I was trying to file the Statement of Information (SOI) for my friend’s S corporation with the California Secretary of State (SOS). Usually, when I file the CA SOI, I file it online and pay the standard $25 fee. I understand that having a pin increases the privacy of business owners and prevents strangers from filing SOI on companies. I believe making a website and having a login already prevents that. I had to request a pin number that was going to be mailed to the address on the SOS website. It came in the mail in 1 week. I personally don’t agree with this new change. Normally, I could have filed on the website without a pin; getting a pin number is apparently a new policy implemented by CA SOS. I don’t agree with this new policy as people can forget to file the SOI.
Not filing the SOI can lead to suspension in the State of California and the following can happen if an entity is suspended:
- Suspended entity rights in the State of California are limited; making it harder to do transactions
- Can’t sue or defend itself in court.
- Banks may close your accounts
- Business licenses can be canceled.
- Suspension can lead to FTB problems.
By needing the pin, it may cause people to delay filing their SOI or make them forget it. For a small, tiny $25 fee, not filing the SOI may lead to further big issues in one operating their business.
Working notes. I used AI only to clean grammar. The views are mine. Not investment, tax, or legal advice.
Gurshawn Jagpal 
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