Annual Filing for an LLC: Everything You Need to Know
Depending on the state, LLC filing fee is filed when the company is first formed and annual filing reports and filing fees are submitted thereafter.3 min read
2. How Do LLCs File Annual Reports?
3. Do LLCs Have to Pay Yearly Fees?
4. What Happens if an LLC Doesn't File When It Should?
Requirements for annual filing for LLC will depend on your state. You must file an LLC filing fee when your company is first formed. You might have to submit annual filing reports and filing fees thereafter.
What Is an LLC Annual Report?
An annual LLC report (also known as an Annual Informational Report) is a mandatory document that a limited liability company provides to the state. This document informs the state about the company's management situation, its activity, and other basic facts.
The following is the type of information you will have to provide:
- The name of your business
- Your business's federal identification number
- Where you LLC is headquartered
- The type of business you're involved in
- The names and addresses of the LLC's owners
- Who to send legal documents to (pertaining to regulations and court cases)
How Do LLCs File Annual Reports?
You will have to follow your state's rules when filing an LLC report, but regulations are reviewed on a yearly basis. Check with your secretary of state or appropriate regulatory agency to obtain up-to-date filing information. The rules in your state will guide the following:
- Whether you are required to file an annual report: Most states require an annual report, but states like Delaware, Ohio, and South Carolina do not.
- How often you must file with your state: States like California, Iowa, and Indiana require LLCs to file biennial reports. In Pennsylvania, LLCs need to file reports every ten years.
When you must turn in your report: Forms must be turned in on specified dates, but deadlines differ in each state:
- Some states set the same deadline for all LLCs.
- In select states, LLCs may have to file their reports in a certain range of months.
- In other states, each LLC may have to file on one of the following days, based on when the LLC was formed:
- The exact anniversary date of their registration
- The first day of the LLC's anniversary month
- The last day of the LLC's anniversary month
- Whether you will need to fill out other documents: Depending on your state and the type of the LLC you run, you might have to file a specific form. You also must submit documents when you make certain changes to your LLC, such as changing the company's name or dissolving the company.
It's generally easy to fill out these forms because most states offer online filing services. If your state doesn't have an online filing option, you will have to fill out and return physical forms to your secretary of state.
Do LLCs Have to Pay Yearly Fees?
While researching your state's rules regarding LLC annual reports, you should find out about the types of fees you must pay. In most states, companies must also submit an annual fee along with their reports. In states like Texas, which does not collect income taxes of any kind, LLCs might have to pay franchise taxes when filing annual tax reports.
- Franchise tax reports must contain information that includes the name of the LLC, the type of business it engages in, and details about the company's finances. The report serves a dual function because it allows an LLC to figure out how much it owes the state in franchise taxes.
- If you can file your company's report electronically, you can also pay the accompanying fee at the same time with a credit card. Physical forms can be sent along with a check or money order.
- Make sure you pay the appropriate fee with your report. In the United States, the average annual fee for LLCs is $101, but you may pay nothing, as little as $10, or hundreds of dollars.
What Happens if an LLC Doesn't File When It Should?
LLCs must file yearly reports to state governments, so they can remain in good standing. The failure to file LLC reports and/or taxes regularly and on time can have dire consequences for you and your company, which include:
- The forfeiture of the company's LLC status and protections
- A forfeiture of the company's registration
- A forced shutdown of the company
- A loss of loans and lines of credit
- Late fees
- Personal consequences, like the loss of your operating license
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