What Is an LLC Annual Report?

By Cindy DeRuyter, J.D.

What Is an LLC Annual Report?

By Cindy DeRuyter, J.D.

The limited liability company (LLC) structure is attractive to many business owners, in part because the ongoing reporting requirements and business formalities may be less onerous than what's required for corporations. However, LLCs in many states must file annual reports in order to continue operating in compliance.

Backlit man looks at two sheets of paper in front of laptop

LLCs are subject to the laws of the states where they conduct business. It is important for owners, referred to as members, to understand their specific obligations under state laws.

Note that your state may call the LLC annual report a “statement of information," “annual statement," or something else entirely. In addition, some states may require more or less frequent reports.

Understanding the Scope of the LLC Annual Report

LLC annual reports typically do not contain the same type of detailed financial information that public companies provide to their shareholders each year. Instead, these reports generally focus on providing current information for state records. The data LLCs report might include updates to the business's address or registered agent or changes to the LLC's membership roster.

Some large businesses structured as LLCs may choose to adopt and follow more detailed internal annual reporting for their own benefit, but the simpler informational filings are usually all the state requires.

How to Complete Annual Report Filings

If your state requires annual filings to maintain your LLC, check with the state agency that regulates businesses—usually the Secretary of State—to determine the preferred method for making such reports. In most cases, states make sample forms available on their websites. You may be able to download and complete the form or fill it out and submit it electronically.

Using the state's form is the best way to ensure that you submit a complete report. In some states, you need to provide contact or other identifying information about each LLC member, regardless of whether they play an active role in your operations.

Punctual Filing of Reports and Fees

If your business must make annual or other periodic reports, pay attention to filing deadlines and required fees. Failure to return your annual report and pay required fees by the deadline could result in your LLC being subject to an administrative dissolution—meaning your company would no longer be authorized to conduct business in the state.

In addition to being a hassle for you to reinstate your company, an administrative dissolution could have other unwanted consequences. In most cases, a business would need to pay additional fees or take other remedial actions before being reinstated. In worst-case scenarios, an administrative dissolution could be seen as an automatic default on loans or business lines of credit.

Annual reports might not be the only yearly requirement for keeping your LLC in compliance. For example, some states impose an annual franchise tax on LLCs and other businesses. Check with your Secretary of State to ensure your business meets all of its annual requirements.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.