California’s Secretary of State recently sent out a consumer alert warning California businesses about a scam operation. (The full alert can be found here.)
If you receive a letter requesting that you submit $49.50 along with a form, etc. to “California State Corporations”, to receive a Certificate of Status for your business entity, do not respond. This is not an official government document. It is from a private enterprise attempting to extract unnecessary fees from unsuspecting business owners. Only the Secretary of State issues Certificates of Status.
Should you receive such a request, here are some suggestions:
- Verify that the letter/contact is authentic (or not).
- If not authentic, submit a written complaint to the California Department of Justice (here).
- Check with a lawyer who is familiar with the formation and operation of California business entities to make sure your business is in compliance with State and Federal regulations.