An annual report is a yearly filing from an LLC. In most states, filing an annual report is required to update all business actions carried out over the previous year. An annual report includes details regarding a company’s activities and performance figures. The cost of filing an annual report ranges between $0-$500, and the deadline varies depending on the state. Failing to file an annual report can lead to hefty penalty fees, license revocation, or administrative dissolution.
Composition of an Annual Report
An annual report should include a thorough summary of the company’s activities and financial performance over the past year. It serves as a transparent accounting of what an LLC has accomplished and can also act as a marketing piece to attract new support.
Writing and Filing an Annual Report
How to Write an Annual Report
Filing an annual report should include a summary of accomplishments that took place during the prior year. These accomplishments should reflect the mission statement of the organization and how yearly goals were fulfilled.
Filing Requirements and Consequences
Most states require limited liability companies (LLCs) to file annual reports. The primary purpose of an annual report is to provide specific business data and publicly disclose an LLC’s information and conditions over the previous year, allowing states to maintain updated records on all businesses.
Conclusion
This article aims to help you determine whether you need to file an annual report, the steps to file it, and the associated costs.