4 Steps You Need to Take for Your LLC Renewal
Did you know that forming a Limited Liability Company (LLC) is not enough?
You also need to fulfill ongoing legal and documentation requirements for your LLC to stay legally compliant. However, the legal requirements will depend on the nature of your business and the state in which you form your LLC.
Wondering what exactly you need to do for LLC renewal?
As an LLC owner, you must file an annual report with the Secretary of State. This applies to all LLCs, regardless of how big or small your business may be.
Let’s take a look at what an annual report is and how to file it for LLC renewal.
What Is an Annual Report?
An annual report is a statement that details the activities of your Limited Liability Company throughout the prior year. Some states call this annual report from an LLC a “Statement of Information.”
This report gives the state government authorities information about:
- The address of the head office of your Limited Liability Company (LLC)
- The names and addresses of managing members of your LLC
- The address and authorized signature of the Registered Agent of your LLC
- Important identification numbers of your company
The purpose behind filing an annual report is to keep your state authorities updated and informed about any changes in the ownership and other details of your business. For example, your LLC might have new members as managers or a new office in another location.
Your annual filing requirements may vary based on the state in which you form your LLC. In place of annual reports, some states allow you to file a biennial statement for your LLC renewal.
Some states pick a specific day for the filing of annual reports of all businesses regardless of the date of formation. Other states require you to file an annual report for your LLC renewal on the anniversary date of the formation of your LLC.
You should check the LLC renewal requirements with your state authorities at the onset of your business to avoid disputes.
LLC Renewal: How to File an Annual Report to Keep Your LLC Going
The easiest way to renew your LLC is to have a lawyer or company do it for you. Just like GovDocFiling allows you to form an LLC easily using one, simple application, there are companies that can help you with LLC renewal.
If you plan to do it manually, here are the steps you need to follow to file an annual report for your LLC renewal:
1. Find Out the Due Dates for Your LLC Annual Report
As mentioned earlier, different states have different rules for LLC renewal. While some states ask business owners to file an annual report on a pre-determined date, other states might ask you to file an annual report on the anniversary date of your LLC formation.
Some states only require you to file a biennial report (once every two years) to update the changes in the membership, ownership, and management of your LLC.
You should find out your LLC renewal report date from your Secretary of State or your state’s website and put it on your calendar, right at the onset of your business.
2. Create an Annual Report (Statement of Information) for LLC Renewal
You should create an annual report, which is also referred to as “Statement of Information” in many states.
Include the details that we mentioned in the above section, including names and addresses of your LLC members, Registered Agent, and your head office. Also, include details about any organizational and management changes in the company.
Your State of Information can also include:
- A one-page summary of all financial and other important information about your company
- A letter from the owner of the LLC on business growth and future goals
- List of opportunities for business growth and expansion
- List of threats or issues to business success and plans to overcome them
3. Put Together All Necessary Business Documentation
Some states also require you to file other business documentation, especially if any major details, names, and addresses have changed in your business. You might need to submit relevant documents to verify the changes.
You should also create additional business and financial reports for your company investors, LLC members, and potential clients.
While there are no particular requirements to meet, these additional LLC reports can include:
- Balance sheets to give details about the financial assets, cash-in-hand, properties, and liabilities of your LLC
- Profit and loss statements reporting the income, expenses, and profits of your business
- Financial plans to document expected revenue and profits for the next year
4. File the Statement of Information with Your Secretary of State
Once you’ve created the annual report or Statement of Information for your LLC renewal, you should file the report with your Secretary of State. You will also need to pay an annual reporting fee to the state government.
The LLC renewal fee (or annual reporting fee) fee varies from state to state and could range between $50 and $800.
Along with the Statement of Information, submit all other required business documents based on requirements listed by your state authorities.
Ready to File an Annual Report for Your LLC Renewal?
Whether you are filing an annual report for your LLC renewal or creating other business and financial reports, make sure that you understand the requirements properly. You should put in enough time and effort to prepare the most authentic and easy-to-understand annual reports for your LLC.
If needed, hire a lawyer, business consultant, or company to help you form an LLC and fulfill the ongoing legal requirements to help your LLC stay legally compliant.
Do you need help with LLC renewal? Or, do you need to form an LLC from scratch? In both cases, feel free to connect with our LLC formation experts in the comments below.