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Last updated on: February 7th, 2019

What is an Annual Report?

Annual ReportIf you’re a member of a limited liability company, or if you’re in the process of forming an LLC, you’re probably aware of how the formation process works.

However, in our experience it definitely seems like there’s not as much awareness of the ongoing compliance requirements involved with LLC ownership, specifically the annual report process. Which states have annual report requirements, and what do you need to do to comply with these regulations?

In this guide to LLC annual reports, we’ll tell you everything you need to know about the annual report process. By the time you’re done reading, we think you’ll be confident in your understanding of this important compliance requirement.

 

What Is an Annual Report?

Most states require limited liability companies to file annual reports because this helps the state government keep track of any important changes to your company’s basic information. If there are any updates regarding your LLC’s business name, physical address, the identity or location of your registered agent, or other details depending on your state’s requirements, the annual report is where you inform your state of these changes.

Some states don’t need you to file a report every year ― some states only require them every other year, and there’s one state that only makes you file one report per decade. No matter how often it’s required, you will have to pay a fee to file your report in the vast majority of states. In some states, this fee can be as little as $10, but there are other states that charge several hundred dollars, so it’s good to have a grasp on what your state charges ahead of time to avoid sticker shock.

The reason most states need you to file an annual report is that if the state has out-of-date contact information for your business or your registered agent, they might not be able to carry out service of process if your business is sued. In that situation, it’s possible that a lawsuit could go through the court system without you ever appearing to defend yourself, which is obviously a situation that you want to avoid at all costs!

 

What Happens If I Don’t File an Annual Report?

If you fail to comply with your state’s annual report requirements in a timely fashion, you could face some harsh penalties depending on your state.

You can expect to lose your company’s good standing with the state, and many states also charge late fees for delinquent reports. Some states will also dissolve your limited liability company if you don’t file your annual report by a certain date, which means your business will no longer be a legal entity, and you will lose your personal asset protection.

In these situations, it is possible for your company to apply to be reinstated to legal LLC entity status, but an administrative dissolution can still lead to contracts being voided, business relationships being strained, and the corporate veil being pierced. In other words, try your best to file your reports on time!

 

Which States Do Not Require Annual Reports?

There are eight states that do not require limited liability companies to file annual reports:

Arizona, Arkansas, Delaware, Missouri, New Mexico, Ohio, South Carolina, and Texas.

As we mentioned earlier, there are also several states that don’t require reports on an annual basis. If you’re operating a business in Alaska, California, Indiana, Iowa, Nebraska, or New York, you’re only required to file a biennial report. In Pennsylvania, you’ll only have to file a report once per decade.

 

Which States Require Annual Reports?

Each state can set their own rules and regulations regarding limited liability company annual reports, so you should check with your Secretary of State to see what the exact process looks like in your state. Below, we’ve listed the fees for each state so that you know what to expect.

  • Alabama:

– Alabama Business Privilege Tax Return and Annual Report: 0.025%-0.175% rate, depending on the net worth of your LLC ($100 minimum)

  • Alaska:

– Biennial report: $100

  • Arizona:

– Annual report not required

  • Arkansas:

– Annual report not required

  • California:

– Biennial statement of information: $20

  • Colorado:

– Annual report: $10

  • Connecticut:

– Annual report: $20

  • Delaware:

– Annual report not required

  • Florida:

– Annual report: $138.75

  • Georgia:

– Annual report: $50

  • Hawaii:

– Annual report: $12.50

  • Idaho:

– No fee for annual report

  • Illinois:

– Annual report: $75

  • Indiana:

– Biennial report: $50

  • Iowa:

– Biennial report: $60

  • Kansas:

– Annual report: $50

  • Kentucky:

– Annual report: $15

  • Louisiana:

– Annual report: $30

  • Maine:

– Annual report: $85

  • Maryland:

Annual report: $300

  • Massachusetts:

Annual report: $500

  • Michigan:

Annual report: $20

  • Minnesota:

No fee

  • Mississippi:

– No fee

  • Missouri:

Annual report not required

  • Montana:

– Annual report: $20

  • Nebraska:

– Biennial report: $10

  • Nevada:

– Annual report: $150

  • New Hampshire:

– Annual report: $100

  • New Jersey:

– Annual report: $50

  • New Mexico:

– Annual report not required

  • New York:

Biennial statement: $9

  • North Carolina:

– Annual report: $200

  • North Dakota:

– Annual report: $50

  • Ohio:

– Annual report not required

  • Oklahoma:

Annual report: $25

  • Oregon:

– Annual renewal: $100

  • Pennsylvania:

Decennial report: $70

  • Rhode Island:

– Annual report: $50

  • South Carolina:

Annual report not required

  • South Dakota:

– Annual report: $50

  • Tennessee:

Annual report: $50 per LLC member per year ($300 minimum)

  • Texas:

Annual report not required

  • Utah:

– Annual report: $20

  • Vermont:

Annual report: $35

  • Virginia:

– Annual report: $50

  • Washington:

– Annual report: $60

  • West Virginia:

Annual report: $25

  • Wisconsin:

– Annual report: $25

  • Wyoming:

Annual report: $50 or 0.02% of the value of LLC assets (whichever is greater)

 

Can I Hire Someone to File My Annual Reports?

The process for filling out and filing an annual report is generally pretty painless, but many entrepreneurs prefer to hire an online business service provider to handle them instead. There are many companies offering this service, from full-service offerings that track your due dates and file your reports, to providers that simply fill out and file them at your request.

In general, annual report service is quite reasonably priced, so even though it’s not much of a hassle to do it yourself, it’s a rather minor expense if you’d rather hire someone. If this is a route you’re interested in, take a look at some of our favorite LLC annual report service providers:

  • LegalZoom$55: LegalZoom’s annual report service has an appealing price point, and with their combination of elite brand power and very high customer volume, they put together a strong offering. Throw in their extended customer support hours, and you’ve got a worthy contender to take care of your annual report.
  • MyCorporation$98: While their prices are certainly higher, there’s good reason for it, as MyCorporation offers a fully managed annual report service. This means you don’t even have to keep track of your own due dates, as they’ll take care of the entire process for you.
  • Harbor CompliancePrice Varies: Harbor Compliance takes the same approach as MyCorporation with fully managed service, but they add their next-level compliance calendar, as well as one-on-one personalized customer support.

 

Conclusion

While there are some states that don’t require limited liability companies to file annual reports, the vast majority of them do have this requirement. Filing an annual report might seem like a formality on the surface, but in reality it’s a crucial part of the ongoing LLC maintenance process, and it helps the state stay up-to-date regarding some important details of your business.

It’s not too much hassle to go with the DIY route for annual reports, but it’s also rather inexpensive to hire a reputable online business service provider to take care of them for you. No matter which option you choose, we wish you the best of luck in all your business endeavors!