What is the annual report? The annual report is a document that businesses are required to file with the State in which they are incorporated. This document provides an overview of the company's financial performance for the year.
It also includes information about the company's officers and directors and other essential details about the business. This blog post will explain why you need to file an annual report, what information is included, and how to file it.
What Is an Annual Report for LLC?
Every LLC must file an annual report with the State in which it is registered. This document is also known as a Statement of Information, Annual Report, or Periodic Report.
The purpose of the annual report is to keep the State updated on your company's contact information, officers, change of registered agent, and other necessary details.
Annual reports usually contain information about the change of the registered office address, change of the principal office address, financial reports, and financial projections.
Check with your State to find out when is the deadline for filing the annual report.
Filing annual reports is a requirement of State law. Failing to file 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. A report that is filed every two years is called a biennial report. Reports that business owners file every ten years are called decennial reports.
How to File an LLC Annual Report
Different states have different regulations when it comes to filing annual reports. In some states, you can file 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 submitting the report. Depending on the State in which your firm is registered, the filing fees range from $50 to $400.
Your annual report must include the following specific information:
- Business name and address
- The names and 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 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.
It can get tricky to keep track of all the due dates and paperwork, so many business owners hire a reliable annual report service to help them file all the documents.
Reminders for Filing the LLC Annual Reports
Most states, but not all, will remind you that your annual report is due. They send you a reminder to pay and file it before the deadline.
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.
Similar Article: LLC Status Check Guide
Consequences of Not Filing on Time
Failure to comply with the annual report filing deadline 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.
When Do I File Franchise Taxes?
States charge businesses a franchise tax for the privilege of being organized or registered to do business in their State. It's the State's cost for granting your LLC the legal permission to function in that State and claim the benefits that come with being a limited liability company.
Some states require you to file the franchise tax together with the annual report. Other states have separate due dates for when the annual report is due and for when the franchise tax is due.
What Is an LLC Number?
An LLC number is the State's number to identify limited liability companies. When filling out the annual report form, the business owner must write that number on the LLC's annual report.
Your LLC name, office address, registered agent information, and the LLC umber from your Secretary of State will all be included in your Annual Report.
Does My Company Need 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.
It is essential to file annual report even if you haven't made any changes in your company. The most recent data on file with the Division of Corporations is presented on the entity's annual report.
What Happens if I Do Nothing With My LLC for Some Time?
States will dissolve an LLC that has not filed an annual report for more than six months after the due date. The firm will also lose good standing with the State.
An annual report is due usually a year after its formation, and a failure to comply will get the business entity administratively dissolved.
If you want to revive your LLC, you can contact the State for the reinstatement package.
LLC Annual Report: Final Thoughts
If you're not sure where to start, seek professional help. A good accountant or attorney 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?