Knowing what is annual report filing is helpful if you have a business. These are also known as statements of information and are sent to government agencies for the purpose of registration. They assist with keeping all changes current and recording any corporate activity for the past year.

Many states have a mandatory requirement that they're filed each year on the date the company was incorporated or shortly after. There might be some differences in semantics and the definition for the yearly report, but most states have requirements for limited liability companies, corporations, and other types of business entities to continue registration.

What Are the Types of Annual Reports?

Bigger companies must file both state yearly reports and file with the Securities and Exchange Commission. The reports tend to be complex and lengthy and have the required information from the shareholders. The most popular kind of yearly company report is the one ordered by the state. Since every state differs in their rules, it's important to check your individual state. Annual reports tend to be required to file once a year. They'll often come in paper form in the mail so the business can fill it out and send it back.

Yearly reports can include any number of questions and requirements, including the following:

  • Paid in capital
  • Franchise tax calculation
  • Director and officer information
  • Approved shares
  • Additional capital investments

There are often fees required for filing this report. Working with an accountant is helpful so you can correctly calculate the various figures that are in the form. How much detail is required depends on the state's requirements.

How Do I File an Annual Report?

Filing the annual report tends to be very easy. In certain states, the companies can file their report online as well as pay any related fees online. A state organization, such as the Department of Finance, Secretary of State, or the Department of Corporations, sends the notice in many cases. This gets mailed to the registered agent of the company.

What Happens if I Don't File My Annual Report?

It's necessary to continue to file your yearly report so the company remains in good standing and registered. If you file late, it will cost the company late fees. If you don't file at all, the company may go through administrative dissolution. This means the state doesn't recognize the company as a legal entity anymore.

The company can often choose to apply for reinstatement, but the dissolution puts the business's relationships and the company's contracts at risk. This may also pierce the corporate veil, which will put the owners at personal liability. This is why it's very important to pay attention to deadlines and always turn in your annual report well ahead of time. If you have any questions about this, it's best to hire a qualified accountant to make sure you're doing it correctly.

What Companies Are Subject to Mandatory Security Filings?

For most companies, the only yearly report that's required to be filed is the state annual report. However, if they're listed on the stock exchange, publicly traded, have 500 or more shareholders, or $10 million or more in assets, they need to file Form 10-K and send it to the Federal Securities and Exchange Commission. Filing taxes includes a comprehensive financial report and needs to include the financial statements of the company.

This form is designed for big corporations, not businesses that are small. If you think you may need to file this form for your company, talk with a securities attorney first to confirm.

What Are the Details to Take Note of on Due Dates?

Entities that operate on a fiscal year besides a calendar year can have a due date that's different. The state lets particular business entities pick their own due dates. Unless it's indicated otherwise, all reports are due on a yearly basis. Due dates that say "anniversary" are in reference to the anniversary date of when the entity formed. Those in a Limited Liability Partnership can owe a registration renewal, annual report, or both. States that have renewal requirements are listed as "renewal."

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