LLC Annual Report (What is It & How to File It)

Published by Atty. Danya Shakfeh | Author

Last updated: November 17, 2024

Methodology
We meticulously research and verify the information presented in our articles. By consulting reliable sources and ensuring factual accuracy, we are committed to providing readers with well-informed, trustworthy content.

Newbie LLC owners often have several common concerns regarding LLC annual report filing, including what it entails when to file the report, and the right time to do it.

As an LLC consultant with over a decade of field experience and vast knowledge of filing business documents, I will share helpful insights on how to handle annual report paperwork without making mistakes.

Quick Summary

What Is an Annual Report for LLC?

An annual report for an LLC is a document that keeps information on your company's contact information, officers, change of registered agent, and other necessary details [1].

This document is also known as a Statement of Information or a Periodic Report.

Annual reports are a requirement of State law. Failing to file an annual report can result in penalties and fines. Additionally, an up-to-date annual report helps the State maintain accurate records for your company.

Some states don't require business owners to file annual reports every year. If you are lucky and start your business in a state like that, you will be filing the report every two years or even every ten years.

When you file an annual report every two years, it becomes a biennial report. Reports that business owners file every ten years are called decennial reports.

"Filing an LLC annual report is not just a regulatory requirement; it's a strategic opportunity for businesses to review their annual performance and plan for future success. Properly managing this document can avoid legal pitfalls and solidify the company's standing in its operational jurisdiction."

- Atty. Danya Shakfeh, Corporate Attorney & Writer of Venture Smarter

How to File an LLC Annual Report?

To file an LLC annual report will be easy or challenging depending on the state's regulations.  Different states have different regulations when it comes to filing annual reports.

From our experience running businesses in different states, you can file an annual report online on the Secretary of State website, and in other states, you must print out the annual report form, fill it out, and send it to them by mail.

A filing fee must be paid in most states before you file an annual report. Depending on the State in which your firm is registered, the filing fees range from $0 to $200.

What to Include in the Annual Report?

Here are the details that you should include in an annual report:

• The full legal name of the LLC.
• Principal business address.
• Registered agent's name and address (if applicable).
• Brief description of the business activities conducted during the year.
• Significant achievements or milestones.
• Summary of the financial performance (e.g., revenue, profit, expenses).
• Balance sheet and income statement (if required).
• Names and addresses of the LLC's members or managers.
• Ownership structure and percentage of ownership for each member.
• Statement of any changes in registered agent or office address (if any).
• Date of the report.
• Signature of an authorized filer, member, or manager.

How Early Can I File My Annual Report?

For most states, active and inactive businesses can submit their annual reports as early as January 1.

It's crucial to file on time as the SBA indicates that 80% of small businesses survive the first year, with rates falling to 50% after five years and 30% after ten years.

Timely compliance, which includes early or on-time report submission, is intertwined with business longevity, emphasizing the importance of setting reminders and adhering to filing schedules to support business success and avoid penalties.

See our article to learn how to check an LLC Status.

What Is the Filing Fee for the Report?

The annual fee for an LLC varies from state to state and can range between $0-$800.

For example, the filing fee for an Arizona or Idaho annual report is $0 and for Delaware, it's $300. In our case, we always pay $300 when filing the annual report for our Maryland LLC.

The filing fee is a recurring payment made to the state to maintain the LLC's compliance and good standing status. The frequency of this payment varies by state, typically occurring every one or two years.

This fee is mandatory for all LLCs, irrespective of the company's income level or business activity.

What Is the Due Date for Submitting the Report?

The due date for submitting the first annual report (and every other after that) varies from State to State but is generally due on the anniversary of the LLC formation.

Some states have a predetermined date when all companies must submit an annual report regardless of their registration date. For example, for our Maryland LLC, the deadline is April 15.

If you have an LLC in more than one State, they are called foreign LLCs in that state, and you should also file annual reports for them, according to the local LLC laws.

We recommend using an experienced annual report service yearly to assist you in filing all the paperwork because it may be challenging to keep track of all the due dates and documentation.

What Are the Penalties for Not Filling Out the LLC Annual Report?

Not filling out annual reports on time can result in penalties or even dissolution of your business by the State.

Late filings can affect your company's standing, impacting its ability to secure loans, close contracts, or expand operations.

This emphasizes the critical nature of maintaining good standing with state regulations for small business sustainability and growth.

Your LLC's limited liability protection ends if it is dissolved. Your company's capacity to pursue an action in state court, such as suing another party for breach of contract, could be harmed if it loses good standing.

Hiring professional services is the best way to avoid any mistakes being made.

How to File an LLC Annual Report - Choose Your State:

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

FAQs

References:

1. https://bpd.cdn.sos.ca.gov/llc/forms/llc-12-112021.pdf