What is an annual report or annual renewal of an entity?
To continue business, all entities registered with the secretary of state, except for general partnerships and sole proprietorships, must renew their entity in most states.
What entails filing an annual report?
The Annual Report, Statement of Information, and Biennial Statement are all the same thing. Annual reports must be submitted by all profit and non-profit corporations (domestic and foreign), limited partnerships, limited liability companies, and limited liability partnerships. To maintain an active business status, it is necessary to file an annual report in most states.
In most states, every entity must submit an Annual Report every year. If an entity fails to submit a form that is properly completed by the due date, they may be administratively dissolved or their authority to transact business may be revoked. In numerous states, the dedicated commission will only send a single postcard notice to remind the corporation of the due date. In compliance with the Article/Business Act of the specific state where the corporation is being run, there will be monetary penalties assessed for Annual Reports that are filed late. Penalties commence accruing on the day following the due date.
When you file an annual report with the Secretary of State, the following information is usually updated each year.
- Physical business address.
- Update the registered agent's address if it is different from the physical address.
- The names of the current members and stockholders of an entity.
