Business owners need to pay close attention if they’ve received a letter in the mail from a company called “Business Filings Division.” The information can be confusing.
According to the California Secretary of State, “every domestic and registered foreign limited liability company shall file or cause to be filed a ‘Statement of Information’ with the CA Secretary of State, within 90 days after filing of its original Articles of Organization of Application of Registration and biennially thereafter during the applicable filing period.”
The cost to file is $20.
Business Filings Division (BFD) offers to file a Statement of Information for $239 and cites in their letter significant negative consequences for failing to file by a specific due date (given by BFD). These include: losing benefits such as the right to conduct business, retain entity name, and answer a law suit; not to mention company suspension.
“The notice from the company indicated that I only had 4 days left to get the check in the mail,” said one California business owner. The reality is that the company had more than 2.5 months to file.
BFD clearly states on their envelope and within the body of the text that they are not affiliated with any government organization. However, they also use clauses in their letter such as “Remit Immediately,” “Avoid Penalties, Fines, and Suspension,” and “Submit by Due Date to ensure no penalties will be assessed.” The due date is usually within 10 days after receiving the letter.
Over 110 complainants have provided the BBB with information regarding BFD, 10 of which actually paid for the service. This month alone the BBB has received over 400 inquiries about BFD. The company currently holds a BBB rating of F for failing to respond to complaints.
“The problem is that business people may feel that they need to avail themselves of this service to meet an immediate deadline in order to avoid significant penalty,” said Barry Goggin, President of the Better Business Bureau serving northeast California. “This may prevent them from doing any research to find out how easily and inexpensive they can file it themselves.”
Do not divulge personal information to anyone who solicits information over the phone. Before making any purchase, always be sure to obtain a BBB report as part of your decision making process. For reports on businesses and for information about BBB services, visit our website at www.bbb.org or call (916) 443-6843.