One could argue that there are two kinds of people: creative and technical. Sure, you can have a natural proclivity for both, but it’s still likely that you fall more clearly in one camp or another. As a business owner, it might be helpful to keep this in mind — as you may have already discovered with your Limited Liability Company (LLC), running a successful business involves both creative and technical skills.
Take, for instance, the administrative side of your company. Even if you’re a natural when it comes to designing and marketing your products, you may run into a bit of trouble tending to tasks like your business Annual Report. If you need a bit of assistance in this area (or, perhaps, in keeping your filing deadlines straight), you’ve come to the right place. Let’s dive into what an Annual Report is and how you can easily file yours.
What Is an Annual Report?
As its name implies, an Annual Report is a document that incorporated companies file each year, which provides a summary of their activities to governing authorities, typically at the state level. Sole proprietorships and partnerships are usually not required to file an Annual Report, as they do not enjoy the benefits of incorporated companies.
The goal here is to ensure that the state is kept updated on any changes within your organization, such as your business interests and ownership. This information includes the names and addresses of the company, Registered Agent and other people of interest, including everyone on the board of directors and those who are designated as managing members.
You may, in fact, be the one whose personal information is on record in the Annual Report as the Registered Agent. This tends to be either the owner or some other high-level person within the management team, but it may also be a specialized Registered Agent service provider. Regardless, the Registered Agent is bound to the regulations within the company’s home state, which include receiving notices to file the Annual Report with your secretary of state. But be aware that some details of the process are different depending on where you’re based.
Though you should check with your state to confirm the exact details of what’s required with the Annual Report, these documents typically list the company’s mission statement and overall objective, its principal business address, the names and addresses of key individuals (as mentioned above), critical identification numbers and available data on company stock shares.
So we’ve covered the basics of what an Annual Report is and what they generally include. But how do you go about confidently filing one with your state and ensuring the continued legal compliance of your company? Let’s dig into it.
Tech-savvy business owners will be pleased to know that most states provide the option to file an Annual Report online on your state’s website. Most states include a standard fee, which varies widely from $50 to $400. Likewise, the required filing deadline for your Annual Report varies from state to state, though it tends to be either the date on which the company was formed or a pre-determined date applying to all organizations.
Despite the name, Annual Reports aren’t actually required every year in all states. In some states, a report only needs to be filed every two years. Similarly, Annual Reports are sometimes known as “statements of information,” and certain companies may need to file supporting documentation in tandem with their report.
Based on your business activity, home state and other considerations, you may need to include an executive summary, a letter from the board of directors, any anticipated expansion plans or any expected threats to your business. In almost all cases, you’ll need to pay specific attention to your finances, including the balance sheet, profit and loss statement and financial projections.
How We Help
As you can probably tell, “Annual Report” is largely an umbrella term used to cover a wide range of documentation relating to your LLC or other company. Especially since every state has different rules, the process can be understandably unnerving for business owners determined to get everything in order before finalizing their report. That’s where Incfile comes in.
We have extensive experience facilitating incorporation and related services for companies just like yours. Our team is ready to assist you in understanding your exact filing requirements and getting every bit of data collected and submitted on schedule. By entrusting this task to Incfile, we’ll save you the hassle of having to comb through all your records and assemble them to match your state’s precise requirements.
And if there’s one thing you want to avoid, it’s the consequences of not filing an Annual Report. While some states will simply penalize your company with late fees, others will go as far as dissolving your corporation. We’ll handle the entire process to ensure that you meet all the legal requirements and get your Annual Report filed so that you can spend time focusing on growing your business and keeping your customers happy.