Key Takeaways

  • Most states require businesses to file an annual or biennial report to remain in good standing.
  • A small business annual report typically includes basic company information and financial summaries.
  • Due dates and filing frequencies vary by state and business entity type.
  • Missing a filing deadline may result in penalties or administrative dissolution.
  • Some states require an initial report soon after formation in addition to the annual report.
  • Reports can usually be filed online through a state’s Secretary of State or corporate filing portal.
  • Small businesses should use annual reports to communicate performance with stakeholders.

A small business annual report is used to inform the state where your business operates of your company's assets and revenue in a given year. In many states, failing to file this report means you will no longer be able to do business.

What Are Annual Reports?

Annual reports are documents that most business will need to file on a yearly basis so that the state where the business is formed has up to date information about the company. An annual report is also known as a Statement of Information.

For instance, your annual report could include:

  1. Information about your registered agent.
  2. Information about your board of directors or corporate officers.
  3. Your business's address.

Typically, you will need to pay a filing fee when submitting your annual report. Alabama and Ohio are the only states that do not require an annual report.

Why Do States Require Small Business Annual Reports?

Small business annual reports help state governments maintain up-to-date records on registered entities. These reports serve several key purposes:

  • Compliance Tracking: Verifies that businesses remain legally active and in good standing.
  • Public Record Maintenance: Updates essential information like business address, registered agent, and officers.
  • Revenue Collection: States collect filing fees as part of annual compliance requirements.
  • Transparency: Provides accountability for entities doing business within the state.

While these reports aren't typically used for tax reporting, they are critical for regulatory oversight. Not filing can lead to serious consequences such as late fees, loss of business rights, or administrative dissolution.

Annual Report Due Date

On the business filing website maintained by your state, you should be able to find a wealth of information about your annual report, including when this document is due. Many states require that you file this report every single year. Other states have periodic filing requirements. For example, you may need to file your report every two years (biennial) or even every 10 years.

The due date of your annual report will depend on the state where you formed your business. You might, for instance, need to file your annual report on the anniversary of the date your business was formed or incorporated. In other states, you'll need to file your annual report along with your annual tax return. Filing at the calendar year's end may be the due date in your state. Consult your Secretary of State to determine when your report is due.

How to File a Small Business Annual Report

Filing a small business annual report is typically a straightforward online process. Here are the common steps:

  1. Locate your state’s filing portal – Usually hosted by the Secretary of State or Department of Corporations.
  2. Log in with your business ID – Most states assign a unique number to your entity at registration.
  3. Review and update business information – This includes your business name, principal office address, registered agent, and names of officers or members.
  4. Pay the filing fee – Fees vary by state and business structure. For example, Florida charges $150 for LLCs and $138.75 for corporations.
  5. Submit and save confirmation – After submission, download or print a receipt and confirmation page.

Some states also allow batch filings or email reminders if you sign up through their portal.

Filing an Initial Report

If you've formed a corporation or limited liability company, it's possible that you will need to submit an initial report. This report gets filed soon after your company is formed, and it will include the same information contained in your annual report.

If you form an LLC or corporation in one of the following states, you must file an initial report:

  1. California
  2. Connecticut
  3. Georgia
  4. Louisiana
  5. Missouri
  6. Nevada
  7. New Mexico
  8. Washington

Common Filing Mistakes to Avoid

Avoiding errors when filing your small business annual report helps ensure uninterrupted operations. Common mistakes include:

  • Missing the deadline – This can result in late fees or administrative dissolution.
  • Incorrect business address or registered agent – Causes delivery issues for official correspondence.
  • Failing to pay the correct filing fee – Submissions may be rejected if underpaid.
  • Using outdated officer information – Keep records current to reflect organizational changes.
  • Assuming your business is exempt – Even inactive entities often need to file or formally dissolve.

What to Include in Your Annual Report?

Updating information about your business is the purpose for states requiring an annual report to be filed. In addition to these state reports, corporations must draft a report for delivery to current and prospective investors so that they can determine the financial performance of the company.

Small businesses can benefit from drafting a small business annual report, even if they are not required to submit the report to investors. The yearly report for a corporation generally includes a variety of information about the business's finances:

  1. A Chief Executive Officer (CEO) report.
  2. A cash flow statement comparing the current year's finances to those of the previous year.
  3. A company balance sheet.
  4. A report from an auditor.

Typically, you would begin a yearly financial report with some information about the business and a few highlights of the company's yearly performance. After this initial information, executives of the company will include a statement that informs shareholders of some of the most important events of the previous year and the company's plans for the next year.

If you're developing a report for a small business, you could use this document to motivate your employees. In most yearly reports, there will be three financial statements that are related but provide a unique view of the company's economic standing.

The balance sheet is the first of these financial reports. Your balance sheet is used to determine your company's financial state by comparing several issues, including your assets, equity, and liabilities. Basically, a balance sheet is a brief overview of the current financial condition of your business.

The second financial report is the financial statement, which compares how much money your company earned in the previous year to its expenditures.

Lastly, your report will include a cash flow statement. This statement describes the liquid funds that your company earned and spent in the previous years. Your annual report can cover numerous other topics. For instance, you would usually need to include a report from an auditor that verifies the financial information included in your annual report. You might also want to describe the accounting policies of your company.

How a Small Business Annual Report Can Add Value

Though often viewed as a compliance task, a small business annual report can serve broader purposes:

  • Strategic Reflection: Offers an opportunity to reflect on the year’s accomplishments and challenges.
  • Team Motivation: A well-crafted report can acknowledge employee achievements and boost morale.
  • Investor & Lender Communication: Even for private small businesses, an annual summary builds trust and supports funding efforts.
  • Benchmarking Tool: Financial statements help track growth trends and inform goal setting.

Small businesses can create simplified annual reports internally or work with accountants and legal advisors for accuracy and insight.

Frequently Asked Questions

  1. Do all states require a small business annual report?
    No. Requirements vary by state. Some, like Ohio and Alabama, do not require annual reports for most business types.
  2. Is there a penalty for missing the filing deadline?
    Yes. Penalties can include late fees, loss of good standing, or administrative dissolution of the business.
  3. Can I file my annual report online?
    Yes. Most states offer an online filing portal, typically through the Secretary of State’s website.
  4. What is the difference between an annual report and a tax return?
    An annual report is a state compliance document detailing business status and contact info. A tax return is filed with the IRS to report income and expenses.
  5. How much does it cost to file an annual report?
    Costs vary by state and entity type. For example, in Florida, an LLC pays $150 while a corporation pays $138.75.

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