Updated: Nov 17
What is an Annual Report?
An Annual report is necessary because it keeps the company in good standing status as a registered entity. In other words, you pay for your company’s good name.
Annual reports provide names and addresses of managing members or directors to state governing authorities.
Why you should keep your company in good standing?
Many lenders require proof of good standing business in order to approve financing.
Also, if the business wants to register in other states, many states won’t allow a company to transact the business without good standing status in the state where it was formed.
When to file and make a payment for an Annual Report?
The most common type of company files and makes a payment of annual report once a year. Generally, this date is before the first day of the month when the company was formed. For example, a company was formed on January 15, 2022. So, you need to file an annual report and make a payment before January 1, 2023.
For the convenience of our clients, we send the Annual Reports reminders. Pay more attention to these reminders. Filing late may cost the company late fees. And failing to file at all could lead to the dissolution of the company. This means that the state will no longer recognize your company as a legal entity. The status of the company is filed as “dissolved”.
Can you reopen a dissolved company?
When a company is dissolved, it is not legal to continue the business. But you can reactivate your company. You have only 6 months, to reopen your company after it was dissolved. Because, after these terms, you will pay much more. Let us know if you need help.
State Specific Annual Reports
Each state is different, so you should check the rules within your state. Pro tip: make sure you are working with your accountant or Tax Pro. The level of detail is going to vary from state to state.
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