In April, I wrote about AB 2431 which modifies the statement of information a statement requirement for LLCs. In 2020, the legislature enacted AB 3075 (Gonzalez) to require that statements of information filed with the California Secretary of State disclose whether any director of the corporation or member or manager of the LLC has an outstanding final judgment issued by Department of Labor Standards Enforcement or a court of law for violation of a wage order or other violation of the Labor Code. See California Governor Signs "Wacky" Successor Liability Bill Into Law and A "New Fine Question" For This Proxy Season. As a result, the Secretary of State added a question regarding labor judgments to the statement of information forms and required all LLCs to file a complete statement of information. Thus, LLCs have not been able to file a simple "no change" statement until after they have filed a complete statement of information with the disclosure mandated by AB 3075.

AB 2431 changes the mandated labor judgment disclosure. As a result, the statement of information form will be changed again and LLCs will be required to file a complete statement of information including the new disclosure before they can file a "no change" form.

FinCEN Should Have Heeded Polonius

Yesterday, the Financial Crimes Enforcement Network (FinCEN) issued its long-awaited final rule requiring beneficial ownership information reporting by corporations and other business entities pursuant to the bipartisan Corporate Transparency Act. When I printed out the rule, it weighed in at over 300 pages (double spaced). Would that FinCEN had heeded Polonius' advice rather than his example!

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