Our services
LLC Tax Returns
EIN / ITIN
After your U.S. LLC is formed, there are still administrative formalities to be completed with the state in which you registered your legal entity.
There are certain rules and regulations that you must follow as a manager, director or owner of a business. One of these rules is to file an annual report for your business. Some U.S. states impose this requirement on companies domiciled there (e.g. Florida and Wyoming). American LLCs are no exception to this rule.
The U.S. government requires the filing of an annual LLC report and the payment of a filing fee each year.
The name of the annual report depends on each state:
- Annual Report
- Annual Statement
- Periodic Report
- Statement of Information
- Biennial Statement
- Etc.
The filing of the Annual Report LLC serves to keep your entity in business. You must therefore be vigilant as to the deadline to avoid any failure to file and be sanctioned.
This obligation applies to companies of all sizes and to all types of partners. Also, LLCs owned by NRAs are affected. In addition, a few states do not require the filing of the Annual Report.
Under U.S. law, you are required to file a form updating your LLC information with the appropriate state agency. You will not have to provide the same information for your Annual Report LLC in every state. In fact, the scope of the information to be filed varies from state to state.
Generally, you will need to confirm the company name and address, registered agent information, and other details listed in your company's incorporation documents.
Furthermore, it is imperative to declare any change during the life of your company, i.e. any transfer of shares, and any major event related to your LCL: change of RA, change of address or partners, etc.
The advantage of the LLC is that there is no accounting requirement. Thus, your entity allows you to make considerable savings. Nevertheless, you are not immune from accounting constraints in some states. There may be additional accounting values required by some states, which require you to keep structured accounting records for your business. For example, the State of Wyoming requires LLC owners to report all intangible, tangible, and financial assets held by the entity in the annual report.
The purpose of the annual report is to keep your US LLC in compliance with applicable law. In order to do this, the administration must be kept informed of any changes in the details or ownership of your company (e.g., change of address or change of ownership since the last report).
If there is no change, you are still required to file your LLC Annual Report to confirm the accuracy of current state records. This allows you to continue operating your structure.
In addition to filing your annual report, you must pay a fee, which varies from one state to another from $9/year to $1200/year. It is therefore necessary to know this information when choosing the jurisdiction in which you are preparing to register your entity. In this matter, our specialists propose you to optimize your choice of state of domicile of your LLC in order to reduce the costs.
Be careful about the deadline for filing your annual report. If you fail to do so, you may be subject to penalties.
True "annual" reports may be required by some states, while others require reports with a different periodicity. You should therefore check what will be required by the state in which you have registered your U.S. entity.
The filing deadline depends on the appropriate state agency and varies from state to state. It is recommended that you file the report well in advance of the due date to avoid any potential late penalties. In addition, you can check with that agency to obtain the specific due date for your entity.
One state may require you to file the LLC annual report on a predetermined date for all entities, regardless of when they were formed. Other states may require filing on the anniversary date of formation.
Our specialists offer to assist you in the preparation and filing of your LLC's annual report, thus ensuring that the filing complies with all applicable laws.
If you do not file your Annual Report LLC, you will receive a reminder before the deadline by some states. It's important to note that not all states do. Therefore, you must remain vigilant and keep an eye on the calendar. Furthermore, even if you paid an agent to form your U.S. LLC, filing the annual report is your responsibility to keep your entity in good standing. Thus, companies that fail to file their Annual Report LLCs face consequences that differ slightly by state.
Your company will be assessed a late filing penalty by the U.S. government to encourage you to file your annual report as soon as possible. The amount of the penalty depends on each state. For example, in Florida, it is $400. Thereafter, you are given a reprieve before the U.S. government takes further action against your LLC.
If you do not pay your late penalty, you will lose your status and the state will administratively dissolve your business. Your case may come to the attention of the IRS, which will audit your tax returns. As a result, you and your partners will lose liability protection.
If your LLC is dissolved by the U.S. government, a reinstatement procedure with the appropriate state agency will have to be initiated.
