A client recently received a letter in the mail.
It is very official looking and in big bold type just above the envelope’s window with their corporation’s address on it, the words: “IMPORTANT – Annual Minutes Requirement Statement – Business Mail – Time Sensitive.” The letter instructed them to complete a corporate compliance form and pay a fee by a specific deadline.
Some of these notices are sent to directors or officers, while others are for the general corporation. Generally, these notices cite a California statute that requires corporations to prepare corporate minutes. The form usually requests that the corporation provide the name of the officers and directors of the corporation and upon paying a fee, approximately $100.00 or more, they will assist the corporation in meeting its statutory obligations. These notices appear to be issued by the California Secretary of State or some other governmental entity. However, these notices should be disregarded because they are neither issued by the California Secretary of State’s office nor any governmental agency. Instead, they are issued by private for profit, non-governmental businesses that attempt to make you believe that you need to utilize their services to be in compliance.
In very fine print, the document usually has a disclaimer, such as: “CA Business Professions Code Sec 17533.6 This service has not been approved or endorsed by any government agency, and this offer is not being made by an agency of the government.”
Private businesses obtain information from the California Secretary of State’s website regarding the name and address of your corporation and will mail out these compliance notices to new organizations. These so called “notices” make the reader believe that their corporation is somehow out of compliance and must respond as soon as possible to resolve the problem(s).
Corporations are required to comply with corporate formalities and file certain documents with the California Secretary of State or other governmental entities; however, you are not obligated to utilize the services of a company, such as Corporate Compliance Services, to be in compliance.
If you have received such a notice or have any questions regarding your corporate compliance issues and requirements, please contact JV LAW GROUP at (714) 752-3270.
