LLC Annual Report (What is It & How to File It)
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. This is something that I have experienced with my team when we first opened an LLC.
After many mistakes, we consulted our current team of legal professionals and got the right legal support.
Now that we have more knowledge of business formation and know how to handle paperwork without making mistakes, we have decided to share our knowledge with you.
Quick Summary
- The LLC Annual Report is a detailed account of all business actions carried out over the previous year.
- The main purpose of annual reports is to inform shareholders of the company's activities.
- An annual report for an LLC should include a thorough summary of the company's activities as well as its financial performance.
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. This document is also known as a Statement of Information or a Periodic Report.
Check with your State to find out when is the deadline for filing the annual 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.
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.
In some 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 $50 to $400 [1].
Your amended annual report must include the following specific information:
- Business name and business addresses
- The names and business addresses of officers and directors in case of a corporate annual report
- The names and addresses of managers or members in case of an LLC annual report
- The registered office address and name of the registered agent
- Some states require you to write the type of business the firm is engaged in
LLC Annual Report Deadline
The deadline 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.
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.
Many business owners use an experienced annual report service on a yearly basis to assist them in filing all the paperwork because it may be challenging to keep track of all the due dates and documentation.
Reminders for Filing the LLC Annual Reports
Using reminders for filing LLC annual reports offers valuable advantages, helping you submit on time and avoid penalties or missed deadlines [2].
Just in case you don't get that reminder in the State where you are registered, we recommend adding a recurring reminder to your calendar.
See our article to learn how to check an LLC Status.
Consequences of Not Filing on Time
Not filling out annual reports on time will come with certain consequences. It may result in penalties. The State may punish or dissolve your business if you do not pay your fees by the due date.
Your business will not be in good standing with the State until the filling is completed. This can make it difficult for your company to get a loan, close contracts, or grow operations.
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
When Do I File Franchise Taxes?
You typically file franchise taxes annually, according to the due date specified by your state's tax authorities. The timing of filing franchise taxes varies by state.
Some states require filing the franchise tax along with the annual report, while others have separate due dates for each.
What Is An LLC Number, And Is It Needed For Annual Report Filing?
An LLC number is a unique identifier assigned by the state authority to an LLC for record-keeping and identification. Whether the LLC number is needed for annual report filing depends on the state's specific requirements.
Does My Company Need to File an Annual Report?
Your company needs to file an Annual report. To keep your company in "active status" with the Department of State, you must file an annual report before the due date.
What Happens if I Don't File My LLC Annual Report?
If you do nothing with your LLC for some time, you can expect the state to dissolve it. This happens if an LLC misses filing an annual report for more than six months after the due date.
LLC Annual Report: Final Thoughts
If you're not sure where to start, seek professional help from IncFile who can help make the process easy. They can ensure that your annual report is filed correctly with your State.
Annual reports are a vital part of running a business. It's best to take care of them as soon as possible to avoid any penalties or fines. Have you prepared your company's annual report yet?
References:
- https://www.wolterskluwer.com/en/solutions/bizfilings/who-we-serve/estimated-state-fees
- https://www.quicksprout.com/filing-llc-annual-reports/
