Monica Lin, Esq. MBA
New Disclosure Requirement for LLCs and Corporations, effective January 1, 2022
(Written by Monica Lin, Esq., originally published by California Lawyers Association’s Partnerships and Limited Liability Companies Committee, Business Law Section, on December 13, 2021)
Effective January 1, 2022, limited liability companies (LLCs) and corporations will be required to make the following disclosure in their Statements of Information: whether any of their managers or members (in the case of an LLC), or any officer or any director (in the case of a corporation) has an outstanding final judgment issued by the Division of Labor Standards Enforcement or a court of law, for which no appeal is pending, for the violation of any wage order or provision of the Labor Code.
This new disclosure is required by the new law AB 3075, which expands successor liability for labor code judgments and requires the Statement of Information of LLCs and corporations to contain the above information.
The California Secretary of State has recently updated the Statement of Information forms for LLCs (Form LLC-12) and corporations (Form SI-550) on its website to reflect this change in law. LLCs and corporations that file their Statements of Information after December 31, 2021 must use the new forms.
The Partnerships and LLCs Committee (PLLC) has been closely following the development of AB 3075 since the bill was first introduced. PLLC welcomes public comments on the implementation of this new disclosure requirement and will continue to monitor important legislation and issues affecting partnerships and LLCs.
This eBulletin was prepared by Monica Lin at CEO Law (lin@CEOFirm.com),
Vice Chair, Partnerships and LLCs Committee, California Lawyers Association.
Monica Lin, Esq. | CEO Law, Inc.
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