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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 Connecticut LLC annual report filing in Connecticut.
An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This annual report is a comprehensive record of the company’s activities for the entire year. It is also referred to as the Annual Franchise Tax Report, as it facilitates the filing of the franchise tax.
Contents of the Annual Report
Typically, the annual report filed by an LLC in Connecticut (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 the LLC
- The objective of the business of the 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 Connecticut, make sure to pay all the tax dues for the year.
Connecticut LLC Annual Report
Similar to many states in the US, LLCs in Connecticut are required to file an Annual Report in the state. The Annual Report enables the Secretary of State to monitor changes in the company’s address or any new appointments of members. Filing the Annual Report is an essential rule for all types of business entities, including Corporations, LLCs, & Non-profit Organisations operating in Connecticut. Note that the LLC Annual Report is not the same as the Certificate of Legal Existence in Connecticut.
Does the State of Connecticut Require an Annual Report Filing?
In the State of Connecticut, it is mandatory for all Business Entities to file an Annual Report. This includes 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 Connecticut LLC Annual Report
The Connecticut LLC Annual Report can only be filed online. An LLC operating in Connecticut is required to file its Annual Report with the Connecticut Secretary of State by March 31 each year. In Connecticut, annual reports can be filed with the Secretary of State online by following a few simple steps.
- Step 1: Visit Connecticut’s official State website & click on the tab titled All Business Services.
- Step 2: Once you click on the All Business Services tab, you will get a drop-down menu of all the Business filing options. Click on the File Annual Report option from the drop-down list.
- Step 3: Upon clicking on the File Annual Report Menu, you will see the following page. Click on the File Annual Report link to proceed with the report filing.
- Step 4: When you click on the “File Annual Report” link, you will be directed to the Login page of the website, which is intended for filing. To file the Connecticut LLC annual report, you must log in to the existing account or create a new account on the state’s site.
- Step 5: Once you have successfully logged into your account on Connecticut’s Official State Website, click on the File Annual Reports Link & submit the relevant information with the filing fee of $80.
Connecticut LLC Annual Report (Domestic & Foreign)
| State Office: | Connecticut Secretary of State, Business Services Division, 165 Capitol Avenue, Hartford, CT 06106 Link to Website |
| Due Date: | Every year, by March 31. |
| Filing Fee: | The Online filing fee for the Connecticut LLC’s Annual Report is $10. |
| Penalty: | The Connecticut Secretary of State does not levy any fines or penalties for late or non-filing of the Annual report; any late filing or non-filing of the annual report can result in an LLC getting the “not in good standing” status. If the LLC fails to file the annual report altogether, the Secretary of State has the right to dissolve the LLC. |
| Filing Method: | An LLC can file the Annual Report Online only. |
| Forms: | Connecticut Annual Report can only be filed online, so there are no downloadable forms or links to file the report in person or by mail. |
| Important Information: | Once a Domestic or Foreign Connecticut Limited Liability Company submits the Annual Report along with the prescribed fees to the Connecticut Secretary of State, the filing is said to be complete. |
Annual Report Deadline
As mentioned above, filing the Annual report is a mandatory requirement even for an LLC. An LLC operating in Connecticut is required to file its Annual Report with the Connecticut Secretary of State by March 31 each year. The annual reports are filed with the Commercial Recording Division of the Connecticut Secretary of State’s office.
Penalties for Non-filing or late filing
An Annual Report is one of the important documents filed by an LLC. Even though the Connecticut Secretary of State does not levy any fines or penalties for late or non-filing of the Annual report, any late filing or non-filing of the annual report can result in an LLC getting the “not in good standing” status. If the LLC fails to file its annual report, the Secretary of State has the authority to dissolve the LLC.
Tax Structure in Connecticut LLC
For an LLC in Connecticut, 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 Connecticut, 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 Connecticut 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 Connecticut. 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 Connecticut, 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 Connecticut.
Annual Report vs Certificate of Legal Existence in Connecticut
The Certificate of Legal Existence is a legal document that certifies that an LLC in Connecticut 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 Legal Existence in Connecticut 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 Legal Existence in the state of Connecticut.
To obtain the Certificate of Legal Existence, you must log in to the Connecticut Secretary of State. Once you log in, you can go to the “Certificate of Legal Existence” page to obtain the good-standing document. You can also verify it by clicking the “Verify” option. In case of any discrepancy, you can submit a Ticket Request to raise a query.
A filing fee of $50 (or $100 for expedited filing) must be paid to the SOS to obtain the Certificate of Legal Existence. 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.
Request Certificate of Legal Existence:
- Online Application: Log in to the Connecticut Secretary of State’s website.
- Offline application: Not available
- Fees: $50 (or $100 for expedited filing)
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 to file an 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 enables 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 advised that an LLC appoints a Registered Agent to manage all this. Check out the best LLC service that offers all the 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 Connecticut Registered Agent here.
FAQs
Yes, an annual report is essential for every business entity in most states. Some states also require filing 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 aspect of filing an Annual Report is maintaining accurate 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 being represented.
In Conclusion
In conclusion, we can see that the annual report, also known as the Franchise Tax Public Information Report, is significantly easier to file. However, it is mandatory to file the report on time to avoid any penalties. If you are running an LLC in the state of Connecticut, you have to comply with the filing of certain important documents, including the annual report or the Franchise Tax Public Information Report, as it is named in the state of Connecticut.
It is also important to note that once this Public Information Report is filed with the Comptroller of Public Accounts, there is no need for additional filing with the Secretary of State. Additionally, please note that an annual report is not the same as a Certificate of Legal Existence in the state of Connecticut. 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 Connecticut.