Most states have specific reporting requirements for business entities, in the form of annual reports. Businesses of any type, including corporations, LLCs, and non-profit organizations must submit financial reports, but depending on the state, the frequency with which they need to file may vary.
In this guide we’ll look at the reasons why annual reports are important, what information is needed, and what happens if you don’t file an annual report on time.
Why is the annual report required?
The annual report is necessary since it provides the Secretary of State and other government offices with up-to-date information about the business. The report is required whether you need to make changes to the previous report or not. If the business is registered in foreign states, it will also be required to file annual reports in these states.
What information is required in an annual report?
The information included in the annual report will differ depending on the state of incorporation, and entity type. However, most annual reports must include the following details:
- The business’ name
- Any DBA (Doing Business As) names
- The business’ purpose
- The main business address
- Registered agent details (including the name and address)
- Names and addresses of directors and officers (if a corporation) or members and managers (if an LLC).
What happens if you don’t file an annual report?
This report must be filed annually for your business entity to maintain an active status with the Secretary of State. Active status is necessary for the business to be lawfully recognized to transact business in the state of registration.
There are consequences for businesses that fail to comply with their state’s annual report requirements. Late filings incur a fee and continuous late filings or failure to submit reports can result in a company losing its good standing, affecting its reputation within the industry. In worst-case scenarios, non-compliant companies can be completely dissolved and lose their ability to do business.
It’s also important to file a complete return. Omissions on the report and a lack of signatures or dates can also result in the rejection of your annual report, leading to delays and further issues.
Are there annual report fees?
Most states charge a fee to file an annual report, and filing fees vary greatly between states. Some states only collect a nominal fee, such as $10, while others may charge several hundred dollars or more.
It’s important to pay the correct amount and use the correct payment method when you file your report. Failure to do so can cause additional paperwork and fees further down the line. Timely filing will also eliminate additional fees.
Get help with your annual report filing
Corporate Creations offers annual report filing services and can complete your report and file it on your behalf. Our team of compliance experts can assist you whether you’re filing one or multiple annual reports across several states. Discover prices or place an order here.