A mandatory yearly filing to a U.S. state that updates the company’s information (like directors, officers, address) and confirms it’s in compliance, often accompanied by a fee.
What is an Annual Report?
An annual report is a filing that most U.S. states require companies to submit each year (or in some cases, every two years). It ensures that the state has accurate and current information about the company, including its business address, registered agent, ownership or management structure, and sometimes financial status. For example, a Delaware corporation must file an annual report listing all directors and at least one officer, and pay the franchise tax, by March 1st each year. In contrast, Delaware LLCs currently do not file an annual report (they just pay an annual tax), but many other states (like Florida, California, etc.) require annual reports for LLCs. Despite the name, this report is typically administrative and not the same as a financial report for shareholders.
Failure to file an annual report on time can result in penalties, late fees, or even suspension or dissolution of the company. Filing deadlines, fees, and requirements vary by state and entity type (LLC or corporation). Some states require annual reports even if the company hasn’t conducted any business. Keeping your annual report up to date is essential for maintaining good standing, which is often needed when applying for loans, entering contracts, or expanding into other states.
