Chose An LLC? It’s Time for Annual Reports!

By August 12, 2020February 7th, 2022No Comments

Documents, documents, documents…!

Even though the name itself is appalling and sometimes upsetting, they are exactly what we all need for sustaining a profitable eCommerce business and other businesses. Setting up an ecommerce business, or any new business, has always been boring and unnecessarily complicated; in one word- a headache!

But, if we combine our knowledge together with your ambitions and vision, can you imagine the dizzy heights awaiting us in the future?

Of course, you have heard about Articles of Incorporation, EINs, Articles of Organization and so on; but how would you react if you realized that the number of documents is almost endless? Scary, right? Unfortunately, not only before the business formation, but also after the actual process, you are going to deal with different articles, documents, reports and statements. It’s time to untie the knots, and learn the ropes together with Prestige Auditors, because who needs business if there is not enough knowledge?

Let’s imagine that you have decided to form an LLC, which means that everything concerning your newly-minted business should be taken into account. One of these things is the annual report and paying the filing fee, which is required by the state you are operating in. Perhaps you have heard of an LLC annual report under another name, such as Periodic Report, Biennial Statement, Annual Statement and so on. Now let’s try to dive deeper and understand why we need to file an annual report for our LLCs; is it even necessary?

What Is an Annual Report and What to Include?

To better understand the concept, let’s see how dictionaries like Macmillan define the word report: “a spoken or written account that gives information about a particular subject, situation, or event.” This means that once a year (or depending on your state every two, or every 10 years), you are going to file a report, in which you are going to describe your present situation. This includes the purpose of your business, business address, contact information pertaining to you and your registered agent, members and/or managers of the LLC, business identification numbers and a list of authorized signatories.

Why Is Annual Report Important?

It’s simple, if you don’t file an Annual report, your LLC will be automatically dissolved. But if you are lucky, you can get late fees or penalties, which is not the best thing your business could have. If you want to have a good relationship with your state, you should file this report, which is, by the way, possible both online and by mail!

Fees and Dates for The Annual Report

Every state has different laws concerning this report, which means that you should always confirm with your state before taking any steps. Caution is the parent of safety, so don’t ignore anything that is connected to your business and your LLC.

This is all for today. Hope you enjoyed the ride with Prestige Auditors, your guide to starting and managing a business, which is always ready to help and work with people like you! Don’t ignore the paperwork, because everything we have highly depends on documents! So, don’t be lazy and work on them. No one said that starting an e-commerce or other business will be easy, but we have already simplified everything for your convenience!