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When it comes to the Limited Liability Companies, a lot of work is there that needs to be done once the business entity has formed. For one, you must file your LLC annual report.
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.
Importance of Filing 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 BlueHost), 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.
Get A Professional Agent
Different states have different regulations when it comes to file an LLC Annual Report. Some states require yearly filing, some require filing once in two years. Hence, it is recommended to get a professional help to file an Annual Report. We have a top 3 list for you to choose the best LLC service from.
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Annual Report Filing Fee
Every LLC has to pay a fixed amount of fee for filing the Annual Report. The fee depends on the state regulations. The Annual Report Fee starts from $20 to $100 approximately. Check out the Cost of LLC to know more about the fees and charges.
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.
LLC Annual Report Details
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.
F.A.Qs
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 depend 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.
Who Can Sign an LLC Annual Report
Once you get to the part where you have to sign an LLC annual report , perhaps you wonder who actually has the authority to do that. As far as my experience goes, the signature is usually affixed by the authorized members of the LLC. These people have been captured in the operating agreement or member voted to do so and are representatives of the company.
listed in a Members associated with it.It is important to know who exactly these authorized members are since they are the only ones that can sign the report legally.
Different states may have different processes, but in any case, the first thing to make sure of is that in the annual report your LLC is listed with current and correct information . This usually incorporates the business address , the names of the authorized members, and also changes in management or in control and ownership.
When I prepare to file, I personally make sure I check if my state has requirements related to the documents, just so I can avoid any punishment .
When in doubt on who an authorized member is, a smart thing to do is look at your LLC’s operating agreement documents. These documents have a scope of powers for each member and their obligations and one such power is to authorize signatures for documents like the annual report.
From time to time those members may also decide that a manager should take care of these transactions.
In that instance, ensure the office manager is noted in your files. Also, keep in mind that your annual report needs to be submitted on time. Submitting them late can lead to penalties and even put your LLC in danger.
In Conclusion
Annual Reports are mandatory for the LLCs to renew their business. In some of the states, the renewal of LLC needs a separate form to be filled and submitted. However, most of the time by submitting the Annual Report gets the work done. The fee of filing an Annual Report is different depending on the state.