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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 Massachusetts LLC annual report filing in Massachusetts.
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 Massachusetts 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 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 Massachusetts, make sure to pay all the tax dues for the year.
Massachusetts 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 state officials ensure that all companies pay taxes. The Massachusetts Annual Report is filed with the Massachusetts Secretary of the Commonwealth. Note that the LLC Annual Report is not the same as the Certificate of Good Standing in Massachusetts.
Does the State of Massachusetts Require an Annual Report Filing?
In Massachusetts, every business entity has to file an annual report with the Secretary of the Commonwealth. 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 Massachusetts LLC Annual Report
The Massachusetts LLC Annual Report can be filed online or by mail. A Massachusetts LLC has to file the Annual report with the Massachusetts Secretary of the Commonwealth on the company’s anniversary date. In Massachusetts, annual reports can be filed with the Secretary of State online by following a few simple steps.
- Step 1: Visit the Massachusetts Secretary of the Commonwealth website.
- Step 2: On the very next page, you will find three ways in which you can file the Annual Report. Click on the “File Online” link.
- Step 3: Upon clicking on the File online link, you will see the following window. Enter your Customer ID number & PIN in the boxes. Click Submit & start filing your Annual Report.
- Step 4: As you click on ‘Submit,’ you will be redirected to the next page of filing your Annual Report. Follow the instructions displayed on the screen to complete the online report filing.
Filing Massachusetts LLC Annual Report By Mail
To file the LLC Annual report in Massachusetts, you can follow the steps as mentioned below:
- Visit Massachusetts’s Secretary of the Commonwealth website.
- Click on the “File By Mail or Walk-in” link
- Select LLC as the business entity
- Click on the Limited Liability Company Annual Report (PDF)
- Download the form.
- Fill the form with correct information.
- Send the printed copies of the forms and relevant documents to the address: Massachusetts Secretary of the Commonwealth, P.O. Box 1150, Frankfort, KY 40602-1150
Massachusetts LLC Annual Report (Domestic & Foreign)
| State Office: | Massachusetts Secretary of the Commonwealth, P.O. Box 1150, Frankfort, KY 40602-1150 Links to Website, Form |
| Due Date: | Annual reports are filed on the Anniversary date every year. |
| Filing Fee: | $520 for Online filing. $500 for Filing by mail. |
| Penalty: | If an Annual report is filed after the due date, then the LLC will become delinquent. Failure to file the report may lead to the dissolution of the LLC. |
| Filing Method: | An LLC can file the Annual Report Online or by mail. |
| Forms: | Forms |
| Important Information: | Once a Domestic or Foreign Massachusetts Limited Liability Company submits the Annual Report along with the prescribed fees to the Massachusetts Secretary of the Commonwealth, the filing is said to be complete. |
Annual Report Deadline
As referred earlier, filing the Annual report is a mandatory requirement even for an LLC. A Massachusetts LLC has to file the Annual report with the Massachusetts Secretary of the Commonwealth on the company’s anniversary date.
Penalties for Non-filing or late filing
An Annual Report is one of the important documents filed by an LLC. If an Annual report is filed after the due date, then the LLC will become delinquent. Further failure to file the report may lead to the dissolution of the LLC.
Tax Structure in Massachusetts LLC
For an LLC in Massachusetts, 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 Massachusetts, 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 Massachusetts 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 Massachusetts. 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 Massachusetts, 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 Massachusetts.
Annual Report vs Certificate of Good Standing in Massachusetts
The Certificate of Good Standing is a legal document that certifies that an LLC in Massachusetts 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 Massachusetts 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 Massachusetts.
In Massachusetts, to obtain necessary documents for an LLC, one must register in the MassTaxConnect portal. On the homepage, you will find the option of Request a Certificate of Good Standing. Click on it and provide the necessary information to obtain the Certificate of Good Standing.
A filing fee of $25 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.
Request Certificate of Good Standing:
- Online application: Sign up for the MassTaxConnect portal
- Offline application: Request a Certificate of Good Standing
- Fees: $25
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, the mode of filing, the proper addresses, exemptions, legality, annual report compliance, etc., have to be taken care of while paying the taxes or filing any reports with the 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 about important dates of filing or payment of taxes.
- 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 Massachusetts 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 the signatories, SSN 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. Make sure that you document every other transaction well.
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 Massachusetts. 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 Massachusetts.