The LLC Annual Report is a yearly filing requirement after forming an LLC. Most states will send you a reminder to file your Annual Report prior to the deadline, but not all states require one; for example, Delaware does not mandate it. Filing an Annual Report and paying the associated fee will help your company stay in good standing with the state.
What is an LLC Annual Report?
Each year there is a requirement for an LLC to file an annual report. This filing includes all the details of a company’s activities throughout the entirety of the year. The importance of the annual report is huge.
Essentially, the purpose of the Annual Report is to keep your LLC in compliance. If you fail to file your Annual Report, then your LLC will automatically be shut down by the state in which it is formed.
These reports are created to give state governing authorities more information regarding all of the names and addresses of those who encompass an LLC. This includes the directors, managing members as well as company and registered agent address.
Delaware LLC Annual Report Fee
Delaware does not require an Annual Report for LLCs; however, they are required to pay an annual tax of $300.00. This tax is due on or before June 1st of each year.
Information Included in the Annual Report
Company Address
This should be the legal head office address of the company.
Members and Managers
In an LLC, the “members” are the owners of the company. The Annual Report should include the names and addresses of all the managers as well as members of the business.
Purpose of Business
Whether your business invests in real estate or creates cat toys, you must declare the purpose of why you do business.
Business ID Numbers
These are any and all identification numbers for your business, including State ID.
Shares Issued
You must state how many members exist in the business. This includes if you have any shares of stock issued by the business.
Registered Agents
If you choose to have someone other than the members (owners) as the registered agent, then you will need to declare this. Be sure to recognize any authorized signatories and registered agents.
How to File an LLC Annual Report
There are usually two methods available to file your Annual Report: online or by mail. Always check with the state where your LLC is registered, as rules and due dates may differ.
By Mail
Filing by mail means you will need to either write in your answers to the report in blue or black ink. You can also fill it out digitally and then print it out. Be sure to make one copy for your records before sending out the other copy to the state. You will need to include your annual fee with your report.
Online
If you decide to file online, then you will do everything on the state website. You can pay the filing fee with a debit or credit card, and send it off. This seems to be the simplest option with less room for error.
Annual Report Cost
Filing fees vary when it comes to Annual Reports. This can range anywhere from $9 per year up to $800 per year depending on the state.
What Happens if You Don’t File an Annual Report?
If you fail to report annually, your business could incur fines imposed by the state. You will likely receive a few reminders to pay this fee. If you continue to ignore them, your LLC could be administratively dissolved. This means that you will no longer have an LLC in that state, and you will need to start over and re-file if you wish to continue business under an LLC. Be sure to continue filing your Annual Report and paying your annual filing fee if you intend to continue business.