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.
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.
On this page, you’ll learn about the following:
Importance of filing the 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 WPengine), 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.
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.
Steps to form the LLC annual report
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.
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.
The dates for filing the report on time depends 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.