Have You Received Mail From Business Filings Division?
I’m starting to see a rash of mail come through my office from a company called Business Filings Division. My California clients look to be targeted right now, although I’m sure other states will be soon. If you’ve received one, don’t be fooled. It’s not real and you don’t have to do anything.
The solicitation comes in an official-looking envelope, with a confusing message that says both “BUSINESS MAIL - IMPORTANT NOTICE ENCLOSED” and then underneath that “THIS IS NOT A GOVERNMENT DOCUMENT”. Well, gosh, it sure looks exactly like the type of letter the CA Secretary of State’s office sends out, but let’s leave that alone for a minute.
Opening up the envelope, you’ll see a form with an official-looking government seal in the top, left-hand corner, then in the middle there’s 3 lines of centered text saying “Business Filings Division / Statement of Information / Limited Liability Company.” It’s got some official looking language on the right, including “Control Number,” the LLC’s CA registration number, and then the good stuff: Remit Payment $239.00, and Due Date: August 15, 2009 (remit immediately). Again, the key words are “official looking.”
Below that is some very carefully worded small print talking about California law, the fact that entities are required to file a Statement of Information after formation, and “at the time their Statement is due.” It also notes, in big, bold letters (of course) that there’s a penalty of $250 for companies that don’t file by their due date.
The rest of the form asks for information about the company, another warning note about the dire consequences of failing to file a Statement of Information, and then a note saying that the product or service has not been approved or endorsed by a government agency, nor is the offer being made by a government agency.
The back side of the document is covered in terms and conditions, along with some more dire warnings and reprints of information from the front. There’s also a statement that Business Filings Division will hand deliver the statement to the CA Secretary of State in a timely manner, along with state fees. And you’ll get a certified, stamped copy mailed to you for your records.
I’m used to seeing these, and it’s always fun to find the nuggets of truth hidden in the rhetoric. Here’s what they didn’t say.
- This isn’t a formal Statement of Information. That’s delivered to you directly by the Secretary of State, either through your Resident Agent, or to your address on file.
- The document as presented can’t even be filed with the Secretary of State. They will take your information and reprint it on the official form.
- LLCs only file a Statement of Information once every two years. It’s typically due by the end of the month when your LLC was formed — so if it was formed in July 2007, the Statement of Information would be due July 31, 2009, 2011, 2013, etc.
- There may be a penalty on the books, but it’s rarely, if ever enforced.
- You can mail in your statement and you’ll still get a stamped copy if you include a self-addressed stamped envelope.
- The actual filing fee for a Statement of Information for an LLC is $20.
By the way, if you’ve got a corporation things are a bit different. You file every year, the fee is $25, and you can file online.
So … that $239 they are charging consists of a $20 filing fee due to the State of California, and $219 going to …. well I’ve got a pretty good idea of where that’s going.
These things bug the heck out of me! There are two or three companies I’ve seen who engage in this kind of scam. It’s obviously profitable — as soon as a state A-G’s office shuts one down, another springs up (sort of like dandelions on my front lawn). I figure the least I can do is tell folks what to look for, and how to separate truth from … that other stuff. 
On the other hand … it may be a great time to take a look at your LLC or corporation and make sure you have filed your Statement of Information and your entity is in good standing.
Delicious
Digg
Reddit
TechnoratiTrackback URL for this post:
- Megan Hughes's blog
- Sign in to post comments
- Email this page
Megan, I am glad you brought this up, I see many of these and do recognize them since I file real statements for clients all the time so I know the scams when I see them, but I would guess no one else would know its a scam since the only hint is the part that says “this is not an official government document”—and yes CA is huge with this scam but other states it happens too. AND it is not just for corporate filings, anything that requires a government filing of any sort is ripe for this type of scam. Another popular example is trademark filings, I have seen just as many scam ads for legitimate appearing “required” filings for trademarks, when actually it is just a scam to advertise your trademark in some publication that is meaningless or non existent…beware of you own any trademarks for this as well.
I get ones from a company telling me to hurry up and renew a domain name, as though they are the registrar I already have.
It’s slimey, and designed to hit front office workers so that they will assume it is a legitimate bill that should be paid for existing service.
Okay, I got screwed. I paid the fee. When I looked at my banking account information and it said “Cashed Check” that’s when I knew I got screwed. Government agencies never “Cash a Check”. I already filed a complaint with BBB (by the way the company has an F rating) and also filed a complaint with the CA Attorney General office. I called my bank and hoping that I will get reimbursed, I notified the bank of the company so hopefully they will issue a warning.
I’m sorry to hear that! Keep your eye on the mail to see whether or not you actually receive a filed copy of your Statement of Information.
It’s hard to tell with CA - the public records system website doesn’t give you very much information. But if you don’t see anything by the end of your incorporation anniversary month (i.e., a June 2nd incorporation date would mean a June 30th Statement of Information due date), call the Secretary of State to see if the Statement of Information was actually filed.
There have been many of these over the years. Corporation Commission was a big one a few years back. They started in CA and went from state to state, one step ahead of the A-G offices each time.
One of the benefits to having a resident agent (at least if you use my company) is that we encourage our clients to fax over anything hinky so we can look at it. I remember a scam a few years back that not only pulled a false minutes ruse, but also tricked people into changing their resident agent at the same time! In that case the notice would say something along the lines that [state] law [section number] required companies to hold an annual meeting and prepare Minutes, and intimated that the Minutes must be filed to comply. They would, of course, prepare your Minutes for a fee. In truth, most state laws do have an annual meeting requirement, but it’s only for corporations. Minutes are simply a way of documenting the meeting - but there’s no law that says the meeting must be documented — just that it be held. There’s also no law requiring companies to file Minutes in any state.
The best way to combat this stuff is to scream it from the rooftops — just like you did by telling your story. Thank you for taking the time to tell us about it!
—
Megan Hughes
www.businessfirstformations.com
Last week, my business had its best month ever.
Thank you Megan for posting this about Business Filing Division. I just received this email:
Hi Diane,
I got the mail with the official looking form you describe in your blog. Luckily I was going to pay online and could not find a website for Business Filing Division; instead I found your Blog. Thank you very much.
Regards, RL
This brightened my day!
Sigh. I also paid the fee and just noticed the fine print at the bottom after getting a 2nd letter from a different company to file the same Statement of Information for $175. I was worried that some of these would be scams and should have read closer. Bummed I wasted $239, but glad I get suckered into another $175. Thank you for the information, Megan.
Ricky Chu MediumMonster.com RikDaddy.com
I also received this scam mail. How do I report it? Is there a website to fwd this document to?
thanks,
pob
Hi paulo,
Here’s the information on record at the California Secretary of State:
f you have received a solicitation letter that seems misleading or confusing, please contact the California Attorney General’s office at the California Department of Justice, Public Inquiry Unit, P.O. Box 944255, Sacramento, California 94244-2550 or through the California Attorney General’s website at www.ag.ca.gov/consumers/general.php. The telephone number for the Public Inquiry Unit is (800) 952-5225 (toll free in California) or (916) 322-3360.
http://www.sos.ca.gov/business/be/alert-misleading-solicitations.htm
—
Megan Hughes
www.businessfirstformations.com
In this economy, surviving is winning!
Thank you! You just saved me over $200. I was kind of hesitant about sending my money to this company. I had just opened my LLC and did a statement of information last year in which I had to pay all this money. I recall when I formed my corporation this paperwork would only have to be submitted every two years so when I got this letter in the mail I was really starting to wonder what is going on. I tried to call the number on the bottom of the letter but of course no one answered. I put it off for a week than decided to take a look at it today. I started searching on the secretary of states website to see if there was any information and then I came across this post. This just goes to show you should always go with your gut feeling and my gut told me I didn’t awe anything especially $239 dollars. I really appreciate the fact there are still honest people in this world. You didn’t have to relay this information but you did and I appreciate it. If you have any other good tips for a first time business owner I would greatly appreciate it. Also do I have the option to file online through the secretary of states website.
You can file online if you have a corporation. The link is here: https://businessfilings.sos.ca.gov/. But if you’ve got an LLC, you need to print off the form and file it manually, along with your $20 payment.
—
Megan Hughes
www.businessfirstformations.com
Last week, my business had its best month ever.
Thank you for taking the time to bring this to peoples attention.I have been in this country for 14 years now and during the first two years I know I fell victim to a few scams and was unsure about others. I remember receiving an official looking police document asking for funds for the police, amazingly it had a phone number on it which I called. The telephone conversation fell apart after about 1 minute and the guy on the other end hung-up. The internet was quite young then and so there was no other way of really checking up on these things other than talking to people.
As a general rule, if there is no date on a mailed document and no phone number to call someone then this is enough to arouse suspicions. In the case of the “Business filing Division” document there is simply to much bold text to make it look genuine.
Thanks again, this is a very valuable service.
Bob
I want to thank you as well. Just saved me $470.00 and a lot of embarassment. Also, got me kudos with the boss.
Boss kudos are always a great thing! I’m glad we were able to help.
—
Megan Hughes
www.businessfirstformations.com
Last week, my business had its best month ever.
Thank you!!!! Just received one of these in the mail. I missed the copy on the senders envelope that stated “THIS IS NOT A GOVERNMENT DOCUMENT”. Since I just started my LLC back in April of this year I know that I’m current with the SOS and was puzzled enough about the document to look at it closely. I first started with an internet search with the address to see if it was in fact a government office. The thing is I found some government agencies within the same building but I didn’t find the “Annual Filing Division” office. I almost stopped there but decided to do one more search before paying and found your blog as one of the first to pop up. Thank GOD! You have really provided a great service to the business community by posting this information. Thanks so much!
Also, I encourage anyone who has received this letter to report it to the authorities ASAP. I personally would like to see these CROOKS caught and behind bars!!!