The fundamental legal instrument that creates the corporation as a legal entity is the Articles of Incorporation. The name and purpose of the corporation, the number and kind of authorized shares, and the name and address of the registered agent are all included in this state-filed document. The Articles of Incorporation are a public record that anybody may access and read.
On the other hand, the Statement of Information is a form that needs to be submitted to the state every year or every two years. The executives, directors, and registered agent of the corporation are listed in this document. The Statement of Information also includes the name and address of the individual filing the document, the corporation’s business address, and the nature of the business the corporation does. The Statement of Information is not a public document, unlike the Articles of Incorporation, and is only accessible to the state and specific designated individuals.
Selecting the state in which you want to incorporate is the first step in filing an Articles of Incorporation. Before filing, it is vital to familiarize yourself with the filing and fee requirements of your state. The Articles of Incorporation must be submitted together with any necessary payments to the state’s Secretary of State office. The corporation is formally established once the paperwork is submitted and approved.
In California, the Statement of Information is filed using Form SI 550. Depending on the type of corporation, this form must be submitted annually or every two years. Along with the corporation’s business address and the nature of its operations, the form also contains information about the corporation’s executives, directors, and registered agent.
The legal paperwork that must be submitted to the state when incorporating a corporation is referred to as incorporation papers. The Statement of Information, the Articles of Incorporation, and any other state-specific paperwork required for filing are all included in this. Before submitting, it is crucial to properly read and comprehend these documents because any mistakes or omissions may cause delays or legal problems in the future.
The Statement of Information and the Articles of Incorporation are both crucial documents in the process of establishing a corporation, but they have different functions and are not the same thing. To make sure that the organization is constituted legally and appropriately before filing, it is essential to thoroughly read and comprehend each document.
By submitting your Statement of Information on time, you can avoid paying the $800 franchise tax in California. Late submissions might incur penalties and raise the franchise tax. Additionally, you might be able to completely escape the franchise tax if your firm hasn’t done any business or made any money in California. It is advised to seek specialized advice on how to avoid the franchise tax from a tax expert or lawyer.