Most states have information reporting requirements for business entities. These reports are commonly referred to as an annual report, or compliance filing. The term “annual” report is a bit of a misnomer, as not all states require entities to file a yearly report. Some states file biennially, or every other year, while in more rare instances a state may have decennial filings, or once every ten years.

An annual report is used to update or confirm the Secretary of State's records. An annual report is not a financial statement but a business entity filing. The data completed on your annual report form should be the most current data on record with your company. If any officer or management changes have been made since the previous filing this is the time to update the state records. The report is required whether you need to make changes to the previous report or not. This report must be filed each year for your business entity to maintain an "active status" with the Secretary of State. Active status is necessary for the business to be lawfully recognized to transact business in the state of registration.

Most states charge a filing fee to complete this report. Filing fees vary greatly between states. Some states only collect a nominal fee, such as $10, while others may charge several hundred dollars or more. It is important to timely file a report both to keep the entity active and to eliminate additional fees. Failure to file the report by the prescribed deadline may result in late filings and fees, revocations or penalties.

Corporate Creations offers annual report filing services. Contact us today to find out more about these services!

Trenton S. Bavaro is Vice President and Corporate Counsel of Corporate Creations. He serves as Authorized House Counsel in Florida and is a Member of the Illinois Bar. Founded in 1993, Corporate Creations has thousands of clients and is the third largest provider of registered agent and compliance services nationwide for Fortune 1000 companies, Global 2000 companies and private companies. Thousands of law firm attorneys, paralegals, accountants, corporate counsel and their business clients worldwide rely on the services of Corporate Creations. Many Am Law 200 law firms and NLJ 250 law firms are clients of Corporate Creations. Corporate Creations provides registered agent services, independent director/manager services, corporate kits, document retrieval services, UCC search and filing services, and corporate document preparation and filing services for the formation, qualification, amendment, merger, dissolution, withdrawal and maintenance of entities nationwide and offshore. For more information on the issues discussed in this article visit http://www.CorporateCreations. com. Copyright © 1993-2016 Corporate Creations.