Do you own a business in Illinois? If so, you are required to file an Illinois annual report with the state. This document is vital, as it provides information about your company to the government.
The consequences can be serious if you don't file an annual report, such as fines or LLC dissolution.
In this blog post, we will explain what is an LLC annual report and provide information about filing it. We hope that this article will help you comply with the law and keep your business running smoothly!
Why is Ilinois Annual Report Critical?
Illinois requires all business entities to file an annual report each year. This document provides the government with important information about your company, including its current address and officer names.
You must submit this form on time, or there may be consequences for failing to comply! If you do not pay your fees by the due date, your business can be fined or dissolved by the Illinois Secretary of State.
The annual report is used to update information about your company to stay current with what's happening at all times.
This includes changes in ownership or management personnel and any new products offered by the company since last year's filing deadline.
Information Needed to Fill Out the Form
To file your Illinois annual report, you will need some basic information about the business being reported on. This includes:
- Illinois LLC name
- Registered agent name
- Registered office address
- The location where the LLC was formed
- The date of formation and admission to Illinois
- Main place of business address (P.O. boxes not allowed)
- Names and addresses for each member and manager
Filling out the form itself takes only a few minutes, as all of this information is already listed in your Articles of Organization.
Ways of Filing the Ilinois Annual Report
There are two ways to file the annual report: online and by mail.
File the annual report online: Filing online is the simplest way. When you open the Illinois Secretary of State website, you will need to enter your LLC's file number.
If you are not sure what that number is, you can find it on the SOS businesses search page by searching your business by its name.
Once you fill out Illinois annual report form, you will be guided through the following steps. Fill in the contact and payment information, and you are done.
After the payment is made, you will be sent an email to confirm that your Illionais annual report has been filed.
By mail: When filing by mail, you should download, print, and fill out the paper annual report form from the Illinois Secretary Of State website. Together with a $75 check, send the completed annual report to this address:
Secretary of State Department of Business Services
Limited Liability Division
501 S. Second St., Rm. 351
Springfield, IL 62756
By filling this way, the only receipt you have is your canceled check. It takes 10 to 15 days for the report to be processed.
However, if you send them the two copies of the report and your address, the state will send you an approved copy of the Annual Report.
How Much Does It Cost to File Illinois Annual Report?
The filing fee is $75.
Please include a check or money order payable to the Illinois Secretary of State (no cash) if you mail your annual report. If you file online, payment can be made by credit card.
The filing fee is the same as for domestic and foreign corporations. Aside from the annual report fee and state taxes, corporations also need to pay an annual franchise tax. The minimum franchise tax corporations need to pay is $25.
This is a yearly expense, so make sure you include it in your budget. Learn more about how much an LLC costs in Illinois.
When Do I Need to File an Illinois LLC Annual Report?
The due date for Illinois LLC annual report is on the last day of the month before the anniversary of your LLC's formation or admission to Illinois.
You can find this date in your Articles of organization, and if you have an operating agreement, it will also list the anniversary date.
For example, if you formed your LLC on February 9th, the due date is January 31st.
You can file the annual report early. It is possible to file it 45 days before the deadline.
What if I Forget to File the Annual Report in Time?
If you don't file the annual report on time, there may be consequences for failure to comply! If you do not pay your fees by the due date, your business can be fined or dissolved by the Illinois Secretary of State.
There is no penalty for missing your annual report deadline right away. If you don't file within two months, the state will charge you a $100 penalty each year in addition to your $75 Annual Report filing fee.
If you don't file within six months of the due date, the state will dissolve your LLC administratively.
Filing late may also lead to missed opportunities for your business as it will not be included in searches done by customers, partners, or vendors.
An annual report service is the easiest way to help you file annual reports on time and avoid potential problems!
Hiring Illinois Annual Report Service
If your plate is full and adding another task to your to-do list makes you feel ill, it is an excellent option to hire an Illinois annual report filing service to help you.
Many other LLC owners have delegated their reporting responsibilities to annual report services. These organizations will handle your Illinois Annual Reports every year, taking care of the entire process for you.
However, their services aren't limited to founding a limited liability company or managing annual reports.
They may also assist you with forming your company, drafting an operating agreement, handling registered agent duties, and much more for a reasonable fee.
Read more: Illinois Registered Agents
Will the State Send Me a Reminder?
Yes! Your registered agent will get a reminder and a physical copy of the Annual Report from the Illinois Secretary of State 45 days before it is due. If you plan to file online, you can skip the paper form.
It would help if you also considered using your phone, calendar, or planner to set up your own reminders. You don't want to forget and end yourself paying the penalty!
Do I Need to Put Financial Information in the Report?
When submitting the Annual Report, no financial data is supplied to the Secretary of State.
How Long Does Illinois Annual Report Processing Take?
Online filings are instantly processed. Filings by mail take much longer - 10 to 15 business days.
What if I Require Extra Time to Finish My Annual Report?
Although Illinois does not legally offer extensions for Annual Report files, the state's deadlines do include a grace period. While your reports are due on the last day of the month before your LLC's anniversary month, Illinois will grant you an extra 60 days before penalizing you for the late fee.
Who Can File an Illinois Annual Report?
After founding a business in Illinois, anyone authorized to act on behalf of the company can file an Illinois Annual Report. This could be an officer/director, a member/manager, or a person hired by your company (a registered agent) to file the annual report on your behalf.
Does Illinois Require LLCs to File Initial Reports?
LLCs are required to file initial reports in some states. These reports are similar to annual reports, except that an initial report either comes with your formation documents or is filed within a few months of LLC formation.
You do not need to file an initial report for establishing LLC in Illinois. Your Articles of Organization file provides the state with all the information it needs for your first year in the company.
What is Franchise Tax?
A "franchise tax," despite its name, is not a tax on McDonald's or other franchisees. Instead, it is a tax imposed by states on corporations and other commercial entities, such as limited liability companies ("LLCs"), for the right of establishing or conducting business in their state.
These taxes are different than, and paid in addition to, state income taxes imposed on corporations and other enterprises by most states.
Filing an annual report might seem complicated. However, this is a crucial document that every LLC owner should be able to file alone if they so choose.
If you are still not sure how to do it, you can always hire IncFile to help you with the process of filing your documents each year and give you any other legal or tax advice.
This way, all of your paperwork will be done in advance for the next time around!
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