LLC Annual Report – Understanding Annual Report Filing (2022)


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When it comes to the Limited Liability Companies, a lot of work is there that needs to be done once the business entity has formed. For one, you must file your LLC annual report.

This is a kind of document which every LLC business needs to submit by the end of the financial year. The statement consists of all the doings of the business, starting from the transactions it made to the hiring of new employees and so on.

LLC Annual Report

All the annual report filings as per the calendar are prepared with the sole aim of informing the government officers about the happenings in the Liability Company for the prior year.

Importance of Filing LLC Annual Report with Payment

When you form a business, there are various steps related to it. Be it naming your LLC, having a website (check out BlueHost), or having the documents, it is necessary to have it all properly. Similarly, it is essential for every LLC business to file the annual report once they complete one year of servicing in the industry. Once the time comes, your registered agent will remind you of the annual report requirements, and accordingly, you have to prepare it.

However, before you learn more about the report and the steps to file the document, let’s find out the main reasons why this particular form is so important for both domestic and foreign LLC.

Notify the government authorities about the changes

One of the main reasons for completing this paperwork is that after submitting it, you will be able to keep the authorities informed about every type of change brought into the LLC business over the past year. Since the government will be informed, you will be able to avoid any legal cases in case someone wishes to sue you against a reform you have introduced in your incorporation.

Keep a written record of all the doings of the LLC.

When you list down everything in the annual financial report letter, you will be actually making a written detailed record of everything your company has done in the previous year. From the payment transactions, it was involved in the business manager appointment or transference; all the records will be preserved for future references.

Help you in filing properly for the business entity tax.

Lastly, for an LLC entity type, you will need the annual online report to pay the taxes, handle the exemptions, and also avoid any kind of government-imposed penalties.

When to File the LLC Annual Report?

Once the time comes, your registered agent will inform you about the potential dates for the submission of the annual registration report. Following two date forms are usually chosen for the corporations:

  • On the anniversary date
  • A backdated submission as compared to the anniversary date

If you want to avoid the consequences of late reports filing, you need to be very careful about the date and work closely with the members and the directors for the preparation of the same.

Get A Professional Agent

Different states have different regulations when it comes to file an LLC Annual Report. Some states require yearly filing, some require filing once in two years. Hence, it is recommended to get a professional help to file an Annual Report. We have a top 3 list for you to choose the best LLC service from.

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Annual Report Filing Fee

Every LLC has to pay a fixed amount of fee for filing the Annual Report. The fee depends on the state regulations. The Annual Report Fee starts from $20 to $100 approximately. Check out the Cost of LLC to know more about the fees and charges.

Consequences of Not Filing the Annual Report

Filing the annual report is an important process that you need to comply with. Failure to do so might put all the managers and the members in a tight spot. If you do not submit the corporate report on time, the government might levy a huge penalty fee on your company. After repeated reminders, if you again fail to provide the initial report, your LLC might be dissolved temporarily, which will leave the reinstatement process as your option only.

LLC Annual Report Details

Your LLC annual report will consist of the following information:

  • The main business address of your LLC
  • Name and address of all the managers and members
  • All the identification and social security number related to your business
  • Purpose of your LLC
  • List of all the authorized signatories
  • Information about your registered agent

Once the report is made, you can submit it either online or via mail along with the decided filing fee.

Who Can Sign an LLC Annual Report

The director of the board of members, Chief Operating Officer, Chief Executive Officer or all of them are liable to sign the Annual Report of any LLC.

Who Can Sign an LLC Annual Report? An LLC annual report is a vital document for every company. It lists information about the business, including its name, federal identification number, principal place of business, and the services it offers. Most states will ask for the names of the managers and owners of the company, while some states may only require the names of shareholders and authorized signatories. In addition to listing the names of the owners and managers, LLC annual reports will also list the type of business it is.

An LLC annual report is not the same thing as an exhaustive financial statement. While big corporations release annual financial statements, LLCs only need to submit basic information about their operations. These reports list the registered agent, directors, and managers, and the general activities of the business. The report is meant to inform shareholders and other interested parties about the LLC’s activities and financial performance. If you fail to submit your LLC annual report, it will automatically dissolve.

LLC annual reports must be filed with the state every year. However, some states have separate forms for LLC renewal. In these cases, LLC owners can file their reports online. The costs for filing the reports vary by state, so check with your state’s Secretary of State’s office to determine what your fees will be. For more information, visit the state’s website. You can also contact the relevant government regulatory authority. The information you provide should match what the state requires.

In addition to the annual report, LLCs must file a Certificate of Status. This document verifies that the business is active and paid fees. In Wyoming, the LLC annual report costs $62 to file and requires a fee of $.02 per dollar of assets. Alternatively, you can use a nominee service to file the report on your behalf. Typically, this service costs about $100, plus state fees. But before you make the decision to file an annual report, remember to check the fees and other requirements of your state.

A report on risk is essential. It outlines the risks associated with the business. Failure to file the report may lead to an LLC being dissolved, out of compliance, or administratively disbanded. Additionally, a report of this nature will be crucial for the business to remain in good standing. The deadline for filing an LLC annual report depends on your state and its regulations. If you aren’t sure, consult with a tax professional or a legal advisor before filing.

The filing of annual reports is a formality that must be followed. Failing to file an annual report will lead to severe consequences, including taxes, penalties, and in some states, the LLC will be dissolved involuntarily. As such, working with a professional is highly recommended. But remember, an LLC should be operated in collaboration with the members and directors. It’s important to have a clear understanding of the legal requirements of each member before signing an Annual Report.

F.A.Qs

What is the filing fee of the LLC annual report?

The annual report filing fee will depend on the state in which your LLC has, be it the domestic or foreign corporation. Usually, the fees vary from $10 to $500.

What is the date of report submission for my LLC?

The dates for filing the report on time depend on the state where your company is. In some states, the periodic report is asked to be submitted on the anniversary date of formation. In some other states, a prior date is fixed before the anniversary date for submitting the report for an LLC company.

In Conclusion

Annual Reports are mandatory for the LLCs to renew their business. In some of the states, the renewal of LLC needs a separate form to be filled and submitted. However, most of the time by submitting the Annual Report gets the work done. The fee of filing an Annual Report is different depending on the state.

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