A Beginner's Guide to Annual Reports Part Two: Filing an Annual Report

In last week’s blog post, we offered a general overview of the Annual Report requirement. This week, we will discuss what to expect when filing an Annual Report.

Figuring out  how to file an Annual Report can be tricky. Most state filing offices now offer an online feature where filers can input Annual Report information directly into a web-form. Online filing is typically offered as a convenient alternative to paper filing, but some states, including Delaware, have taken it a step farther and mandated electronic filing.

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In states where online filing is not available, it is critical to use the correct form specific to the state and entity type. Filing officers may reject a document that is presented for filing on an incorrect or outdated form, which could result in a missed filing deadline and delinquency for your entity. Keep in mind that the appropriate form may go by a different name. For example, in California, corporations and LLCs file a Statement of Information while in Nevada, corporations file an Annual List of Officers and Directors.

The fees for filing an Annual Report vary from state to state, as do the methods for determining amounts due. Some states charge a flat rate for filing; in these cases you can expect to pay fees ranging anywhere from $15 to $500 per entity. Other states charge according to a sliding scale or formula based on factors such as the number of authorized shares or number of members/partners, which can drive filing fees much higher.

The most challenging aspect of filing Annual Reports is keeping track of due dates, particularly if you are managing multiple entities across many jurisdictions.

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The majority of states require an Annual Report, but some require filing only every other year or even less frequently. Some states assign a fixed due date for Annual Reports determined by entity type. In Delaware for example, all domestic corporations have a due date of March 1, while foreign corporations must file by June 30. Another common method adopted by filing offices is a system where the due date is based on the anniversary of when the entity formed or qualified in that state.