What is an Annual Report?
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!