You did it. Your Connecticut LLC is officially up and running, ready to take on challenges, roll in the profits, and change the world.
There’s no doubt that this is an exciting time in your business journey After starting your LLC, it’s easy to get carried away in all the excitement and expectations. After all, as a new business owner, you’ve got a lot on your plate.
But the state does too. They need to keep updated records on thousands of businesses so that they can effectively reach out with any important tax or legal communications down the road. How do they do it? With your cooperation, of course.
Every year, your LLC must submit an Annual Report to the Connecticut Secretary of State to keep your information current. Unsure how to go about it? Never even heard of it? No worries at all. That’s why we’re here. Keep reading for everything you need to know.
What is a Connecticut Annual Report? Why is it Important?
Consider an annual report the state’s yearly checkup on your LLC. It’s similar to a census in that its purpose is to collect the necessary contact and structural information about each Connecticut business.
Each state has its own annual reporting requirements, and some don’t even require them. But in most states, you’re required to submit one per year that includes your LLC name, principal office address, registered agent information, and member/manager names and addresses. Whether you run a domestic or foreign LLC, you should plan on submitting an annual report.
Don’t be intimidated, but it’s not something you want to take lightly. This is how the state updates your LLC’s record with the most recent information. They need to know how to reach you with important information about your business status, upcoming filings, taxes, and service of process.
For example, if you change your registered agent, or your current agent resigns, you’ll need to keep the state informed so they can update their contact information. Miss one of their communications and your LLC in Connecticut might end up falling out of good standing or, even worse, administratively dissolved.
Moreover, keeping your information current will help other businesses and potential customers find you. The Secretary of State’s business name search function allows anyone who uses it to access your business contact information, so they can find or contact you.
How Much Does the Connecticut LLC Annual Report Fee Cost?
If you’re putting together a budget for all your LLC’s costs – like formation costs, name reservation fees, and initial operating expenses – it’s important to include annual filings like this one, just so that there are no surprises.
Costs vary from state to state. Some are free while others can be several hundred dollars. But in Connecticut, you’ll only need to pay $20 whether you run a domestic or foreign LLC.
Due Date and Frequency for an Annual Report in Connecticut
As the name suggests, your Connecticut Annual Report is due once a year and must be filed between January 1 and March 31. Your first Annual Report is due the year after you file a Certificate of Organization to form your business. For example, if you form your LLC on January 21, 2020, your first Annual Report will be due by March 31, 2021.
What Happens if You Don’t File?
You might be thinking, “that sounds like a pain. How bad could it be if I just fly under the radar?” The short answer: don’t try it. Failing to file your Annual Report can yield some serious consequences.
While there isn’t a monetary penalty for missing your Annual Report due date, an outstanding Annual Report will cause your LLC to lose its good standing with the state. Without good standing, your business can’t make certain transactions, acquire financing, expand to other states, and more. Remain out of good standing long enough and the state may administratively dissolve your LLC.
Actually filing the Annual Report is a pretty simple process. After you access the online form, you just need to enter the following information:
- The LLC’s mailing address
- The principal office address
- Your name and title
- Your email address
- Principal name(s) and address(es)
If none of your information has changed from the year before, you won’t have to do much. Even if certain things have changed, all you need to do is enter the appropriate updates. It likely won’t take you more than a few minutes.
The Connecticut Secretary of State requires that all Annual Reports be submitted online. There isn’t even a paper form available on their website. Fortunately, the online filing process is quick and easy.
Simply go to Connecticut’s Annual Reports page and click “File Annual Reports Online.” From here you can either sign in to your account or continue without logging in (continuing without logging in works just fine for Annual Reports). Search for your LLC by business name or ID number. Select your business and follow the instructions to complete your report.
After you’ve entered your information, you’ll arrive at a payment screen, where you can use a credit or debit card to pay the $20 fee and complete the filing. Your Annual Report will be filed immediately.
Does the State Send Reminders?
Reminders are always nice. They help you stay on top of your business requirements and ensure that you won’t fall out of good standing.
As a courtesy, the state will send an email reminder one month before the Annual Report due date. If you don’t have an email address on file, they will mail a postcard instead. That said, it’s still wise to mark it on your calendar, set a reminder on your phone, write it in your planner, or do anything else to remember to file on time.
Can I Hire a Service to Handle it?
You probably have a full plate as it is, and the thought of adding one more responsibility to your to-do list might make you shudder. You’re not alone.
Plenty of other LLC owners have outsourced their reporting duties to LLC services. These companies will take the entire process off your hands, handling your Annual Report each year. If that piques your interest, we recommend ZenBusiness, which is an experienced and trustworthy LLC company.
But their services aren’t restricted to forming an LLC or managing Annual Reports. They can also help you form your business, draft an operating agreement, handle registered agent responsibilities, and much more, all for a reasonably low price.
If thinking about your LLC responsibilities ties your stomach in knots, let ZenBusiness take some of those worries off your plate.
There you have it, everything you need to know about Connecticut’s reporting requirements. Follow this guide to a T and your LLC will be prepared to operate smoothly and in good standing long into the future.
And remember, if at any point it seems overwhelming, you’re not alone. A good LLC service like ZenBusiness (or LegalZoom) can be a valuable resource, taking care of all the little details, so you can focus on growing your business.