Registered Limited Liability Companies (LLCs) are required to renew their registration, which is an important step in remaining compliant with applicable laws and regulations.
Nearly every state calls for some type of renewal filing for LLCs and renewal requirements vary significantly from state to state.
Colorado, for example, mandates that an LLC renews annually at the end of the month in which it was formed. Indiana also requires renewal at the end of an anniversary month, but only every other year. LLCs in Maine must file annually by June 1, while the due date in Maryland is April 15 and in North Dakota November 15. Some states require significant paperwork when renewing an LLC, while others ask for just basic information.
The point is, it’s up to you to know how and when you must renew your LLC according to the laws of your state.
How to Renew An LLC
Renewing your LLC basically involves completing and filing an annual report and paying a fee to your state. The annual report has a variety of names and is also known by names such as biennial report, periodic report, statement of information, or annual certificate.
Annual renewals typically contains information such as:
- Your company’s name and address
- The purpose of the business
- The name and address of your registered agent
- The names and addresses of LLC members and managers
You should be able to find an annual report form on the website of the Secretary of State or similar office in your state. Some states send businesses a form containing the most current information they have about the company, while others just provide a blank form that you must fill out.
If you get a preprinted form, be sure to check it over carefully to make sure nothing has changed and that all the information is correct. If you must fill in the form yourself, take care to do so completely, and always include your payment information.
The easiest way to renew your LLC is to do so electronically, but some states enable those who prefer to fill out a paper form to do so. Filing fees for paper reports are likely to be more than those for reports filed online.
Failing to Renew Has Significant Consequences
States use the information provided with LLC renewals to keep track of businesses, validate the business is still operational, and make sure they have the correct information necessary to contact them.
If you fail to renew your LLC, you subject the business to:
- Fines
- Penalties
- Revoked status of good standing
- Dissolution (business closure)
- Loss of financing options
- Lose ability to legally conduct business
- Loss of your liability protection
- Another company may be able to claim your business name
If you’ve fallen into this situation, you can apply for a Reinstatement. A Reinstatement is a legal filing which is submitted and filed with the Secretary of State’s office to officially bring your Corporation or Limited Liability Company (LLC) back into good standing and in active compliant status with state requirements and deadlines.
How to Easily Track Renewal
Some states send out reminders when your renewal is coming due, but ultimately, it’s up to the owner of the LLC to make sure it’s done correctly and on time. Remember that you must renew your LLC in every state where you conduct business, and that each of those states may have different renewal requirements. Also, states frequently change their rules, so be sure to check the requirements each time before your renewal is due.
If you’re concerned about forgetting to renew your LLC or not sure how to go about doing so, you could consult with a company that specializes in business compliance, like CorpNet. Our secure, cloud-based portal saves you from the hassle of visiting multiple websites to find the information you need and the proper applications to complete.
CorpNet makes everything available in one place:
- Get alerts for critical filings and due dates
- Keep track of tax due dates
- View your official business documents online anytime
- Monitor business compliance requirements for multiple businesses and multiple states
- Track the Status of Your Filings
And best of all, it’s entirely free!
Free Compliance Monitoring
CorpNet’s Compliance Portal is an easy way to track renewals, stay organized, and make sure you know about approaching business compliance obligations.
