thousands of dollars in penalties.
Conclusion:
Filing LLC 12 correctly is crucial in maintaining the good standing of your LLC, protecting your personal assets, and avoiding costly penalties. It’s essential to keep in mind that the Statement of Information needs to be filed annually, so make sure to mark your calendars and don’t miss the deadline. Paying attention to the details and making sure the information provided is complete and accurate will go a long way in ensuring a smooth and successful business journey.
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