One of the requirements for an LLC to stay in business is the filing of LLC annual reports. This isn’t the same report that details a company’s assets, liabilities, equity, income, and expenses. It is more of an update on your business information, so your local government will know what to do with your LLC at any given time. So let’s take a look at the Annual Report – What is is?
The Process of Filing
Log on to the Tennessee Secretary of State website, enter your state control number, and file your reports there for $20. (If you don’t know your state control number, you can look it up via the site’s business search function.) You can also contact their office and ask for the forms to be mailed to you. The deadline for filing of the LLC annual report is the first day of the fourth month following your company’s fiscal year. For example, if your fiscal year ends on December 31, your deadline is April 1.
What to expect when filing
As mentioned earlier, an LLC annual report keeps your local government updated on your company’s operations. If you change any information that’s also included in your articles of organization, you must file an amendment to the articles as well. Changes you can make include any new information on your business name, business address, management structure, and registered agent. Make sure you have the necessary documents to prove that you made these changes. Read more on designing an annual report here.
Consequences of Not Filing
If you miss the deadline for filing your LLC’s annual report, you will receive a delinquency notice.
You will be given 60 days within receipt of the notice to file your report. Should you fail to do so within that period, the government can revoke your LLC’s license to operate, or dissolve your company altogether.
Who Can File
Any member of the LLC can file an annual report. However, it’s better if only one or two members are designated to complete this task every year for uniformity.
Aside from the $20 filing fee, there are also additional costs for changing your registered agent. Fees also vary according to the type of LLC (e.g. domestic or foreign, profit or nonprofit). If you are filing the report via snail mail, you can factor in the mailing expenses too.
Filing annual reports need not be an intimidating experience. Just keep in mind the abovementioned steps, and the process will go as smoothly as possible for you. In case you’re unsure of anything, you can ask your registered agent for more information. Here you can read more about designing a brochure.