State Compliance & Annual Report Filings
If you have a registered business such as an LLC, corporation, or nonprofit, you likely have an annual report or similar state compliance filing to be mindful of. Specific requirements depend on which jurisdiction your business is registered in. When you hire us as your registered agent, we’ll include this compliance filing for free—all you have to pay is the state fee.
What Is an Annual Report?
An annual report is a document your business submits to its state of registration each year. Often similar in content to the business formation documents that officially created your entity, an annual report keeps the state up-to-date on your business’s information. The report ensures the state has current contact information and is aware of any relevant changes, such as a new address or change of registered agent.
A few states require compliance filings every two years. Depending on your jurisdiction and its reporting cadence, you may encounter different names for state compliance filings, such as biennial report, periodic report, annual renewal, and statement of information. You’ll also encounter different fee amounts. In some states, you’ll pay as little as $10, and in others you’ll owe hundreds.
This state compliance filing is not to be confused with another type of annual report that’s submitted to LLC members or corporation shareholders. Where those reports are full of financials and granular details, the state-mandated version is more of a check-in.
What’s the difference between an annual report and state compliance filing?
Your annual report is a form of state compliance filing. The terms are often used interchangeably, but refer to the same type of state report.
Is Filing an Annual Report Mandatory?
If your state has annual compliance (or equivalent) requirements that apply to your business, then filing one is mandatory. While it can be hard to keep track of this filing’s deadline and fee requirements, it’s an essential part of ensuring your business remains in good standing with the state.
What if I don’t file an annual report?
Consequences for failing to file an annual report vary by state. If you miss the due date, you’ll typically enter a grace period in which to file before harsh penalties kick in. That said, late fees will likely apply.
If you neglect to file your report by the deadline and/or within a provided grace period, your business may lose its good standing with the state. In some cases, failing to file can even lead to administrative dissolution. If your LLC or corporation is dissolved, you’ll have to file additional paperwork and fees to get it back in running order.
What Information Do I Include in an Annual Report?
Every state has different requirements for what to include in an annual report. Additionally, specifics vary by business type—corporations and LLCs are often asked to provide slightly different pieces of information. But in general, annual reports often ask for information similar to what was queried on your business’s formation documents. Required information often includes:
- Business name
- Physical business address and mailing address (if different)
- Registered agent name and address
- Member/manager/officer names and addresses
- Contact information
How do I submit an annual report?
Your state will provide instructions for acceptable means of annual report submission. Many states allow for both online and paper filings. However, states are increasingly moving their business filings online. If you’re in a time crunch or want to move through processing more quickly, online filing is almost certainly the way to go.
How much does an annual report cost to file?
Annual report fees vary by state. Many states charge in the neighborhood of $20, but others charge much more. If you’re in a state with a franchise tax, pay attention to whether this is lumped in as part of your compliance filing. For example, in California you may owe the $800 franchise tax fee at the same time that your report is due. In Massachusetts, LLCs owe $500 alongside their annual reports. Because fees vary so widely state-to-state, make sure to check your requirements and plan accordingly.
Frequently Asked Questions
Do I have to file an annual report for my LLC?
Most likely. Though not all states have annual report requirements for LLCs, most do. Visit your state’s business division website to learn about the specific filing requirements your business needs to adhere to.
Is an annual report the same as filing taxes?
No. Your annual report filing and tax filing are not the same thing. Even if your business is registered in a state with a franchise tax that’s due alongside your annual report filing, they are not exactly the same thing. There is nothing that replaces any your business’s required tax filings.
What is an annual report for a small business?
A small business’s annual report is a compliance filing that’s submitted to its state of registration by a specific date. It includes pertinent information about the business, such as its address and registered agent.
Some small businesses may also create a different type of annual report that’s focused on annual earnings and sent out to owners or investors.
What federal compliance filings do I need to submit?
Once your business is formed, you’ll likely need to submit a Beneficial Ownership Information (BOI) Report to FinCEN. This federal filing is free to submit, but you can be charged hundreds of dollars in late fees if you fail to do so. When you hire us to form your entity or be your registered agent, add BOI Filing so we can take care of this for you.