What is an annual report?
An annual report known as Statement of Information or Biennial Statement is a regular filing that every business corporation must complete every year, whether it’s a C corporation, S corporation, LLC, LLP, LP, LLLP or any other entity.
What is the importance of annual report filing?
All enterprises are required to file their annual report to the Secretary of State. The purpose of report filing is to keep your business records up to date with the government which allows creditors and other interested parties to look up your business address in case they need to contact you. Annual reports also enable the investors to keep a track of a company's yearly outlook.
What will happen if you don’t submit your annual report on time?
Every corporation must abide by the rules and regulations of the state and must submit an annual business report in the secretary of state office. If you fail to submit the annual report on time, you will be subjected to legal proceedings taken by the state accordingly, including dissolution of the business entity. In many states, concerned departments will send only one postcard notice reminding the corporation of the due date.
Monetary penalties will be assessed in accordance with the Article/Business Act of that particular state in which corporation is being operated. Penalties will be applied after the expiration of due date.
Step by step guideline for annual report submission:
Fill the annual report form:
If you fail to submit the annual report on time, you will be subjected to legal proceedings taken by the state accordingly, including dissolution of the business entity. In many states, concerned departments will send only one postcard notice reminding the corporation of the due date.
The information required for the annual report varies from state to state, but usually includes the following:
• The name and address of the office
• The names and addresses of all the shareholders/ partners
• The names and addresses of the employees
• The name and address of the registration agency/agent
• Detailed information about the type of business and your services
• Annual sales, revenue, profits/losses
Form submission
Once you have completed the form, you must submit it to the state’s office along with the prescribed fee. In some states, you are required to pay annual franchise taxes or other business taxes while submitting the annual report while some may request a paper-filing that has to be mailed to the correct office. You can get the detailed information from the secretary of state’s office or their official website.
What’s the criterion of annual report submission, if your business operates in multiple states?
If your company is operating in more than one state, you are subjected to the rules and regulations of each state, where your business is registered. You will have to follow the similar procedure which you used to file in your home state.
Failing to submit the annual report in time will get you in trouble, while you’re working on the current year’s report; mark the due date for the next submission on your calendar.
Filing an annual report isn’t hard, but it can be difficult to manage deadlines and requirements, especially if your business operates in more than one state. A professional annual report service can help you swim through it easily. You can avail their services and live a stress-free life.
