What Is An Annual Report?
Reports contain entity information which covers each and every aspect of the business on a timely basis. But, unlike other companies, Annual reports in LLC are not just limited within the companies. They not only deal with the progress of the company but also mention yearly updates of LLC. It usually comprises of the name of the company, street address/ business address, details of services, details of shareholders, the signature of members/ shareholders, an Identification number of your business, number of share stocks, etc. Some of the state filing offices also demand owners/ members personal address. These reports are submitted to the Secretary of State each year or biennial, depending on the state. These reports are to be submitted in the state filing office. Some states provide online filing services whereas, in some states, it still works on hard copy. There is no fixed format of an annual report; the format varies from state to state.
Purpose Of An Annual Report
It ensures that your LLC is functioning in a good position. The report crosses checks if there are any kind of changes in the name, address, registered agent, your growth, finances, etc. Failure of an annual report can lead to confiscation of your business, license and negative consequences on the members or owners. If you don’t pay annual maintaining fees or annual report to the state than, the state can either close or dissolve your LLC. And, having a low stand in the market is not good for the company. According to your vigilance, it can either work as boon or curse.
Many states accept annual reports in different forms; refer to the chart given below:
Other than these legal annual reports, many companies create another annual report to outlook a company’s profit and loss and yearly performance. Reports are just like any other annual reports, including:
- Balance Sheet
- Future assets/ completed assets
- Market Competition
- Volume and value of stocks/shares
- Project revenue, financial projection
- Letter by a chairman or short messages by members
- Opportunities/ Risk
Filing Fee And Due Date
A filing fee varies from state to state but on an average, it ranges from $10 to $800 per year. The due date also varies according to the entity and state. Few states orders to file annual reports on the company’s anniversary date or on predetermined dates. Filing tenure can be yearly, biennially, after 10 years or according to state and its requirement.
How To File An Annual Report
An annual report can be filed online through the state’s verified website and filing fees can be paid through credit card or debit card. Another method is through the mail. For mail, the report has to be written in blue or black pen (or computerized report). One copy should be kept by the company for business records. After which, reports can be mailed to the state along with filing fees in the form of cheque or money order.
According to the company’s convenience, any method can be chosen. But regardless of the method filing the report on time is more important.
Consequences Of Annual Report
If you don’t fill an annual report on time, the state may charge you penalty fees. Failure of an annual report can lead to confiscation of your business; license and negative consequences can be taken on the members or owners. If the state has strict rules and regulations, it can either close or dissolve your LLC and having a low stand in the market is not good for your company.
In case, you have hired a company to form your LLC, then the annual report is your responsibility, in order to keep your company in compliance and good standing.
Where Do You Get Annual Reports – State Wise?
Many people find and file annual reports through their registered agents. Some of them find it by themselves after creating an LLC. In case you are unable to find an annual report for your state, the links given below in the following table may help you to find one.