There’s a ton of paperwork that goes into maintaining your small business — and failure to file something important can result in penalties. One such piece of documentation that businesses should file is called an annual report. While it’s pretty simple in nature, here’s a breakdown of what you need to know about it.
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What’s an annual report?
An annual report for large companies is a business’ documentation of its financial performance in the past year. But an annual report for smaller businesses — like if your small business is registered as an LLC — is a bit different. For an LLC, the annual report just provides your state with basic updates and information about your business.
As the name suggests, annual reports are due every year in the state in which you’re operating your business, though some states may require you to file every two years. The annual report may go by different names in some states. For instance, it may also be called a biennial report, an annual registration or a business entity report.
The type of information you might see on an annual report includes your business address, contact information and registered agent information.
So, why are you required to file an annual report? The report confirms to the state that your business is still active. It also confirms where the state should be sending official communications about your business, which is especially important if you are not acting as your own registered agent.
Who needs to file an annual report?
LLCs, corporations, limited partnerships and limited liability partnerships must file annual reports. Sole proprietorships and general partnerships typically aren’t required to file annual reports, but always double-check your state’s compliance guidelines beforehand.
How do you file an annual report?
You may not always receive official reminders from your state about your annual report filing requirement or deadline, so you have to be extra cognizant to make sure you get this done.
If you have a registered agent other than yourself, though, they’ll communicate with you when it’s time to file your annual report because that’s the job of the registered agent — to provide you with notices about compliance updates and documentation you need to file in order to keep your business in good standing.
You can actually get a registered agent service through business formation companies like LegalZoom and Northwest Registered Agent.
Registered agent services are sometimes free for the first year when you form a new business entity. After that, they cost around $120 to $250 per year. Northwest Registered Agent, specifically, charges $125 per year for access to their registered agent service and LegalZoom charges $249 per year.
Northwest Registered Agent
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Cost
$29 + state filing fee for LLC formation, corporation and nonprofit
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App available?
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Standout features
Northwest Registered Agent offers mainly business formation services and services for registered agents, trademarking, mail forwarding, EINs, business websites and business emails
Pros
- Simple pricing plan
- Allows for multiple registered agents with a discount of $100/year per additional registered agent state
- Offers website building and business email services
- Offers one free year of Registered Agent service
Cons
- Doesn’t offer an app
- Registered Agent service is an additional $125/year after the first year
LegalZoom (Small Business Services)
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Cost
$0 + state filing fees for Basic plan; $249 + state filing fees for Pro plan; $299 + state filing fees for Premium plan
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App available?
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Standout features
LegalZoom offers all sorts of services to help you register your business, fulfill annual reporting and licensing requirements and protect your business with trademarking, copyrighting and assistance from attorneys.
Pros
- For the Basic plan you’ll just pay the state filing fee
- Well-known brand in the industry
Cons
- LegalZoom charges additional fees for some services even with the Pro and Premium plans. For instance, LZ Books is free for one year then $9.99/month after; the Business Attorney plan for Premium is free for 30 days then $49/month after
- Registered agent service is quite pricey at $249/year
You can also go the DIY route and file your annual report on your Secretary of State’s website.
What’s the deadline for filing an annual report?
The deadline for filing your annual report can vary depending on your state, but some states require you to file it by the end of the month in which you first registered your company. So, if you registered your company in November 2024, your deadline to file your annual report would be Nov. 30, 2025.
You’ll also have to pay a filing fee for your annual report, which can vary by state. New Jersey, for instance, charges a $75 annual report filing fee.
FAQs
Is an annual report mandatory?
Yes, annual reports are mandatory for the entities that need to file them to remain in good standing. If you don’t file your annual report, you may be hit with late fees or in extreme cases, face involuntary dissolution of your business.
What’s the difference between an annual report and a beneficial ownership information (BOI) report?
The annual report simply confirms information about your business and registered agent and a BOI report tells FINCEN who actually owns your company. The BOI report is a one-time filing but an annual report needs to be done every year.
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