What does it mean to be “in compliance”?
Each year your company will need to comply with certain annual requirements to maintain an active and in good standing status. Each state is different, and the requirements vary depending on the type of entity that was formed.
What is an Annual Report?
Many states have annual report filing requirements that are due to the Division of Corporations or Secretary of State within the state where your business is registered. The information required varies from state to state and are required in addition to tax payments and other annual fees. Failure to complete annual report filings can result in excessive fines and a status of inactive or involuntarily dissolved.
With Accumera as your registered agent, we will receive all notices, automatically remind you of this filing each year, and forward to you for action. Accumera does provide Annual Report Filing Services and can file these for you for an additional annual charge.
Although it may seem obvious one of the most important things you need to do to keep your company active is to file your state and federal tax returns. It is often thought that if the company did not conduct business during the tax year that annual returns do not need to be completed and filed. However, in most states, and with the IRS, you are required to file a return even if no business was conducted. We suggest you retain the services of an accountant to advise you of the required state and federal filings for your entity type.
States require that all corporations hold annual meetings with shareholders and directors and record the minutes of each meeting. Copies of the minutes should be kept on record with the corporate kit as proof of the business from the meeting. The method and date on which these meetings are held is typically recorded in the corporate bylaws. These meetings are held to elect new directors or officers and discuss any other business the company has. By following this formality, the corporation will maintain its corporate identity and limited liability protection.
While LLC’s are not required to hold annual meetings or record minutes of those meetings it is recommended that the LLC adopt a procedure and date to have an annual meeting to discuss any LLC issues and record notice of the outcome in the minutes.
As with annual reports we suggest that you add a reminder to your calendar to make sure you comply with the annual meeting requirements as set by your company.