An LLC Annual Report is a document that LLCs must file in many states annually. The report’s purpose is to update the LLC’s contact information with the Secretary of State or a similar government agency. The report is sometimes called a “Statement of Information” or an “Annual Registration.”
The LLC Annual Report differs from federal tax returns and state tax returns that LLC owners must file yearly. The Annual Report is simply an information return filed at the state level.
Some states require LLCs to file Annual Reports, while others do not. In states that do not require an Annual Report, LLCs may still need to file other types of documents or meet other filing requirements. So let’s take a closer look at an LLC Annual Report, its use, and how to file one.
Why Do LLCs File Annual Reports?
LLCs must file Annual Reports to keep their business entity status active with the state, and if it does not file its Annual Report, the state may revoke the LLC’s status and dissociate the LLC from the state. This can have severe consequences for the LLC, including preventing the LLC from conducting business in the state or suing in court.
For an LLC in Texas, the Annual Report is actually called a Franchise Tax Report. And this is due every year in May. Instead of getting filed with the Texas Secretary of State, it gets filed with the Texas Comptroller. For most small business owners, they just have to submit information and they don’t owe any tax (currently, for the 2022 and 2023 report years, that threshold is $1,230,000). Meaning, if your LLC makes less than $1,230,000 per year, you must file a Public Information Report (PIR), but there is no tax due. If a Texas LLC makes more than $1,230,000 per year, then it still needs to file the PIR, but it also needs to file and pay tax via the EZ Computation Report or the Long Form report.
Again though, the Annual Report is not a tax document and should not be confused with an LLC’s federal tax return or a state tax return.
Filing an LLC Annual Report
The first step in filing your LLC’s Annual Report is to gather the required information. You will need to check with your state’s requirements and gather the necessary information. Typical things needed are the LLC name, Entity ID Number, business address, and Registered Agent information.
Next, you will need to determine where to file the report. In most states, the Annual Report is filed with the same office that handles LLC formation paperwork, usually the Secretary of State’s office. You can typically find the correct office and filing instructions on the secretary of state’s website.
After this, you must fill out the Annual Report form, which is available on the Secretary of State’s website. Then submit the form to the correct office and any required filing fees.
In some states, the LLC’s Annual Report is due on or before the LLC’s anniversary date. But in other states, it’s due at the same time every year, for all LLCs (for example, all LLCs in Florida have their Annual Report due by May 1st). In most states, the LLC will be required to pay a late fee if the Annual Report is filed late. Additionally, if the LLC does not file its Annual Report for several years, the state may revoke the LLC’s status and dissolve the LLC (shut it down).
This can have severe consequences for the LLC, including preventing the LLC from conducting business in the state or suing in court.
If you have any questions about your report, you must speak to an experienced business attorney who can help you understand your state’s requirements and ensure that your LLC remains in good standing with the state.
Information Included in an LLC Annual Report
An LLC’s Annual Report typically includes the following information:
- The LLC’s name and address
- The LLC business address
- The Registered Agent’s name and address
- The LLC’s Entity ID Number
- The names and addresses of the LLC’s members (only in some states)
Some states may require additional information, for example, some states require the LLC to list the names and addresses of its officers or managers. Additionally, some states require to describe their business activities.
Cost to File an LLC Annual Report
The cost of filing an LLC Annual Report varies from state to state. In most states, the filing fee is between $20 and $100. In other states, it can be as high as $500 (Massachusetts) or $800 (California). In some states, the LLC may be required to pay an additional late fee if the Annual Report is filed after the due date.
Filing LLC Annual Report Online
In most states, filing your LLC’s Annual Report online is possible. You can typically find the online filing portal and instructions on the secretary of state’s website. However, note that not all states allow LLCs to file Annual Reports online. If you are unsure whether your state allows online filing, you should contact the Secretary of State’s office for more information.
When LLC Annual Report Is Processed
Once your LLC’s Annual Report has been processed, you should receive a confirmation from the Secretary of State’s office which may sometimes include a copy of the filed Annual Report. If you do not receive a confirmation, you should contact the Secretary of State’s office to confirm that the Annual Report was received and processed.
To File an LLC Annual Report
The process for filing an LLC Annual Report varies from state to state. However, the general steps are as follows:
- Find the correct form: The form you need will vary depending on your state, and you can find the necessary forms and instructions on the Secretary of State’s website.
- Complete the form: Once you have found the correct form, you must complete it and submit it to the correct office, along with any required filing fees.
- Wait for confirmation: Once your LLC’s Annual Report has been processed, you should receive a confirmation from the secretary of state’s office. This may include a copy of the filed Annual Report, but in most states, they don’t do that. You’ll just get a confirmation notice. If you want a copy of your LLC’s Annual Report, you may be able to download a copy from the Secretary of State’s database. But this isn’t necessary. If you have the confirmation, you’re all good.
An LLC’s Annual Report is a required filing in most states with the Secretary of State’s office and includes information such as the LLC name, LLC address, and Registered Agent information. Failure to file a report can result in the LLC being dissolved by the state. Therefore, it is essential to ensure that the report is filed on time and all information is included.
Matt Horwitz is the founder of LLC University, a website that teaches people how to form LLCs. Matt is the leading authority in LLC education and is featured in CNBC, Yahoo Finance, Entrepreneur Magazine, and US Chamber of Commerce. Matt holds a Bachelor’s Degree in business from Drexel University with a concentration in business law. LLC University®, established in 2010, was the first company to create free LLC courses in all 50 states.