One frequently asked small business question is about annual reports. Most small businesses know they need to file an annual report. However, businesses which do not properly file. This may result in an annual report rejection.
Why would this happen? Let’s look at some of the most common reasons for an annual report rejection.
Incorrect Fee
An annual report is a document recording any changes made in a business over the course of a year. To file annual report, you must complete the appropriate form and pay a filing fee. This form is due each year with an annual report deadline. The deadline varies depending on your state of incorporation. By filing an annual report, you enable your business entity to maintain active status in its state of incorporation.
However, it is possible for the state to reject an annual report if the fee is incorrect. Look closely at the filing fee. Make sure the amount you’re paying is correct for your entity formation type.
No Officer Is Listed
This type of rejection is specific to corporations. A for-profit corporation must have at least one officer listed on their annual report. Otherwise, the state may reject the report.
Similarly, an annual report may be rejected if there isn’t a board of directors listed for a corporation. This is also true of not marking the box indicating the board is the same as the officers listed or not marking the box indicating the corporation does not have directors.
Insufficient Completion
If an annual report is not filled out using ink or typed out, it may be rejected by the state of incorporation.
No Signature
An annual report may be rejected if it does not have a signature. This is also true of annual reports without a date. Make sure to sign and date your annual report. You may sign using an original signature or an electronic signature.
File your annual report today. Contact MyCorporation at mycorporation.com or give us a call at 877-692-6772.