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.
Those business owners who fail to pay their fees can have penalties added.
States process filings at different rates of speed. Some are online only, some mail in only.
Small business owners jeopardize their Certificate in Good Standing Status if they fail to file their annual report. This can have a detrimental effect in areas such as funding, grants, or acquiring new licenses.
What Are Your State’s Requirements for Filing?
Considering each state has different requirements, we try to keep a running list on our website. For our list, we break down both LLC and Corporation requirements.
Ensure Your Corporate Filings Are Done on Time and Accurately
If you are a small business owner or entrepreneur, we highly suggest using our company to prepare your corporate filings for you. It is inexpensive and will allow you to focus on your typical everyday work.
At BRP Onesta, we have a team of experts who prepare and file small business filings such as annual reports in all 50 States.
Dr. Thomas Tramaglini is the Managing Director for BRP Onesta, a company that supports small businesses. By offering a host of important and affordable services that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow infinitely. Although located in on the famous Jersey shore, BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.