WHAT IS AN ANNUAL REPORT?
An annual report is a document that contains comprehensive information about the company and typically includes its financial performance and activities over the prior fiscal year. Depending on a type of business entity, annual reports may require to be filed annually with the Secretary of State where the company operates. Some annual reports are prepared just to keep employees, shareholders, and the community informed about the company’s financial standing.
An annual report typically contains the information about the names and addresses of the managing members and directors of a corporation or LLC, the address of its registered agent, the company’s financial breakdown (including a balance sheet summary, a cash flow statement, capital investment data, an auditor's report, projected revenues and expenses, etc.), statement of the company's core values, mission statement, and future objectives, a report from the CEO with an update on current and potential investors on the company's economic status, key events, activities and achievements, and so forth.
An annual report is usually prepared by a business manager, director, or owner, and must follow certain rules. BizStarter can help you prepare your company’s annual report and file it with the state government if needed.
Annual reports for LLCs and Corporations
If you registered your business as an LLC, S Corporation, C Corporation, or LLP you are required to file an annual report with the Secretary of State office in the state where your company operates. If you are registered as a sole proprietor or partnership, you are not required to formally file an annual report.
In some states, the company’s annual report is filed every second year, so it is more of a biannual report. Also, in some states, LLCs are required to submit a “Statement of information”, which asks for the same information as an annual report but under a different name.
What information do I need to include in an annual LLC or Corporate Report?
The purpose of an annual report is to provide information about your business to the state, including any changes to the details or ownership of your business.
Typical annual reports include the following information:
– The address of the principal business (headquarters) of the company
– The names and addresses of the management team (directors and officers in a corporation, members and managers in an LLC)
– Identification numbers for your business, such as EIN
– The purpose and mission statement of your business
– Information about authorized registered agents
– Information on shares of stock issued by the business.
An annual business report can be divided into several areas:
An executive summary: A short (typically page long) overview of company’s key financial and other important statistics about the business.
Letter from the chairman/board of directors: A brief message on business performance, forecast, etc.
Opportunities: A description of major opportunities for growth and expansion.
Risks: A brief overview of any potential threats to the business with suggestions on how they can be addressed.
How do I file an annual report?
Normally annual reports for a corporation or an LLC can be filed online on the website of your state government. Filing an annual report also requires a filing fee that can range between $50 and $400 depending on the state where you registered your business.
Is there a deadline for filing an annual report?
Depending on the state where your business is registered you may be required to file your report on the anniversary date of your business formation, or by a certain predetermined date for all companies regardless of the date they were established. You will need to check with your state to see when you are required to file an annual report for your business. Some states will also require you to file other business documentation if you have important changes in your business.
OTHER TYPES OF BUSINESS REPORTING
In addition to filing an annual report with the state government your company may need to produce other business reports. Below are the most common reports a business can be expected to produce
Financial Report
Tracking the financial performance of a company is the most important task for every business owner. A comprehensive financial report helps business owners, shareholders and investors monitor company’s performance and make sure that it is in good health and makes profits. Typically, financial reports include:
• Balance sheet which covers the information on the company’s financial assets, liabilities, cash-n-hand, and other key factors
• Profit and loss (P&L) including the income, expenses, revenues, and profits of a business
• Financial projections and forecasts
• Shares and stock issued which covers the volume and value of all issued stock.
Sales and Revenue Report
A part of a general Financial Report, Sales and Revenue Report provides an overview of the sales activities within a company. This is the most basic type of business report you can prepare. Sales and Revenue Report lists your sales statistics in a given period of time. With this information, you can compare your sales and expenses to determine your profit margin. Sales and Revenue Report can also help you manage your future sales, including deciding on the best times for your marketing efforts.
Inventory Report
Inventory reports allow you to keep track of how many products you have on hand at a given time. You don’t have to make a formal inventory report, many business owners keep a simple checklist to keep track of their inventory. If your business has a lot of different inventory, you may benefit from compiling an inventory ranking report, which helps you see how well your products sell in comparison to the overhead cost of keeping them in stock.
Marketing Report
How well you market your business will often determine your business success. That is why it is so important to keep track of your marketing efforts and expenses to see what helps your business. By compiling and analyzing this information, you can see where your sales are coming from to focus on marketing campaigns that bring a good return on investment.
Website Traffic Report
With virtually every business having an online presence it is important to keep track of the online performance of your business. You can track your web traffic and social media performance report and tailor it specifically to your business needs to get all kinds of information, including engagement levels or demographics.
BIZSTARTER CAN HELP YOU WITH YOUR ANNUAL REPORT
If you are a new business owner or simply do not have the time to prepare annual reports, BizStarter can take care of this task for you. We will help you compile your annual report, file it with the state government, and keep track of all the reporting deadlines.
INITIAL REPORTS
What is an Initial Report?
Initial reports are required in a few states at the beginning of the formation of a corporation or LLC. An initial report is fairly similar in all states that require it with some slight variations, and typically includes the following information: the name and the address of the registered agent, the address of the business head office, the names, and in some cases addresses, of any directors, officers, and members of the new business entity, and a brief description of the activities of the business.
Which state does require an Initial Report?
There are only ten states that require an Initial Report: Alabama, Alaska, California, Connecticut, Georgia, Missouri, Nevada, New Mexico, Oklahoma, and Washington. Initial Report (also sometimes called a “Statement of Information”) is required to operate a business legally in the mentioned states. If you don’t file your initial report or file it late, your corporation or LLC can be fined, or in the worst-case scenario, it even can be involuntary dissolved.
Do I have to pay for filing an Initial Report?
Except Alaska, most states require paying a minimal fee for filing an Initial Report. The fees range from $10 to $150. Nevada and Washington include the cost of the initial report in their business registration fees.
Deadline for filing an Initial Report
Most states require filing of the Initial Report within 90 days of business registration. Failure to file an Initial Report in time will result in penalty fees, or in some cases, even in suspension or involuntary dissolution of the company.
Need to file an Initial Report? BizStarter can help!
In most states, an Initial Report can be filed online at the state government website. The filing process is fairly straightforward, however, filling out government forms can be quite intimidating and incorrectly completed forms may result in processing delays and extra costs. BizStarter has extensive experience in filing business reports and other forms and can help your business file all necessity paperwork for a small fee. You can run your business, while we prepare and file all the required paperwork for your business to be compliant with the state laws.
Processing Time
Generally, the standard processing time for filing an Initial Report is 2 to 4 weeks. If you need your report faster than that, we offer an expedited filing service (1 to 2 weeks) for a fee.