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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 Tennessee LLC annual report filing in Tennessee.
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 an LLC in Tennessee (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 Tennessee, make sure to pay all the tax dues for the year.
Tennessee 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 Tennessee Annual Report is filed with the Tennessee Secretary of State. Note that the LLC Annual Report is not the same as the Certificate of Existence in Tennessee.
Does the State of Tennessee Require an Annual Report Filing?
It is mandatory for every business entity in Tennessee to file an annual report with the Tennessee Secretary of State. 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 Tennessee LLC Annual Report
The Tennessee LLC Annual Report can be filed online or by mail. An LLC operating in Tennessee must file its Annual Report every year on the first day of the fourth month and post its fiscal year-end with the Tennessee Secretary of State. Therefore, an LLC with a fiscal year ending in December shall submit its report by April 1.
In Tennessee, annual reports can be filed with the Secretary of State online by following a few simple steps.
- Step 1: Visit the Tennessee Secretary of State Site
- Step 2: From the list of processes displayed on the site, click on the File an Annual Report link
- Step 3: Scroll down and click on the “E-file Annual Reports” link under the “What you can do here section.”
- Step 4: Enter the Secretary of State Control Number in the text box & click on begin to start filing the report.
Filing Tennessee LLC Annual Report By Mail
To file the LLC Annual report in Tennessee, you can follow the steps as mentioned below,
- Visit the Tennessee Secretary of State Site
- Click on the “File an Annual Report” link
- Scroll down and click on the “Print & Mail Annual Reports” link, under the What you can do here section
- Enter the Secretary of State Control Number in the text box & click on begin.
- Download the form on your computer
- Fill in the required information & send the printed copies of the forms and relevant documents to the address: Tennessee Secretary of State, Division of Business Services, 312 Rose L. Parks Avenue, Snodgrass Tower, 6th Floor, Nashville, TN 37243
Tennessee LLC Annual Report (Domestic & Foreign)
| State Office: | Tennessee Secretary of State, Division of Business Services, 312 Rose L. Parks Avenue, Snodgrass Tower, 6th Floor, Nashville, TN 37243 Links to Website, Forms |
| Due Date: | An LLC operating in Tennessee has to file the Annual report every year, on the first day of the fourth month, and post its fiscal year-end with the Tennessee Secretary of State. Therefore, an LLC with a fiscal year ending in December shall submit its report by April 1. |
| Filing Fee: | $300 (Additional $20 for registered Agent) |
| Penalty: | Any report filed after the due date may result in 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: | Form |
| Important Information: | Once a Domestic or Foreign Tennessee Limited Liability Company submits the Annual Report along with the prescribed fees to the Tennessee 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 Tennessee has to file the Annual report every year, on the first day of the fourth month, and post its fiscal year-end with the Tennessee Secretary of State. So, an LLC that has a fiscal year ending in December shall submit the report by the 1st of April.
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 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 Tennessee LLC
For an LLC in Tennessee, 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 Tennessee, 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 Tennessee 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 Tennessee. 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 Tennessee, 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 Tennessee.
Annual Report vs Certificate of Existence in Tennessee
The Certificate of Existence is a legal document that certifies that an LLC in Tennessee 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 Existence in Tennessee 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 Existence in the state of Tennessee.
In Tennessee, you must request a Certificate of Existence through the online portal. To obtain the Certificate of Existence, you need to search your business using the Secretary of State Control Number. A filing fee of $20 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 Existence in Tennessee:
- Online application: Search your business using the Secretary of State Control Number
- Offline application: Not available
- Fees: $20
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 serves as a record of the LLC’s activities. 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, and annual report compliance, among other factors, must be taken into account 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 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 Tennessee 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 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 has to file many types of reports, such as Application for Reinstatement, Periodic Report of a limited partnership (usually filed by the exempt nonprofit organization), etc., which are required 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 Existence in Tennessee. 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 Tennessee.