Misleading Statement of Information Solicitations :: California Secretary of State

Sure enterprise entities have reported receiving deceptive solicitations like this pattern (PDF) urging the enterprise to submit an order kind and processing payment to a 3rd get together to file a Assertion of Data on their behalf with the California Secretary of State or endure penalties, fines, suspension or seizure. 

This solicitation, “California Companies Annual Order Kind” and related solicitations, should not being despatched on behalf of the California Secretary of State. 

The deceptive solicitation could be recognized from the next traits as proven within the pattern (PDF) : 

• Kind quantity “501-C” in daring font on the higher left and the 12 months “2022”, on the higher proper of the order kind are positioned to make the shape seem like an official tax return kind. [“Instructions on back” are not available.];
• Discloses the provide is neither permitted nor endorsed by any governmental company; signifies the provide is just not from a authorities company;
• A “Service Course of Payment” is almost 10 occasions the payment to file a Assertion of Data straight with the California Secretary of State; 
• Offers an estimated processing time of 4-6 weeks to course of and file the Assertion of Data on behalf of the company. Word: a Assertion of Data could be filed straight with the California Secretary of State on bizfile On-line and is mostly processed inside minutes;
• Discloses the order kind is just not a invoice. It’s a solicitation with no obligation to pay except the provide is accepted;
• Makes an attempt to create a way of urgency by summarizing the implications of failing to well timed file a Assertion of Data utilizing exaggerated phrases akin to “your entity may very well be taken”;
• References or quotes California legislation, a few of that are correct and a few of that are false;
• Might embody correct prepopulated details about the enterprise entity, such because the enterprise kind and entity quantity.

These solicitations should not being made or approved by the California Secretary of State’s workplace or some other governmental entity. Though a enterprise entity can use an middleman to submit filings and charges to our workplace, no enterprise is required to undergo one other firm to be able to file its paperwork with the California Secretary of State’s workplace.

Statements of Data could also be filed on-line at bizfileOnline.sos.ca.gov. The payment to file the assertion is $25 for California inventory and international companies, and $20 for California nonprofit companies and all restricted legal responsibility firms. 

Word that submitting the charges and filings required by the California Companies Code to a 3rd get together for submitting with the California Secretary of State doesn’t meet the enterprise entity’s statutory obligation to file a Assertion of Data with the California Secretary of State. Additionally, notice that Companies are required to maintain data, books and minutes of its proceedings, nonetheless this stuff should not filed with the California Secretary of State.

Motion for Deceptive Solicitations

California companies that obtain certainly one of these deceptive solicitation letters or which have paid for and obtained doc(s) ought to submit a written grievance together with the whole solicitation (together with the solicitation letter, the outer and return envelopes, and all associated paperwork if obtainable, and a replica of any paperwork obtained) to the California Lawyer Basic, Public Inquiry Unit, P.O. Field 944255, Sacramento, California 94244–2550. A Shopper Criticism Towards Enterprise/Company could be accomplished on-line and printed to mail.

** Disclaimer: Though each try has been made to make sure that the knowledge contained on the bizfile On-line portal is correct, the California Secretary of State’s workplace is just not liable for any loss, consequence, or harm ensuing straight or not directly from reliance on the accuracy, reliability, or timeliness of the knowledge that’s supplied. All such info is supplied “as is.”

Statutes of 2018, Chapter 293 (AB 492 Grayson)