Most people assume annual reports are only for publicly traded companies, but that’s not necessarily the case. Many states also require private companies to file an annual report to stay in good standing. Let’s look at what goes into an annual report, which states require them, and how to stay compliant.

What to include in your small business annual report

An annual report summarizes key details about your business, helping the state verify that your company’s information is up to date. The exact process can vary, but the report will typically include:

  • The legal business name and address.
  • The business’s purpose.
  • The names and addresses of owners, members, or officers.
  • The registered agent’s name and address.
  • An employer identification number or state business ID number.
  • Any changes to ownership or management.
  • The signatures of authorized parties.

Even if your state doesn’t require much information to be included in the annual report, it’s a good idea to keep your own report each year. Doing so helps you track growth while being transparent with any partners or investors.

Which states require annual vs. biennial reports

Nearly every state has reporting requirements, but the filing frequency and cost depend on where your company is registered. For example:

  • Delaware requires corporations to file an annual report and pay a franchise tax by March 1 each year.
  • California requires corporations and limited liability companies to file a Statement of Information annually.
  • Florida requires all business entities to file by May 1 each year to maintain an active status.

Other states, like Indiana and Iowa, only require updates every two years. In addition, the filing deadline and fees can vary substantially. Most fees range from $10 to $150, but missing a deadline can lead to late fees or even administrative dissolution. Always check the secretary of state website for the specific rules in your location.

Even if your state doesn’t require much information to be included in the annual report, it’s a good idea to keep your own report each year. Doing so helps you track growth while being transparent with any partners or investors.

Tips for staying compliant year after year

Filing an annual report is fairly simple, but it’s easy to forget. Here are some strategies for staying on top of it each year:

  • Set digital reminders. Mark the filing deadline on your business calendar and set multiple alerts so you don’t forget.
  • Verify your contact information. Double-check that your registered agent’s name and address are correct to ensure the state can reach you with notices or updates.
  • Keep your records organized. Store copies of previous filings, confirmations, and payment receipts for at least three to five years.
  • File early. Don’t wait until the last day to file. State websites can get overloaded near deadlines, and payment systems may experience delays.
  • Work with a professional. Many business owners use a registered agent or compliance service to handle filings automatically. This can be especially useful if your business operates in multiple states.

What happens if you don't file an annual report?

Neglecting to file an annual report with the state can result in various consequences for small business owners. The severity of these consequences varies depending on where you live, but most businesses can expect to get hit with a late penalty. If you pay the late penalty and submit your report immediately, this should take care of the problem.

But if you continue to neglect your filing requirements, the state could revoke your right to do business. This means that in the eyes of the state, your business no longer exists. If that happens, your business could lose its limited liability protection, and your personal assets would be legally exposed in the event of a lawsuit.

And if your business is in poor standing with the state, it can affect your credit rating and ability to secure financing. So you should never ignore notices from the state and always meet your annual filing requirements.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.

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