For many entrepreneurs, forming a limited liability company (LLC) is the best option, as it offers limited liability protection. It also involves less paperwork when compared with a corporation, so formation is much simpler too.
However, there are certain requirements you must keep up with to be compliant. One of those is filing an annual report, which most states require.
So do you have to file an annual report for an LLC? In most cases, yes.
To help you out, this article will give you a detailed look at how to file an annual report for an LLC.
What Is an Annual Report?
An annual report is a legally required document that’s also known as a statement of information in some states. It provides the state with up-to-date information about your business, and in turn, you’ll maintain its good standing.
What does this do? Well, for one, it prevents penalties or even dissolution.
On a state level, it helps ensure that the businesses operating within its jurisdiction are properly documented and legitimate.
The following business entities must file an annual report:
- Active LLCs
- Foreign LLCs
- Corporations and other registered business entities
- Nonprofits
Now that you know what an annual report for an LLC is, let’s go over the steps for filing one.
Understand the State Requirements
Annual reports are somewhat complicated because each state has its own rules regarding this subject. So the first thing you have to do is research your own state’s rules.
Go to the official website of the Secretary of State (SOS) or the equivalent agency. On the page, look for a section named “Annual Reports” or “Business Filings.”
Next, you’ll be able to check the due dates. The annual report due dates by states vary; some require that you file on the anniversary of your LLC formation, while others have a fixed date each year. Make sure you know the exact due dates for your state, as late filings may incur penalties.
Do note that certain states may exempt very small LLCs or those operating only in specific industries to be exempt from filing an annual report. Verify if this applies to you before you prepare the document.
Gather the Required Information
You’ll have to provide basic LLC details, such as the official name exactly as registered (including punctuation and capitalization). You should also have the physical address of the LLC’s principal office, which shouldn’t be a PO box unless it’s allowed by your state.
Next, you’ll need your registered agent’s information; this is the person or entity authorized to receive legal documents on behalf of your LLC. Include both their full name and address.
The annual report will also need your company’s management details. You’ll have to list the names and addresses of LLC members (for member-managed LLCs) or managers (for manager-managed LLCs). If the information hasn’t changed, then some states allow you to skip this step.
Lastly, certain states may ask for details such as your employer identification number (EIN), number of employees, or estimated gross revenue. So make sure you have these details on hand.
Prepare the Filing
To start, search for the annual report form on the state’s website. They’re often downloadable as PDFs or available through an online portal, so you don’t have to do anything by hand.
In fact, many states provide pre-filled forms if you log in with your LLC information. Not only can this reduce errors, but it’ll also save time.
Regardless of how you prepare your annual report, always take time to check the information listed. If your LLC has done the following, then ensure you include these updates in your filing:
- Moved
- Changed members
- Updated its registered agent
File the Report
There are two ways to file your annual report: online or by mail. Some states allow in-person filings at the Secretary of State’s office, so if you want to do this, verify the office hours and make an appointment beforehand if necessary.
Online Filing
Online submissions are usually processed faster than mailed filings. Plus, you can get instant confirmation, so we recommend you go this route.
To do an online filing, visit your state’s official business portal. Log in with your LLC credentials, which can either be a business ID or PIN provided by the state. From there, you can follow the prompts to fill out and submit your annual report.
Filing fees vary by state and can depend on the type of LLC or the report’s filing method. For example, expedited services will cost more. Most states will accept credit cards.
Don’t forget to check your state’s policy for late filings too. Fees can range from $50 to several hundred dollars, and non-compliance may even result in your LLC being dissolved.
Mail Filing
Print the form from your state’s website. Fill it out legibly, either digitally or by hand (in blue or black ink).
Mail the completed form to the address provided, including the correct filing fee. Most states will require a check or money order. Use certified mail for tracking if possible.
Confirm the Filing
After you submit your annual report, you should receive a confirmation email, receipt, or stamped copy of your report. Track your report’s delivery if you’ve mailed it, and follow up with the state to ensure it’s been processed; some states have a status lookup tool on their website. If you’ve filed online, then print or save the confirmation page.
Make sure you keep the proof of filing in your LLC’s official records. Not only will this help you stay organized, but it can also assist in future filings or audits.
Set a Reminder for Future Filings
If you don’t file an annual report for your LLC, then you may face fines or penalties. In addition, you’ll have a loss of good standing, which can prevent your company from getting business loans, contracts, or certifications. The state may even dissolve your LLC, which means it won’t be able to legally operate.
For all the above reasons, you can’t afford to not file on time. So it’s important that you set a reminder for future filings.
You can use tools like Google Calendar or project management software to alert you about upcoming deadlines. Some states may send reminders, but it’s safer not to solely rely on them.
If you’re busy, then consider using a professional service. For instance, a registered agent service can handle both reminders and filings for you.
If you don’t already have a registered agent, then use our service. You can pay as little as $147 per year!
Know How to File an Annual Report for an LLC
Being an entrepreneur is tough, especially since you have to handle everything yourself. But now that you know how to file an annual report for an LLC, your job is a lot easier.
Considering that missing the deadline can have heavy consequences, make sure you file every year well before the deadline. And if you’re ever unsure about the process, consult with a legal or accounting professional.
Sign up with Business Anywhere if you need to start an LLC. Our service is free and includes one year of free registered agent services too.
