Many business owners choose the LLC structure because, compared to incorporation, it's relatively low maintenance. With that said, there are a few things you'll need to do to launch an LLC and to maintain its legal standing. For instance, you'll need to pay one time LLC fees when you file the documents to form an LLC and yearly fees to keep your LLC in compliance and in good standing. And of course, you'll need to file an annual report.
If you're new to running a business, annual reporting may sound tedious, or even intimidating. It may be helpful to know why this report is required, what it should include, and how to file as efficiently as possible.
What's the Purpose of the Annual Report?
First things first: Why do you need to file an annual report for your LLC?
Most fundamentally, you file a report to keep your company compliant with the state. In fact, in most states, failure to file the annual report will result in your LLC getting dissolved!
But this isn't just an arbitrary regulation. The annual report informs the state government that your LLC is still functioning, while also providing an update regarding your LLC's contact information.
Ultimately, this is a very small, fairly simple way to make sure your LLC remains in the government's good graces.
What Should You Include in the Annual Report?
Your annual report should include just a few basic pieces of information such as:
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The name of your LLC.
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Your office address.
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Information regarding your Registered Agent.
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An LLC number.
Don't have an LLC number? You should be given one by your Secretary of State when you first set up your LLC. This is a number that the state uses for purposes of identifying and referencing your LLC. You can almost think of it as a driver's license number, except it's for your business entity instead of for you as an individual.
Does it Cost Money to File an LLC Annual Report?
There's no such thing as a free lunch, and apparently there's no such thing as a free report filing, either. The good news is, filing your LLC annual report probably isn't going to break the bank. Reporting fees vary by state, and can range from a meager $9 annually to a heftier $800.
To find out how much you'll need to pay in order to file your LLC annual report, check with your Secretary of State's office.
What's the Due Date?
Like fees, due dates can vary from one state to the next. Most states require an annual report, but some only make you file biennially. In some states, you can actually file reports just once a decade! Again, it's simply a matter of checking the specific requirements of your state government.
What's the Best Way to File the Annual Report?
There are a couple of options for filing your annual report.
One option is to do things the old-fashioned way, completing your report by hand and then mailing it in. Just make sure to use blue or black ink (or type and print it), provide all necessary information, and save a copy for yourself. Mail it to your Secretary of State's office with a check or money order for the filing fee.
Of course, filing digitally is usually going to be the more convenient option. Check your Secretary of State's website for an online submission form, and be prepared to pay the filing fee via credit or debit card.
What Happens for LLCs That Don't File?
If you don't file your annual report on time, your Secretary of State will likely slap a late fee on you... but if you're delinquent for too long, your LLC will be dissolved altogether.
Some state governments will be more lenient than others, but you really don't want to push it. Also note that many states do send out reminders when your report is almost due, but you can't bank on that, as some states don't do reminders.
Keep Up with Your LLC Reporting Duties
The annual report isn't too tedious to fill out, but it is an important document for you to complete. Make sure you have this on your radar, and check with your local Secretary of State if you have any concerns or questions.
Author Bio
Amanda E. Clark is a contributing writer to LLC University. She is a graduate of Eastern Michigan University and holds degrees in Journalism, Political Science, and English. She became a professional writer in 2008 and has led marketing and advertising initiatives for several Fortune 500 companies. She has appeared as a subject matter expert on panels about content and social media marketing. She regularly leads seminars and training sessions on trends and tactics in professional writing.
* This is a contributed article and this content does not necessarily represent the views of techtimes.com
