Annual Legal Checklist for California LLCs and Corporations

Running a California business involves more than daily operations and serving clients. Every year, LLCs and corporations must complete specific legal and compliance tasks to remain in good standing and maintain protection from personal liability. Missing even a single requirement can lead to penalties, suspension, and unnecessary risk.  

This annual checklist outlines the essential steps every California LLC or corporation should review. While your industry or activities may require additional compliance obligations, these core items are critical for compliance and long term governance.  

1. File Your Statement of Information  

This is one of the most commonly overlooked filings.  

Requirements: 

• LLCs: Every two years (Form LLC12)
• Corporations: Every year (Form SI550)  

Before filing, confirm accuracy of:  

Failure to file can result in penalties and suspension by the California Secretary of State.  
Important: Out-of-state businesses registered in California must also file and maintain an updated Statement of Information.  

2. Pay the California Franchise Tax  

Every California LLC and corporation must pay:  

Even out–of–state companies registered to do business in California with no revenue must pay the minimum franchise tax – we often call this the “pleasure of doing business in California” tax.  Missing payments can result in Franchise Tax Board (FTB) suspension, which may prevent your company from lawfully operating, filing lawsuits, or enforcing contracts.  

3. Hold and Document Required Meetings  

For corporations, annual meetings are mandatory.  

In written minutes, you should:  

LLCs are not legally required to hold annual meetings under California law, but documenting major decisions strengthens your liability protection.  

4. Review Your Operating Agreement or Bylaws  

As your company grows and evolves, your governing documents should reflect current operations.  

Ask yourself:  

Outdated documents are a common source of future disputes.  

5. Renew Business Licenses and Permits  

Confirm that all required licenses and permits are active, including:  

Operating without proper licensing may lead to fines or jeopardized commercial contracts.  

6. Review Employment Law Compliance (If You Have Employees)  

California employment laws change frequently – often twice per year.  

Conduct an annual review of:  

Employment issues remain one of the most common sources of litigation for California businesses.  

7. Confirm Registered Agent Information  

Your registered agent must:  

Outdated or incorrect agent information can cause you to miss lawsuits or government notices.  

8. Review Contracts and Insurance Coverage  

Each year, review:  

Ensure that:  

9. Maintain Proper Corporate Records  

Keep organized copies of:

Strong recordkeeping supports liability protection and simplifies audits, financing, and transfers.  

10. Check Your Good Standing Status  

Verify your standing with both:  

If your entity is suspended, take corrective action immediately.  

11. Consider Strategic Legal, Tax, and Advanced Planning  

Annual reviews create opportunities to evaluate:  

Proactive planning can prevent disputes and reduce tax inefficiencies over time.  

Why This Annual Checklist Matters  

California’s regulatory environment is strict. A consistent annual review helps your business:  

Copenbarger & Copenbarger’s Business, Tax, and Advanced Planning department assists California LLCs and corporations at every stage – from reinstating suspended entities to implementing ongoing compliance systems. We offer corrective services and ongoing maintenance programs to help businesses remain in good standing and properly governed.  

Contact us today to learn how we can support your business compliance and maintenance needs.