To: Editors, News Directors

Date: January 14, 2003

For: Immediate Release

Annual Report Forms Now Available Via Website
Web upgrade gives corporations access to required forms while saving money by reducing mailing costs

PHOENIX - Keeping corporate records up to date just got easier with the public launch of an enhanced Internet site. All corporations doing business in or from Arizona are required by state law to file Annual Reports with the Arizona Corporation Commission. Replacement reports are now available through the Corporations Division website.

Since a "soft launch" of the downloadable reports at the end of September, downloads are averaging more than 2,500 external hits per week. The Commission launched the website enhancement for the first time in September and continued to refine the usability until its official public launch today.

The web address is http://www.cc.state.az.us/corp/index.htm and from the "How Do I Look Up Information?" screen you can call up your corporation's records. If an annual report is due or overdue, the "Forms for Annual Reports" button will take you to a pre-formatted report with the major fields already filled in.

If you need to update your corporate data, download and print the report. Then simply strike through the incorrect data and neatly write the correct information on the appropriate line.

Annual Reports are an important part of providing public access to the persons or entities involved in a corporation. Annual Reports list officers, directors and require disclosure of prior bankruptcies, dissolutions or corporate status revocations by any officers or directors of a corporation. In addition, each corporation must name a Statutory Agent - a person or company with offices in Arizona who agrees to accept important documents on behalf of the corporation or limited liability companies (LLC). Statutory Agents receive important legal and tax documents and also accept service of process, tax forms and annual report forms.

"Like all state agencies in this economy, we need to look at ways to improve the services we offer while cutting administrative costs," Joanne MacDonnell, director of the Corporations Division explains. "Unfortunately, a lot of companies don't keep their information up to date or fail to notify the Commission when they move or change key personnel."

"We get distribute thousands of Annual Report forms to corporations each month," said MacDonnell. "When someone at a company requests a duplicate form because the original got lost or misplaced, we would have to mail out a duplicate Annual Report. Now people can download what they need and we'll save thousands in mailing costs."

MacDonnell also points out that the number of corporations and limited liability companies (LLCs) in Arizona continues to grow at a record pace, so the workload and needs of the Division will continue to grow, as illustrated in the following table:

Year*

Corporations

LLCs

Total

Difference Over Prior Year

Percentage Change

2002

215,653

101,078

316,731

36,345

+12.96%

2001

200,026

80,360

280,386

12,910

+4.83%**

2000

203,850

63,626

267,476

32,938

+14.04%

1999

186,680

47,858

234,538

28,904

+14.06%

1998

169,935

35,699

205,634

27,576

+15.49%

*Each year's data based on totals as of November 30. There were 178,058 corporations in 1997.
**Part of the reduction in 2001 can be attributed to the Commission's periodic purge of corporations and LLCs that have lost their reinstatement rights and are dissolved.

"In spite of the economic news we are bombarded with each day, the statistics show that more and more people are launching businesses in our state. People are starting more businesses than they are closing, and corporate filings continue to set record levels with each passing year," MacDonnell adds.

In November, The Progress & Freedom Foundation, based in Washington, D.C., named Arizona as the first place winner of the fifth annual Digital State Survey. The award recognizes the state's advances in facilitating access to government through electronic technologies. The Arizona Corporation Commission was one of the first states to make corporate data available over the Internet for free. This latest enhancement to the Commission website is another way the Commission aims to facilitate access to valuable information at minimal cost to taxpayers.

Protect your Corporate Status

If you own, direct or manage a corporation, it is your responsibility to maintain proper records with the state. Failing to file an Annual Report can result in a delinquency notice and, ultimately, revocation of your company's status as a lawfully incorporated business. You can avoid common mistakes by observing these simple rules:

If you move, tell the ACC. Notify the Commission in writing by mail or by fax to 602-542-0082 of any change in your company's corporate address. The Commission cannot change corporate records based on a U.S. Postal Service notice - the notice must come from an officer of the corporation.

If your Statutory Agent moves, tell the ACC. Again, Arizona statutes require that you keep the Agent address current.

Submit your Annual Report on time. Every corporation is assigned an Annual Report due date. You should receive your pre-printed Annual Report two months prior to the due date. If you want to check the due date for your Annual Report or if you need to download a new form, go to http://www.cc.state.az.us/corp/index.htm and look up your company's information and note it on your calendar so you can plan ahead.

Use the Annual Report form issued by the Commission or download an official copy. It's against the law to create your own form, change the corporate name, due date, filing number or fee printed on the form. Altered reports will be rejected.

Follow the checklist printed on page four of the Annual Report form. Follow the filing directions precisely and make sure that you carefully review the Certificate of Disclosure, check the appropriate boxes, then sign and date the form.

Send in the proper fees. Each Annual Report must be accompanied by the filing fee of $45.00 for Business and For-Profit corporations. The fee is $10.00 for a non-profit. If your report is overdue, penalties may apply and this information will be indicated through our website. Finally, note that the Arizona Corporation Commission cannot accept checks from foreign banks.

Check the ACC website regularly. Visit www.cc.state.az.us and click on Corporations Division to view your corporate records or for more information about corporate filing requirements.