Are you able to define annual reports and initial reports? Why do entrepreneurs need to file these documents? Do you know why timing is the biggest difference between the two reports?
Incorporating as a corporation or forming an LLC means taking care of business maintenance. Annual reports and initial reports are part of corporate compliance. Filing these documents in a timely manner ensures that your business will stay compliant with state regulations and remain in good standing. Let’s take a closer look at annual reports and initial reports and what filing each one does to benefit a small business.
Let’s begin with a look at initial reports. An initial report is sometimes referred to as a statement of information. Entrepreneurs file this report once they have incorporated as a corporation or LLC formation. This document allows the state to better understand the business and its activities.
An initial report includes basic information about the business, such as:
- Names, and occasionally addresses, of officers, directors, and/or members of the company.
- The address of the business.
- The name of the company’s registered agent and the RA’s street address.
- Brief disclosure of what the business does.
Which States Require Businesses To File Initial Reports?
Keep in mind, however, that not every state requires new corporations and LLCs to file an initial report. The following states do require filing an initial report within 90 days of filing to incorporate as these specific entities.
- LLCs: California, Nevada, and Washington
- Corporations and Professional Corporations (PCs): California, Georgia, Missouri, Nevada, New Mexico, and Washington
- Nonprofits: California, Georgia, Nevada, and New Mexico
Some business owners may choose to overlook filing an initial report because it is not always a requirement. However, every state is different. It is wise to check in with your local Secretary of State to ensure you do not need to file an initial report. What happens if you find out that you need to file an initial report and file too late? Your corporation or LLC could be stuck paying hefty fines or worse, the business could face involuntary dissolution.
It’s all in the name. Annual reports differ from initial reports because entrepreneurs file annual reports yearly with the local Secretary of State.
What goes in an annual report? Annual reports record any changes made within a business throughout the course of the year. Some of these changes include the following:
- Names and addresses of officers, directors, and members of the business.
- The current business address.
- The name and/or address of the business’ registered agent.
- If there have been changes in the activities the business currently conducts.
An annual report, as you might notice, isn’t all that different from an initial report. The key differences are the report’s information (and whether or not there have been significant changes in the business) and its filing deadlines.
Annual Report Due Dates
Many entrepreneurs do not know their state’s specific deadline for filing an annual report. Some may not know if their particular entity is required to file either, for instance.
Luckily, MyCorporation has a helpful cheat sheet handy for annual report filing due dates. Filing deadlines do vary from state to state, which is noted in our chart. Arkansas, for example, has a deadline of January 2nd for odd and even years, while July 1st, for instance, is Oklahoma’s annual report filing due date.
Furthermore, the filing dates are also specific to entity types. Some states, like Alabama for example, require entities like corporations and LLCs to file on an annual basis. Other states, for instance, may enforce a biennial filing. Some states may excuse the entity from filing entirely!
Let MyCorporation Assist In Annual Report Filings
Does your state have a varying filing deadline? Are you are unsure of how frequently your specific entity needs to file an annual report? Contact MyCorporation and our team of skilled professionals for additional assistance. We will automatically check the due dates and requirements for filing your annual report — and even file your annual report for you! In short, this ensures your business meets its formation requirements. Your business will remain in compliance with the state year-round.