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The objective of the annual report is threefold. The annual report keeps the Government informed about all the updates, communicates about all the modifications or changes, & keeps the LLC members informed about the necessary taxes and costs. This article has all the information about the Virginia LLC annual report filing in Virginia.
An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This yearly report is a record of all the company’s activities in an entire year. It is also referred to as the Annual Franchise Tax Report because it helps in filing the franchise tax.
Content of the Annual Report
Typically, the annual report filed by a Virginia LLC (or any other business entity for that matter) will include all the information related to its business & members. The standard contents of the annual report or the annual franchise tax report are
- Office Address of the LLC
- Names & Addresses of the Members & managers.
- Identification Documents
- Social Security numbers of the key members of LLC
- The objective of the business of LLC
- List of all the signatories of the LLC
- Information of the registered agent, if any
LLC Tax Update: Before you file your LLC annual report in Virginia, make sure to pay all the tax dues for the year.
Virginia LLC Annual Report
An Annual report is essential for all business types. It authenticates that the information provided to the Secretary of State is accurate & updated. The information provided in the annual report helps the State officials to ensure that all the companies pay taxes. The Virginia Annual Report is filed with the Virginia State Corporation Commission. Note that the LLC Annual Report is not the same as the Certificate of Good Standing in Virginia.
Does the State of Virginia Require an Annual Report Filing?
A business entity in Virginia to file an annual report with the Virginia State Corporation Commission to remain in the Good Standing Status. This rule applies to all the legal entities, such as C Corporations, Limited Partnerships, and Limited Liability Companies, that are bound to file the Annual Report.
How to File a Virginia LLC Annual Report
The Virginia LLC Annual Report can be filed online or by mail. An LLC operating in Virginia must file its Annual Report every year by the end of the anniversary month.
In Virginia, annual reports can be filed with the Secretary of State online by following a few simple steps.
- Step 1: Visit the Virginia State Corporation Commission’s Online File Login Page.
- Step 2: Sign in with your username & password, or create an account by clicking on the register button.
- Step 3: Once you have signed in, fill in all the details & start filing the annual report online.
Filing Virginia LLC Annual Report By Mail
To file the LLC Annual report in Virginia, you can follow the steps as mentioned below,
- The state of Virginia sends the annual report form to the Registered agent’s office before the due date of filing. You can also request that the Annual Report Form be sent to your company address through this online link.
Virginia LLC Annual Report (Domestic & Foreign)
| State Office: | Virginia State Corporation Commission, 1300 East Main Street PO Box 1197, Richmond, VA 23218 Links to Website |
| Due Date: | An LLC operating in Virginia has to file the Annual report every year, by the end of the anniversary month. |
| Filing Fee: | The Annual Report filing fee is $50. |
| Penalty: | Any report filed after the due date may result in a $25 late fee & the LLC losing good standing status. If there is a further failure in filing the report, it may result in the dissolution of the LLC. |
| Filing Method: | An LLC can file the Annual Report Online or by mail. |
| Forms: | The Form can be requested on this link. |
| Important Information: | Once a Domestic or Foreign Virginia Limited Liability Company submits the Annual Report along with the prescribed fees to the Virginia State Corporation Commission, the filing is said to be complete. |
Annual Report Deadline
As mentioned above, filing the Annual Report is a mandatory requirement for all LLCs. An LLC operating in Virginia must file its Annual Report every year by the end of the anniversary month.
Penalties for Non-filing or late filing
An Annual Report is one of the important documents filed by an LLC. Any report filed after the due date may result in a $25 late fee & the LLC losing good standing status. If there is a further failure in filing the report, it may result in the dissolution of the LLC.
Tax Structure in Virginia LLC
For an LLC in Virginia, the tax structure is very simple and flexible. First of all, every LLC has the advantage of a pass-through taxation. On the other hand, an LLC can choose the desired tax structure at the time of formation. There are two ways an LLC can be taxed,
Default Status:
When filing your LLC in Virginia, entrepreneurs have the opportunity to select a desirable tax structure. If they do not choose a specific structure, the LLC will be taxed under the ‘Default Status’. That means the tax will be levied based on the number of LLC members.
For a single-member LLC, it is considered a ‘disregarded entity’. This means that a single-member LLC does not have to file a federal income tax return, but the individual (or the LLC member) must file it personally. In the case of a single-member LLC, it is treated as a sole proprietorship.
In the case of a multi-member LLC, it is considered a partnership for tax purposes. Hence, the default status for a multi-member LLC is a partnership firm. LLCs are required to file a separate ‘partnership form’ with the IRS.
LLCs with Spouses: There are specific states (like California) where starting an LLC with a spouse is considered a single-member LLC instead of a partnership or multi-member LLC. In such cases, both husband and wife will be liable to pay taxes
Elective Status:
For an elective status, the LLC can choose the tax structure while filing the formation documents. LLCs in Virginia should file a separate tax form if they do not wish to be taxed by default. Many LLCs choose to be taxed as a corporation to enjoy corporate benefits, especially if the LLC is large.
LLCs can choose between S-Corp and C-Corp tax status when filing the formation document in Virginia. In that case, the concerned LLC needs to submit a separate form for each type it chooses. For the S-Corp type, Form 2553 must be submitted; for the C-Corp type, Form 8832 must be submitted.
In Virginia, there may be local taxes (inquire with the local government body for details) that LLCs must pay to be updated. Make sure to pay and update your tax dues before you file your annual report in Virginia.
Annual Report vs Certificate of Good Standing in Virginia
The Certificate of Good Standing is a legal document that certifies that an LLC in Virginia is in good standing and compliant with all applicable laws. That includes an updated annual report as well. While Annual Reports show if your company is up to date.
They are both similar documents (although not identical) and serve as proof of the company’s good standing. The Annual Report is a domestic document, whereas the Certificate of Good Standing in Virginia is a mandatory document if the LLC is going beyond the home state to a foreign state. There are several ways to obtain a Certificate of Good Standing in Virginia.
In Virginia, the Certificate of Good Standing can be obtained online. One can request a certificate of good standing by entering the Entity Name or Entity ID. Once the payment is done online, the work is done. A filing fee of $6 must be paid to the SOS to obtain the Certificate of Good Standing. The amount might be more depending on the number of copies you request. If you request additional copies of documents, you may incur an additional fee.
Generate Certificate of Good Standing:
- Online application: Log in to request the certificate of good standing
- Offline application: No offline (PDF) file is available
- Fees: $6.00 for each copy
Why Do LLCs Have to File the Annual Report?
Some states are not required to file this yearly report, commonly referred to as the Annual Report. However, there are several reasons why states require an LLC Annual Report. Here are some reasons,
To Maintain the Accuracy of the Information
An annual report filed by the LLC has all the updated information about its official addresses & the names or addresses of all its officials. This updated information allows the State authorities to track down any LLC when communicating.
To Provide the Correct Correspondence
Often, creditors or other entities willing to transact with the LLC require the correct correspondence address. If this information (which can only be modified with the help of an annual report) is not updated annually, such entities will be unable to communicate with them.
To Notify the Government About All the Significant Changes
If you have changed your main business address or had new business appointments of managers or members, the annual public information report notifies the State Government Entities about it. So, the next time someone questions a newer reform that you have introduced in your LLC, you will be saved because you had submitted the information to the Government.
To Provide an Activity Log of an LLC
The Annual Report is like an activity log of the LLC. It brings on record all the transactions, new associations, appointments, etc. & keeps those records intact for all future references.
To Help You With the One-time Filing of Taxes
The annual report is an excellent means to keep you on your toes in case of your dues payment. Every LLC is required to pay taxes through the annual report filing. By filing the report on time, the LLC can manage the exemptions & can avoid penalties imposed by the Government.
To Enable the State to Track the Payments
The government authorities use all the information filed through the annual report for tracking the payment of State Taxes.
Seek the Help of a Registered Agent
Every State will have a different rule for filing the Annual Report. Usually, it is submitted annually, but in some states, it is submitted every other year. Some states require the filing of the report only once in ten years.
Not only the timing, but also the mode of filing, proper addresses, exemptions, legality, annual report compliance, etc., must be taken care of when paying taxes or filing reports with state authorities. In many such scenarios, it is advisable for an LLC to appoint a Registered Agent to manage all this. Explore the best LLC service that offers comprehensive services at an affordable price. An experienced agent is required for:
- Streamlining the mandatory processes & filing.
- Sending or receiving any documents.
- Reminding you of important tax filing and payment dates.
- Simplifying the filing procedures.
- Avoid any penalties.
- Flexibility in working.
- Maintaining Privacy (as it keeps your personal records off the public record)
You can read more about a Virginia Registered Agent here.
FAQs
Yes, an annual report is essential for every business entity in most states. Some states also require the filing of biennial or decennial reports.
A Yearly Business Report, or the annual report, typically incorporates the address of the business, names & addresses of the members, a list of all signatories, SSNs of the members, & details of the registered agent.
A Registered Agent is well-aware of all the filing requirements, annual report filing fee, & overall Annual Report compliance. The knowledge & proficiency of the registered agent allow the smooth filing of reports & other fees.
The most important thing for filing an Annual Report is record-keeping. Ensure that you document every transaction thoroughly.
Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing.
In Conclusion
An LLC must file various types of reports, such as the Application for Reinstatement and the Periodic Report of a Limited Partnership (usually filed by an exempt nonprofit organization), depending on the type of entity. The Annual Report is mandatory irrespective of the entity type. It requires compliance across entities.
Additionally, please note that an annual report is not the same as a Certificate of Good Standing in Virginia. They might look similar, as many parts of the certificate are the same as those in the annual report; however, it is a completely different document and should be compliant with the filing requirements for the annual report in Virginia.