Small business owners and entrepreneurs must balance the grind of their work each day with the compliance requirements to run their businesses effectively and legally. One compliance attribute which our clients and others deal with each year is the filing of their annual report. In this article we tackle what an annual report is and provide resources for small business owners and entrepreneurs to complete their reports.
You can also scroll down to see your state's annual filing requirement(s)
Corporate Filings are Important
Are you a small business owner? Did you file your annual report for 2021? Failing to file your business or corporation annual compliance documents can lead to a business being suspended or in some cases forfeited without small business owners knowing it.
In 2021, BRP Onesta surveyed over 1,000 (1,292) small business owners. 35.1% of the small business owners who responded said that they had no idea of whether they needed to file corporate filings for the year. We also audited 2,400 of our clients and nearly 20% of our clients had deficiencies in their corporate filings.
What is an Annual Report?
An annual report is a document filed by non-profit and for-profit corporations, limited liability companies, and limited liability partnerships must file with their state which the business is filed in, usually each year. The content of the annual report usually outlines the status of an organization.
Annual Reports Differ from State to State
State governments very in how they require small businesses to file annual reports. Some state Secretary of State offices (or similar agencies) require Annual Reports to be files on different timelines (like biennial or decennial).
Our team is regularly asked about when and what to do from clients regarding these filings, so we decided to put together a chart for our clients and others to review.
Critical Things Associated with Annual Reports
There are some critical things that are associated with annual filings, so we have compiled a list of things to remember when you are considering corporate filings:
While nearly every state requires an annual filing of some sort, not every state requires the same information. For instance, Maryland requires different reporting (taxes and operation) and New Jersey requires less information.
States that require corporate filings usually require a payment to keep the business in good standing.