Missing statement, suspension common for nonprofits

July 29, 2013 

I am a local corporate attorney and I would like to put some perspective on Saturday's front-page article "State suspension paralyzes Latino group" about Latino Community Roundtable being paralyzed by suspension.

It is common that corporations get suspended because they fail to file their statement of information, especially nonprofit corporations. The California secretary of state used to mail the statement of information form to general corporations each year and to nonprofit corporations every other year. A few years ago the secretary of state stopped mailing the actual form to corporations and instead mailed a 4x6 inch card telling corporations to go online and file their statement of information or print it out and mail it in.

These small cards get missed or lost frequently, especially by nonprofit corporations who may be less familiar with corporate requirements and only have to file a statement of information every other year. The secretary of state's card also gets confused or lost amongst all of the bogus filing solicitations that corporations receive in the mail.

If a corporation fails to file its statement of information, the secretary of state will suspend the corporation, which means the corporation does not have the legal authority to conduct business until it gets revived. The application for revivor is a straightforward process to file and pay the penalty.

There is nothing corrupt or sinister about failing to file a statement of information.



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