If you own an entity, specifically a corporation or a limited liability company, do you need to be concerned with filing annual reports in the state of the entity’s formation? And what are annual reports, anyway?
Annual reports are brief documents (usually 1-4 pages) that provide annual, or in some states, biennial, updates about the entity to the state government’s filing department wherein corporations, limited liability companies (and partnerships and business trusts), file their formation and maintenance documents. Yes, annual reports are required. We will deal with only corporations and limited liability companies here.
One of the most important documents, after filing initial documents in the state of formation, is an annual report. Each state has its own requirements for annual (or biennial) reports, but every state requires the filing for a corporation to remain in good standing. Some states will administratively dissolve an entity if the annual (or biennial) report filings are not timely filed.
If you have qualified your entity to do business in a state or states other than the state of formation (the domestic entity), you have responsibility to file annual reports in the foreign entity(ies).
As an owner of an entity, how can you keep up with all these dates involved in the operation and maintenance of your corporation or limited liability company? Until a few years ago, a reminder service was offered by the State of Arizona for Arizona corporations. Not so anymore. Some professional statutory agents will offer this service as part of their annual fee which, in some cases, is more than $300 per year per entity. Some states do not offer this “reminder service” at all.
Our firm has established a database containing our corporate and limited liability company clients, along with the due dates of annual (or biennial) reports. We notify our corporate (and, if necessary, limited liability company clients) a month in advance of the annual report due dates. Almost all states in the United States require annual report filings for limited liability companies with a fee. Arizona has no such requirement. All states, to our knowledge, require corporations to file annual reports.
However you track due dates for filings for your entity’s business, it is important you keep in mind annual reports, trade name renewal dates (another important subject), whether on your own or through a statutory agent or some other means. Be sure to maintain all required filing dates to uphold the integrity of your entity and not get into an administrative dissolution situation.
We are happy to answer your questions about corporate or limited liability company filings.
Darlene Lundy, Certified Paralegal
Disclaimer: This blog is for information purposes only. Legal advice is provided only through a formal, written attorney/client agreement.