Owning a business comes with a lot of paperwork, from balance sheets to inventory lists. Then there are the business filings you must periodically submit to the state to keep your business in good standing. The most common one is the annual report.
Nearly every state requires certain types of businesses to file an annual report. Failure to file can cause serious problems for your business, so it’s important to submit your report accurately and on time.
We’ll explain what can happen if you don’t file and how to stay in good standing with the agency that handles annual report filings in your state. First, learn about what an annual report is, and which businesses are required to file.
What Is an Annual Report?
An annual report (sometimes called a statement of information) is a mandatory business filing in most states. These reports disclose a company’s activities for the last year and keep shareholders, employees, and the public updated on the organization’s financial performance.
Depending on the state, annual reports range from simple documents that list company members and other basic information about a business to comprehensive reports that outline a company’s financial performance and future goals and objectives.
Who Is Required to File?
Do you have to file an annual report for an LLC? It depends on the state. Most states require an annual report for the following types of businesses:
- Corporations (foreign and domestic)
- Limited liability companies (LLCs)
- Partnerships (LLPs and LPs)
But rules vary by state. Some states, like California, also require cooperatives, credit unions, and religious corporations to file an annual report. Others, like Missouri, don’t require LLCs and partnerships to file.
Make sure you know what the filing requirements are in your state. If you’re required to file an annual report every year, submit it on time to keep your business in good standing with the state.
Check out the infographic below to learn what can happen if you don’t submit your required filing and how to file an annual report quickly and easily online.