Published on Feb 23, 2015
By Marcia Richards Suelzer, M.A., J.D.
When you formed your LLC or incorporated your company, your business became an official entity in the eyes of the state. This status as a separate entity is what protects your personal assets from business creditors and liability. But, this separate existence also creates ongoing compliance responsibilities in the formation state. And, if your business expands to other states, you will face ongoing compliance duties in each state where you register as a foreign corporation or LLC.
One of the most crucial of these ongoing compliance obligations is filing an annual report. The term “annual report” is used in a variety of contexts. It’s not uncommon for people to hear “corporate annual report” and think of the detailed, multi-page document that published by publicly traded corporations to inform shareholders, regulators, industry analysts, and potential investors about the company’s financial well-being. Fortunately, this elaborate and detailed exploration of the company’s fiscal health and future plan is not required for a state-mandated annual report.
The state annual report is designed to provide the public and government officials with the information necessary to determine who owns the company and how to contact the company. So the forms generally require only:
Some states, such as Delaware, combine the annual reporting requirement and their franchise tax assessment. In that case, the form will also ask about shares authorized and issued and/or value of the company assets.
Now that you know what an annual report is (and isn’t), here are four more facts you must know.
Staying on top of your ongoing compliance responsibilities can be made easier if you work with a trusted business provider, such as BizFilings. But, whether you partner with a business professional or take the do-it-yourself route, it is essential that you know the annual report filing date for each corporation and LLC that you operate and make sure to file (and pay the state fees) by the deadline.
BizFilings provides automated annual report filing services. We simplify the process, ensuring your annual reports are filed automatically, accurately and on time. No more late fees or additional charges for inaccurate filings. Learn More.