The annual report of an LLC is also known as a statement of information since it is intended to give your state with critical facts about your firm as well as any updated information or changes that have happened since the prior filing period. Filing this report also maintains your LLC in good standing and in compliance with all state requirements, preserving your limited liability protections and other LLC advantages.
Table of Contents
What Information Is Included in an Annual Report?
Each state has its own set of LLC rules and regulations, as well as different criteria for what should be included in an annual report. Typically, your yearly report will contain the following items:
Your primary place of business
Your members’ and supervisors’ names and addresses
All crucial company identification numbers, such as your state entity number
The goal of your company
A list of those who have been permitted to sign
Information about your registered agent
Fees and Due Dates
The reporting schedule and costs needed vary greatly by state. Some states require all entities to report on a certain day, while others require yearly reports to be submitted on the anniversary of your date of creation. Fees range from zero to $500.
What Is the Process for Submitting an Annual Report?
The majority of states let LLCs to submit their reports either by mail or online. When the due date approaches, many will send a form and warning to your registered agent to ensure that you do not miss your reporting deadline.
What Happens If I Do Not Submit My Annual Report?
While it may seem to be nothing more than a formality, completing your annual report on time is critical. Failure to file may have serious implications. Some states may levy a late charge, fines, and/or taxes, while others may even dissolve your LLC involuntarily.
How Frequently Do I Need to Submit an Annual Report?
Most states, as the name implies, require annual reports to be submitted. This timetable, however, is not ubiquitous. Some states have varied reporting requirements, with some requiring reports to be submitted biennially rather than yearly. Others have completely different reporting obligations. Pennsylvania, for example, only requires LLCs to make reports every 10 years, while a few states require no reporting at all. The specifics of each state’s reporting obligations are shown below.
Extra Optional Business Reports
In addition to yearly reports, you may consider preparing the following reports but are not obliged to submit to the state:
Balance sheets, earnings and losses, and financial estimates and forecasts are examples of financial reports.
The executive summary is a one-page document that contains all of the company’s major financial and other relevant information.
Report on Risks: This report is intended to outline any business risks and how they are being handled.
Filing timely and correct reports to your state, as well as maintaining appropriate records, are essential steps in keeping your LLC in good standing and safeguarding yourself and your company. Check all reporting and other compliance requirements in your state or states of creation for the most up-to-date requirements when establishing your firm as an LLC.