The Importance of Calendaring

In my last article I wrote about the importance of filing CalBRE reports on time (quarterly and annual reports for threshold brokers, annual report for non-threshold brokers and annual reports for broker controlled escrows). But, there are other areas in which a company must stay current with filings. Make sure you have these calendared!

CalBRE License Renewals: In recent days I have been contacted by several brokers who had allowed their CORPORATE licenses to lapse. They were unaware of this until all of their agents started receiving letters from the CalBRE that they no longer had an employing broker. This can be disastrous! Not only would any licensed activities be illegal, but any contract would be invalid if it was executed during the time the license was in an expired state. The ongoing repercussions can be monumental. Any fictitious business name (dba) is dropped from the license by the CalBRE, as well as the Salesperson licenses. It can take from six to eight weeks for the license to be renewed once the lapse is discovered, the fees are paid and the renewal application is submitted. Essentially, the company is out of business for the duration. PLEASE stay on top of the expiration date of your personal license, your corporate license and your agents’ licenses. All licenses must be renewed every four (4) years. Using Outlook or any other calendaring program or tickler can save you a ton of grief and potential fines.

Fictitious Business Names (DBAs): A fictitious business name filing is only good for five (5) years in any county in California. With very few exceptions (Alameda County being one), the county DOES NOT contact you to let you know that your fictitious business name is about to expire. If you renew the fictitious business name before it expires, there is no need to republish. Miss the deadline by one day, and you have to go through the whole process of republishing all over again. Five years sounds like a long time, but it goes by in a flash. Make sure you have this one calendared, too.

Statement of Information for Corporations: The Statement of Information (SOI) for Corporations must be filed with the Secretary of State every year prior to the end of the month in which the corporation was formed. The fee is $25 and the filing can be done online at www.sos.ca.gov under BUSINESS FILINGS. The Secretary of State sends a postcard reminder, but it seriously looks like a cheap advertising piece and is often overlooked by the broker. Just calendar this every year, file the form online and pay the $25. The late charge/fine is $250 and continued non-filing can result in a SUSPENDED corporation, which can result in a loss of the Corporate Real Estate license. Additionally, your corporate name could be snatched right from under you if someone else files that corporate name while yours is suspended. I have seen this happen with names that are considered desirable. There are services that are available that search for desirable names and grab them immediately once they are suspended. All for the lack of calendaring, a $25 fee and a five minute online filing!

Statement of Information for LLCs: The Statement of Information (SOI) for Limited Liability Companies must be filed every two years with the Secretary of State and at this time they cannot be filed electronically or online. They must be mailed or filed in person at the Secretary of State’s office. The forms required can be found at www.sos.ca.gov under Forms, Samples and Fees. (Note that you cannot be an LLC under the CalBRE, but must be either a sole proprietorship or corporation. I added the LLC information for our members who are either licensed under the Department of Business Oversight (DBO) which does allow LLCs or those with personal LLCs for investment purposes.)

It goes without saying that your state, federal and payroll taxes must be filed, but at this time of year I’m sure that is at the topmost of everyone’s mind. It is the other ones, as indicated above, that seem to fall through the cracks. Make sure you aren’t the one getting caught with the expired/suspended/cancelled/snatched name or license!