Although not required in the state of Arizona, it’s smart for LLCs to file an annual report and understand the information they need to submit.
This document is not difficult to create, but if you neglect to file it, the consequences range from mild to severe.
So, how do you write an annual report for an LLC? What information and fees are required?
Let’s take a deep dive into these documents that help ensure you’re in good standing with the state!
LLCs also known as limited liability companies are popular business structures, especially among growing startup businesses. This business entity is controlled by the owner, or owners, and offers flexibility for management, taxes, and more.
Forming an LLC also reduces your risks of liability if financial issues were to strike your business. Many business owners choose to form LLCs because of the hybrid nature of combining elements from corporate structures and partnerships.
An LLC annual report is a document that provides the details of your company’s activities throughout the previous year. It also lists the important details of your business such as the member’s roles and profits earned or lost.
An annual report also shows any changes that have occurred since the last filing period or any updated information. This information included things like the names and addresses of directors or members, as well as the registered agent’s information.
The main purpose of an annual report is to keep your LLC in good standing with the state. This means being compliant with all state regulations to receive LLC benefits.
The information you include in the LLC annual report varies from state to state. However, you’ll generally have to include the following information:
Company Address – This is the physical address of your Arizona business. The company address does not have to be the registered agent’s address. If any changes have occurred within the last year of business, you need to report them on the annual report.
Managers – Management information must be filed and updated on the LLC annual report. This means updating the names and addresses of the LLC managers, as well as any other pertinent information.
Purpose of Business – A flexible feature for an LLC business structure is being allowed to change the purpose of your business. If your business operates in a specific niche or industry, it needs to be listed.
Business ID numbers – The LLC annual report is where you will update any business ID numbers.
Shares issued by the company – This information is important tax information that you want to keep updated and handy.
Registered Agents – If needed, you want to ensure that you update the name and address of the registered agent because this is the person who receives legal documents on your business’s behalf.
After completing the necessary paperwork and obtaining the information required, you must then submit it to the state along with the filing fee. The filing fee varies based on state, but in Arizona it’s $45.
In Arizona, all businesses are required to file annual reports to ensure good standing with the state – except LLCs! If you do choose to file an annual report, you must determine your filing date and fee, fill out the report online or on paper, and send it online or through the mail.
What’s included in your annual report varies. The most common information required is the name of your business, EIN, type of business, business purpose, registered agent, and shareholders.
Filing annual reports can be stressful and confusing because the requirements depend on how the state classifies your business. Annual reports \show that your company is still active and in compliance.
If you do not file on time, the state can terminate your LLC and you’ll have to work hard and pay extra to have it reinstated. In addition to the $45 filing fee, a late fee of $9 will be charged each month the report is late.
It’s important to work with a business lawyer to ensure all information is correct and you stay in compliance with the state.