Once your business is formed, paperwork with the state is not over. As a part of the ongoing requirements for your company, your state will require you to file an annual report and pay a filling fee in order to keep your business entity in compliance and in good standing. Fees and due dates vary by the state where your company was incorporated.

The annual report is named differently by each state (annual report, annual statement, statement of information, periodic report, biennial statement, decennial report, and many more) and not all annual reports are annual. The frequency will depend on your state filling requirements and I some cases may be required to file bi-annually, every year, some every two years, and some may be lucky enough to only have to file every ten years. It just depends on your state and their requirements.

The purpose of the annual report is to keep your business entity in compliance, in good standing and to maintain an “active status” with the Department of State. It is required, whether or not a change to the business information is needed or the company is operational. In simple layman’s term, a company filling needs to be updated and renew each year to keep it active and legally formed. The data displayed on the entity’s annual report is the most current data on file with the Division of Corporations.

Additionally, it keeps the state updated with the company information, such as mailing address, business address, members, officers and directors, registered agent. If you fail to file your annual report, the state will automatically dissolve your company.

 it’s important that you file your annual report on time. If you don’t file your annual report on time and by the prescribed due date, the state will charge you a late fee. If you continue to ignore this requirement and after a certain due date, the state will automatically dissolve your business entity with the corresponding legal consequences to keep conducting business unregistered. A reinstatement penalty will be assessed after the filling due date to bring your company in compliance. This reinstatement fee in most cases can triple the annual filling fee.

Leave the paperwork to us so you can focus on what’s matter: growing your business.

With our reliable CRM application, Fast Inc USA will provide you with the peace of mind knowing that your annual filling will be made on time, every time.