State business records go digital

Change should help users avoid the pitfalls of manually filling out forms, official says.

California’s website for business records and requests just got a lot simpler.

As of Wednesday, businesses no longer have to submit physical LLC Statements of Information because the records may now be submitted via the California secretary of State’s website. An LLC Statement of Information includes records such as the company’s name, location and type of business, as well as the addresses of chief executives and managers.

“We’re streamlining the process so that entrepreneurs can focus less on red tape and more on growing their business,” California Secretary of State Alex Padilla said.

Padilla’s office said it processes about 375,000 of the forms a year.

Sam Mahood, Padilla’s press secretary, said that business owners often accidentally miss a step with paper records, and the office rejects the form and makes the business resubmit. With the process going online, Mahood said the step-bystep directions should help users avoid the pitfalls of manually filling out forms.

“It’s an ongoing time-saving measure, since business owners have to file new Statements of Information every two years,” he said.

The penalty for a business failing to file the statements by the deadline is $250, so the digitization should help business owners avoid the costly penalty. Those who want to submit the forms on paper can still do so.

To form an LLC for the first time, Articles of Organization must still be filed in person or by mail, but Padilla hopes to digitize that process by December.

The change in policy comes with the office’s Wednesday launch of Bizfile California, a one-stop online portal for users to submit, search and access business filings.

The portal joins the California Business Search, which the office revamped in December, as part of Padilla’s ongoing push to modernize the office.

Since December, Padilla’s office has posted more than 10 million free, downloadable records related to corporations, companies and partnerships. These include files on Statements of Information, registrations, amendments and terminations for California businesses.

Previously, these documents cost $1 for the first page and 50 cents for every additional page, and usually took five business days to process.