An accountant in California may not be able to do Secretary of State filings for their clients because California law requires that certain filings with the Secretary of State's office be completed by a registered and bonded legal document assistant or a licensed attorney. These filings may include the formation of a corporation or LLC, the filing of a statement of information, or the amendment of articles of incorporation.
While accountants may have a good understanding of financial matters and tax law, they are not licensed to practice law or provide legal advice. Therefore, they may not have the necessary training or expertise to properly complete the required Secretary of State filings for their clients.
Additionally, the Secretary of State's office may require certain forms or documents to be completed and signed by the client themselves, rather than by a third-party accountant or other professional. This is to ensure that the client is fully aware of the legal implications of the filing and can make informed decisions regarding their business entity.
Therefore, it is important for business owners to consult with both an accountant and an attorney when forming or making changes to their business entity to ensure compliance with all legal requirements.
Important: If you are late in filing your Statement of Information (must be filed within 90 days of formation for both a Corporation and LLC, then every 2 years thereafter for an LLC and every year for a Corporation), the California Franchise Tax Board will assess a penalty of $250.00.
Why was my business entity assessed a penalty?
Penalties are assessed by the Franchise Tax Board when a business entity has not filed the required Statement of Information with the Secretary of State’s office. If the statement has not been filed timely, the entity is provided a notice of delinquency, and after 60 days from that notice, if no statement has been filed, the Secretary of State’s office notifies the Franchise Tax Board, who assesses and collects the penalty. Statements of Information can be filed online at bizfileOnline.sos.ca.gov.