Are you confused about your business’ annual report requirements and if you need to complete one? You’re not alone. Requirements for annual reports vary by state, so they can be a little intimidating for the average business owner.
If your business is a Limited Liability Company (LLC), Corporation, Nonprofit Corporation, Limited Partnership, or Limited Liability Partnership, you will probably need to file an annual report with the state in which the business is registered. If your company is registered as a foreign entity in one or more states other than that in which it was formed, you probably will also need to file annual reports with those states.
An annual report is known in some states as a yearly statement, periodic report, annual registration, annual renewal, or even a biennial report. Every state except Ohio requires some sort of annual report, but some states call for reports to be filed every two years instead of every year. While some states mandate that annual reports must be filed before a certain calendar date, others impose due dates based on the anniversary date of when the company was formed. You can learn your state’s filing due dates on CorpNet’s Annual Report List by State for LLCs and Corporations.
What’s Included in the Report?
Annual reports are intended to provide information that enables the state, the public, and investors to locate, access information about, and contact companies registered within the state.
The information that must be included in an annual report varies from state to state, but generally most states will require:
- Company name and address listed in the company’s formation documents
- A fictitious name, if applicable
- The purpose of the business
- Is the company U.S. military veteran-owned? (optional)
- Registered agent name and physical address
- Principal office phone number
- Principal office email address (optional)
- Annual report receipt return email address (optional)
- Principal office street address (where corporate books are located or where business is being conducted)
- Mailing address
- Names and addresses of a Corporation’s officers and directors
- Name and address of an LLC’s members or managers
- Who is executing the document
Some states may require additional information, such as identification numbers or a list of people within the company who are authorized to sign binding agreements on behalf of the business.
Let Us Help File Your Annual Report
Whether you’re filling your report on time or catching up on past-due submissions, we can handle all the paperwork for you.
How to File an Annual Report
While the rules concerning annual reports vary depending on where your business is located, here are some general steps for submitting your annual report:
- You generally won’t need to create an annual report from scratch, as your state will provide a form online for you to fill out. Some states send businesses a form preprinted with the most current information on file, while others provide blank forms for business owners to fill out. Look for the form on the website of the Secretary of State or corresponding office in your state.
- Be sure to review any preprinted information carefully to make sure it hasn’t changed since your last filing, and always double-check to make sure you complete the entire form. Some states accept paper forms, while others require that reports be filed electronically.
- Most states require a filing fee for annual reports, and many charge more for reports submitted in paper form. Some states charge only a minimal fee, such as $10 or $12, but in other states, the fee is in the hundreds of dollars. If your business operates in a state with a high filing fee, be sure to allocate money to cover the cost to avoid having your report not being filed on time.
Consequences of Not Filing a Report
Some business owners resist filing annual reports, as the chore requires thought and time and can be distracting from the day-to-day work of running a company. Missing an annual report deadline, however, can have serious consequences for your business.
Failing to submit your annual report can result in:
- Dissolution of the business (aka closure)
- Fines, late fees, and penalties
- Revoke a company’s status of good standing
- Limit your business’s ability to obtain financing from lenders or investors
- Ineligible to submit bids to contracting authorities
Some states send out notices reminding owners that annual reports are coming due, but the burden of getting the forms completed and submitted on time falls on business owners. And remember that if your company stops conducting business in a particular state but is still registered there, an annual report will still be necessary.
Putting It All Together
Annual report requirements can seem tough, but understanding and following them is vital to the success of your business. Something to remember is that it’s not uncommon for states to change their rules regarding annual reports, meaning you’ll need to check the stated regulations before each report is due.
You can help ensure you’ll get your annual reports submitted on time by setting up a reminder system. Always review the form carefully before sending it to the state, checking to make sure all the information is correct, the entire form is completed, and all applicable persons have signed it.
