What is an “annual report”?

Annual Report Filing Service

Every business entity filed on a state level with the Secretaries of State of each state is required to file an “annual report” in order to remain active and in good standing.  Failure to file such an annual report may result in penalties or revocation of the corporate or business charter. While the time of filing of a company’s annual report may vary with the state in which it is filed, it is a requirement to remain in business.

What is an “annual report”?  An annual report (also called a “statement of information” or a “list of officers and directors”, depending upon the state) is generally a form containing information about a company, its activities, officers, directors or managers and (in some cases) shareholders or members and its financial status over the previous year.  It is often combined with a franchise tax report (for corporations) or other taxation reports. It is also a public document, generally filed with the Secretary of State, available for public inspection.

Not all states require that the report be filed annually.  Some states require a filing every two years (biennial report).  Others require filing annually or biennially depending upon the type of entity.  New York requires biennial reports filed for corporations and limited liability companies (LLCs), but annual reports for nonprofit corporations.  Similarly, California requires Statements of Information filed annually for corporations but biennially for LLCs and nonprofit corporations. Timing of filing varies depending upon the state, so it is important to check the annual report requirements for the state(s) in which you are filed.

Because it is a requirement and failure to file may result in monetary penalties or revocation, a company that is required to file an annual report must be vigilant in ensuring that it is filed in a timely manner.  If a company does not adhere to these formalities, its principals may also be subject to legal repercussions for breach of fiduciary responsibility. Therefore, many companies are encouraged to set automated reminders to prompt them to remit these reports on time.  

Nowadays, however, it goes even further than that. Many companies who do not wish to spend their time and resources completing and filing these reports are either procuring computer software to prepare them or engaging third parties to take care of completing and filing the reports altogether.  Companies such as Blumberg, with its new comprehensive online portal service, JULIUS, can offer automated reminders as well as electronic preparation and submission of the annual reports to the appropriate administrative agencies, saving time and hassle of trying to keep track of these deadlines.  This is especially invaluable where a party owns multiple entities or has a single entity in multiple jurisdictions. A system like JULIUS can provide its customers with a great deal of information about their company’s governance as well as its administrative history and, if applicable, any litigation process served upon it.  It makes running a company a bit more manageable.

Annual, Biennial and Franchise Tax Report Filing Service

We can prepare and file your business’s annual reports. When using Blumberg you save time and remove uncertainties about the details, deadlines and fees, that are required to protect your company’s good standing.

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