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Stay in the Know: LLC Annual Report Requirements

by RT Accounting Services

What is an Annual Report?

An annual report for an LLC is a document that must be filed each year (or sometimes every two years) with the state to keep the company in good standing. It ensures that the government has up-to-date information about the LLC, like its address, owners (members), and other basic details. Filing this report is usually a legal requirement.

What Is Usually Included in an LLC Annual Report?
  1. LLC Name: The official legal name of the LLC.
  2. Business Address: The principal office address of the LLC.
  3. Registered Agent: The name and address of the person or service that receives legal papers for the LLC.
  4. Owners (Members) or Managers: The names and sometimes addresses of the LLC’s members (owners) or managers.
  5. Business Activities: In some states, a brief description of what the LLC does.
  6. Filing Fee: A payment that must be made along with the report (this varies by state).
Why Is It Important?
  1. Stay Legally Active: Filing the report keeps the LLC in good standing with the state. If you don’t file, the state might charge penalties, suspend your LLC, or even dissolve it.
  2. Keep Records Updated: The government uses this information to contact the LLC if needed.
  3. Avoid Penalties: Failing to file can result in late fees or loss of liability protection.
When and How Do You File?
  • Timing: Most states require annual reports, but some only require them every two years (biennially). The deadline varies by state.
  • Filing Method: Many states let you file online through the Secretary of State’s website. Others accept paper filings.
  • Filing Fee: The cost ranges from $10 to $500, depending on the state.
What Happens if You Don’t File?

If an LLC fails to file its annual report, the state might:

  • Charge late fees or penalties.
  • Suspend or dissolve the LLC.
  • Remove liability protections for its owners.
Conclusion

In short, an annual report for an LLC is a required filing that keeps the company’s information current with the state and maintains the LLC’s legal status. For information about your specific state’s requirement, please reach out to RT Accounting Services!