HOW TO SERVE LEGAL PAPERS ON FACEBOOK

Facebook

Undisputed Legal | California Process Service 

Facebook– one of the world’s most prominent social networking services- was initially created by Mark Zuckerberg, together with his fellow Harvard College classmates.   Alongside Facebook, Inc Google, Apple, Microsoft, and Amazon are known as the Big Five corporations in the United States in information technology. The corporate headquarters of Facebook, Inc., is located in Menlo Park, California.

Aside from Facebook’s core social networking platform, Facebook provides many additional products and services, including Facebook Messenger, Facebook Watch, and Facebook Portal. 

[1.0] BACKGROUND 

On February 1ST, 2012, Facebook announced its intention to conduct an initial public offering  (IPO). The preliminary prospectus indicated that the firm wanted to fund USD5 billion and with its established user base of eight hundred million monthly active users and close to three billion daily likes and comments on its website, it was assumed to already be a successful venture. 

Following the first public offering, Zuckerberg would maintain a 22% ownership stake in Facebook and 57 percent of the voting shares.

[1.1] HOW DOES FACEBOOK GET ITS PROFITS

The fact that access to Facebook is free of charge as well as the fact that the majority of the company’s income is earned through advertising on the website adds to the popularity of a website. To new users, the site offers the opportunity to establish new profiles, add pictures, join existing groups, and form new groups. 

Facebook Inc. (FB) earns the majority of its revenue from advertising on its numerous social media platforms. These platforms, which include websites and mobile apps, enable users to interact with and communicate with their family and friends. Among the company’s websites and applications are the social networking site Facebook, the photo- and video-sharing application Instagram, and the messaging applications Messenger and WhatsApp. Additionally, Facebook offers an environment via its Oculus virtual reality devices that enable people to interact.

Facebook faces stiff competition from other businesses that sell advertising to marketers, as well as companies that offer platforms for communication and content sharing across users’ different social networks. Apple Inc., Alphabet Inc.’s Google and YouTube, Tencent Music Entertainment Group, Amazon.com, and Twitter Inc. are all significant rivals.

As a business, revenue from Facebook is categorized into [A.] Advertising and [B.] Other revenues, with no separate breakdown for net income.

  1. ADVERTISING

Facebook generates substantially all of its revenue from selling advertising to marketers. Advertisements are displayed on Facebook’s main social networking site, as well as Instagram, Messenger, and other third-party affiliated websites or mobile applications. Marketers pay for advertisements based on the number of impressions delivered or the number of actions, such as clicks, undertaken by users.

  1. OTHER REVENUE

Revenue from this segment is generated through the delivery of consumer hardware devices and net fees Facebook receives from developers using its payments infrastructure, as well as from various other sources.

[2.0] FACEBOOK LAWSUITS

On October 6th, 2020, the House Judiciary subcommittee on antitrust published its proposals for reforming antitrust laws to prevent the continuing development of digital monopolies after a 16-month inquiry into the corporate practices of the internet behemoths Apple, Amazon, Facebook, and Alphabet. The Democratic-majority placed in a position a  report that spanned almost five hundred pages, coming to the conclusion that the four Big Tech companies dominate the industry in ways that are detrimental to the US economy and democracy. The committee further went on to recommend that that Congress amend antitrust laws to allow for the divestiture of segments of the businesses.

The Federal Trade Commission (FTC) and attorneys-general from forty-six states, Washington, D.C., and Guam filed antitrust lawsuits against Facebook on December 9th, 2020, after a year-long investigation. The lawsuits center around the fact that Facebook’s almost-monolith acquisition strategy is intended to destroy competition, particularly accusing Facebook of illegally acquiring Instagram and WhatsApp. Additionally, the lawsuits requested that courts prohibit Facebook from purchasing anything worth more than USD million while the case is ongoing. Separately, the FTC is also suing Facebook to compel it to split up WhatsApp and Instagram.

The United States IRS initially challenged the valuation used by Facebook when it transferred IP from the US to Facebook Ireland back in 2010 (which Facebook Ireland then revalued higher before charging out), as part of its effort to establish a double Irish tax structure.  The case is ongoing, and Facebook faces a potential fine of USD3–5 billion. 

[3.0] FACEBOOK SUBSIDIARIES

  1. FACEBOOK COMMUNITY FUND

Facebook Community Fund was registered in California, on 22nd  May 2018. The business itself is a non-stock business type for California Process Service purposes. A non-stock company is a corporation that does not have shareholders (such a business is considered a stock company.  However, a non-stock company usually includes members who represent the functional equivalent of shareholders in an equity company. California Process Service may be rendered upon these members since officers of the corporation are authorized to California Process Service. 

Facebook Community Fund retains Corporation Service Company as a registered agent for California Process Service. Corporation Service Company does business in California as CSC – Lawyers Incorporating Service. It must be noted that Process Service is to be rendered only to the registered agent or the authorized officers. 

  1. FACEBOOK PAYMENTS INC.

Facebook Payments is a separate company from Facebook, Inc. Additionally, Facebook Payments cannot share the individual’s Personal Information with anyone, including with Facebook, Inc. or other affiliated companies. Facebook Payments, Inc was registered on 18th February 2011 under the jurisdiction of Florida, typifying the entity as a foreign stock corporation for purposes of California Process Service. The entity accepts claims addressed specifically to their registered agent, Corporation Service Company, although California Process Service may also be provided to the chief executive officer or any other qualified officer. 

The accompanying Statement and Designation of Foreign Corporation form must be filed with the California Secretary of State by a foreign corporation to qualify it to conduct intrastate business in the State of California. A Certificate of Qualification will be given to the company by the California Secretary of State upon the submission of the Statement and Designation by Foreign Corporation form. The Certificate of Qualification is issued only at the time of qualification and cannot be reissued if lost or misplaced.

A foreign corporation is mandated to include a certificate of good standing issued within the previous six months by the agency in the state or country where the foreign corporation was established in order to file its form with the California Secretary of State. In Section 2105(b) of the California Corporations Code, there is a reference to 2105(b).  It must be noted that the attachment of a certified copy of the corporation’s Articles of Incorporation cannot serve as a replacement for the requisite certificate.

  1. FACEBOOK SHOP, INC.

Facebook Shops is a mobile-first purchasing experience that allows companies to quickly establish an online free store on Facebook and Instagram. Shops enable businesses to choose which of their products to highlight, merchandise with product groupings and communicate their brand narrative via personalized fonts and colors. Businesses will be able to communicate with consumers in Facebook Shops through WhatsApp, Messenger, or Instagram Direct to answer inquiries, provide assistance, and other customer interactions.

Additionally, Facebook Shops seeks to collaborate with partners such as Shopify, BigCommerce, WooCommerce, Channel Advisor, CedCommerce, Cafe24, Tienda Nube, and Feedonomics to provide assistance to small companies.

The entity is typified as a foreign business corporation in California with the initial Department of State filing done on 21st April 2017, although it falls under Delaware jurisdiction.  California Process Service may be levied on a registered agent for accepting California Process Service. Facebook Shop Inc. retains Corporation Service Company as a registered agent for California Process Service.

The fee for filing the Statement and Designation by Foreign Corporation is USD 100.00.  In addition to the filing fee, there  is  a  non-refundable  USD 15.00  special  handling  fee  for  processing  documents  of California Process Service that  are  delivered  in  person  (drop off) at the Sacramento or Los Angeles regional office

ANDALE INC

  1. The Andale, Inc. is a corporation organized and existing under the General Corporation Law of the State of Delaware, where the original Certificate of Incorporation was filed with the Secretary of State of North Carolina. The nature of the business remains within guidelines necessary to engage in any activity for which corporations are to be organized under the General Corporation Law of the State of Delaware and can be identified for the purposes of California Process Service according to the Articles of Incorporation of the entity. However, the company is an international holding company, which are businesses established only to acquire and manage controlled interest in other enterprises. 

The registered office or place of business for California Process Service for  Andale Inc is in Forest City, NC. The registered agent for California Process Service is  Corporation Service Company. 

  1. GLOBAL HOLDINGS #1, LLC  

Global Holdings #1, LLC  is a subsidiary of Facebook, requiring individual Process Service to be levied upon it. Global Holdings #1, LLC  was incorporated on 30th November 2007 as a foreign limited liability company.  The entity comes under Delaware jurisdiction, although incorporated in California, and is thus eligible for California Process Service.   The entity retains a registered agent to deal with California Process Service, to whom the Secretary of State is required to forward California Process Service upon receipt. The registered agent for Process Service for Global Holdings #1, LLC  is Corporation Trust Company.

  1. INSTAGRAM, LLC  

In 2009, Kevin Systrom and Mike Krieger developed Burbn, a check-in software designed specifically for mobile phones, in San Francisco. After realizing that Burbn was too similar to Foursquare, the co-founders of Instagram, Kevin Systrom and Mike Krieger went back to their app’s original purpose of enabling users to share pictures. Instagram is a combination of ‘instant camera’ and ‘telegram’, and Burbn was renamed based on this portmanteau.

Facebook, Inc. paid a billion in assets and shares for Instagram on April 9th, 2012, with a goal of keeping the business independent. In Britain, the Office of Fair Trading (OFT) reviewed the proposed transaction on August 14, 2012, and it was allowed to continue, as the Federal Trade Commission (FTC) in the United States had already completed its investigation on August 22, 2012. On September 6, 2012, the agreement that put Instagram under Facebook’s control was finalized when Facebook officially purchased Instagram for a closing price of three hundred million dollars in cash and twenty-three million shares of Facebook stock.

The transaction was completed before Facebook’s first public offering, which was slated to occur the following day. The USD 35 million Yahoo! paid for Flickr in 2005 was used as a reference point in negotiating the transaction price. Facebook has consistently stated that it would not interfere with Instagram’s growth.

Instagram, LLC  is a subsidiary of Facebook and one of Facebook’s most profitable holdings. Instagram  LLC  was incorporated on 7th April 2012 as a foreign limited liability company.  The entity comes under Delaware jurisdiction as a general domestic limited liability company, although incorporated in California, and is thus eligible for California Process Service.   The entity retains a registered agent to deal with California Process Service, to whom the Secretary of State is required to forward California Process Service upon receipt. The registered agent for Process Service for Instagram, LLC  is Corporation Service Company.

WHATSAPP INC

  1. One of the world’s most popular messaging apps, WhatsApp Messenger, is owned by Facebook. By providing the ability to send text messages, phone conversations, and share pictures, documents, and other information, this tool gives users the capability to transmit a wide range of content. The client program for WhatsApp is optimized for mobile devices, although it may also be used on desktops if the user keeps their mobile device connected to the internet. To join up for the program, users must have a cellular phone number. To help businesses connect with consumers that use the regular WhatsApp client, WhatsApp launched a separate business app called WhatsApp Business in January 2018.

WhatsApp Inc., located in Mountain View, California, developed the client application.  The entity was purchased by Facebook in February 2014 for just shy of twenty bullion dollars   WhatsApp currently is the world’s most popular messaging program. It is the main way people communicate throughout vast areas of Latin America, Africa, parts of Europe, and the Indian subcontinent. WhatsApp was founded by Brian Acton and Jan Koum, former employees of Yahoo!.

On February 19th, 2014, Facebook, Inc. acquired WhatsApp for USD 19 billion, making it the biggest acquisition to date for the company. It was the highest venture-backed purchase of all time at the time. The investment by Sequoia Capital yielded a return of about 5000 percent. Allen & Co and Morgan Stanley, who advised Facebook on its investment in WhatsApp, recommended that Facebook pay four billion in cash, twelve billion dollars in Facebook shares, and an additional three billion dollars in restricted stock units to WhatsApp’s founders, Koum and Acton.

WhatsApp, Inc. is a subsidiary of Facebook, acquired relatively recently. WhatsApp LLC  was incorporated on 14th February 2014 in Delaware as a  general domestic limited liability company and should not be confused with WhatsApp LLC. In California, Whatsapp Inc is classified as a foreign stock corporation, incorporated in California on 9th December 2014, and is thus eligible for California Process Service.   The entity retains a registered agent to deal with California Process Service, to whom the Secretary of State is required to forward California Process Service upon receipt. The registered agent for Process Service for Instagram, LLC  is Corporation Service Company.

FACEBOOK, INC.

  1. Facebook Inc was registered on 15th December 2004 in Delaware as a Foreign Stock Company. The entity assigned Corporation Service Company for its agent for California Process Service at its location at 1601 Willow Road Menlo Park CA 94025. 

With more than two billion monthly active users, Facebook Inc. (FB) is the world’s biggest social networking site.  The goal of Facebook’s namesake website and mobile application allows users to interact with family and friends and share their thoughts, ideas, pictures, and videos. Additionally, Facebook owns and runs Instagram, as well as the messaging applications Messenger and WhatsApp. Additionally, the company’s Oculus division offers virtual reality gear, software, and a developer environment.

For more information on serving legal papers, contact Undisputed Legal our California Process Service department at (800) 774-6922. Representatives are available Monday-Friday 8 am – 8 pm EST.  If you found this article helpful, please consider donating.  Thank you for following our blog, A space dedicated to bringing you news on breaking legal developments, interesting articles for law professionals, and educational material for all. We hope that you enjoy your time on our blog and revisit us!  We also invite you to check out our Frequently Asked Questions About Process Servers.

Sources

1. Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes

2. Facebook posted $84.2 billion in advertising revenue in FY 2020, comprising 98% of the company’s total revenue. Ad revenue grew by 20.8% during the year

3. Facebook posted $1.8 billion in other revenue in FY 2020, representing the remaining 2% of total revenue for the year. Revenue for the segment rose 72.4% in FY 2020

4. Facebook Ireland is subject to a 10.5 percent GILTI tax on worldwide intangible income levied by the United States of America (i.e. Irish profits). On the assumption that Facebook Ireland pays some tax, Facebook Ireland’s effective minimal US tax rate will be approximately 11%. In comparison, if Facebook Inc.’s Irish firm migrated to the US, it would be subject to a special IP tax rate of 13.125 percent (the FDII rate). Tax relief in the US (21 percent vs. Irish at the GILTI rate) and accelerated capital expensing would reduce this effective US rate to around 12 percent. The insignificance of the US/Irish tax differential was demonstrated when Facebook relocated 1.5 billion non-EU accounts to the US to avoid GDPR exposure.

5. 1601 WILLOW RD
MENLO PARK CA 94025

6. Entity Address:

1601 WILLOW RD
MENLO PARK CA 94025

Entity Mailing Address:

1601 WILLOW RD
MENLO PARK CA 94025

7. Entity Address:

1601 WILLOW ROAD
MENLO PARK CA 94025

Entity Mailing Address:

1601 WILLOW ROAD
MENLO PARK CA 94025

8. Section 2105 of the California Corporations Code.)

9. Entity Address:

1601 WILLOW ROAD
MENLO PARK CA 94025

Entity Mailing Address:

1601 WILLOW ROAD
MENLO PARK CA 94025

10 Documents can be delivered:

  • by mail to  Secretary of  State,  Document  Filing  Support  Unit,  P.O.  Box  944260,  Sacramento,  CA    94244-2600. To facilitate the processing of documents mailed to our Sacramento office, a letter referencing the corporate name,  a  return address, and the name and telephone number of the person submitting the document also should be submitted.
  • in person  (drop off)  between the hours of  8:00  a.m. and  4:30  p.m.,  Monday through  Friday  (excluding holidays).  The office locations are as follows: Sacramento OfficeLos Angeles Regional Office1500 11th Street, 3rd Floor 300 South Spring Street, Room 12513 Sacramento, CA Los Angeles, CA

Note: The Los Angeles regional office is only able to process qualification documents delivered in person (drop off

11. https://www.sec.gov/Archives/edgar/data/12927/000119312506102223/d8k.htm

12. Address

1181 Old Caroleen Rd

Forest City, NC, 28043-3736
United States

13. This would also address objects or purposes to be transacted, promoted, or carried on

14. Phone

(408) 591-8815

15. CORPORATION SERVICE COMPANY

251 LITTLE FALLS DRIVE

WILMINGTON County: New Castle

DE Postal Code: 19808

302-636-5401

16. Contributor. ‘Facebook Buys Instagram for $1 Billion, Turns BUDDING Rival into Its Standalone Photo App.’ TechCrunch, TechCrunch, 9 Apr. 2012, techcrunch.com/2012/04/09/facebook-to-acquire-instagram-for-1-billion/?guccounter=1&guce_referrer=aHR0cHM6Ly9lbi53aWtpcGVkaWEub3JnLw&guce_referrer_sig=AQAAAE0Wzy7Vpe-ErWbugbaC5M6YrdAFVzf2_6ZVEsUa2ixKPDy24r5n5tJl-tk9XedlewVVNsM-djwhsouej2rlAtsFFu_iQ85YfZSmV_hRhp8jlFIjrsji-HYEQ1oGMBc2sqcvs3rJpUEbjpptRQWihnmt6YTpO6cgeA1U5w-zKdex. 

17. Upbin, Bruce. ‘Facebook Buys Instagram for $1 Billion. Smart Arbitrage.’ Forbes, Forbes Magazine, 26 Sept. 2012, www.forbes.com/sites/bruceupbin/2012/04/09/facebook-buys-instagram-for-1-billion-wheres-the-revenue/?sh=18408fb24b8a. 

18. Albergotti, Reed, et al. ‘Facebook to Pay $19 Billion for WhatsApp.’ The Wall Street Journal, Dow Jones & Company, 20 Feb. 2014, www.wsj.com/articles/facebook-to-buy-whatsapp-for-16-billion-1392847766. 

19. Sun, Leo. ‘Facebook Inc.’s WHATSAPP HITS 900 Million Users: What Now?’ The Motley Fool, The Motley Fool, 11 Sept. 2015, www.fool.com/investing/general/2015/09/11/facebook-incs-whatsapp-hits-900-million-users-what.aspx. 

20. 1601 WILLOW ROAD
MENLO PARK CA 94025

Entity Mailing Address:

1601 WILLOW ROAD
MENLO PARK CA 9402

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