Annual Report
Definition
An Annual Report (sometimes called a Statement of Information or Periodic Report) is a mandatory filing required by the vast majority of states. It is a simple form that updates the state on your LLC's basic information, such as your principal address, member names, and registered agent details. Most states charge a fee to file this report.
Why it matters
The annual report is the primary way states keep their corporate databases accurate. It is a strict compliance requirement. If you fail to file your annual report by the state's deadline, you will be hit with late fees. If you ignore it completely, the state will administratively dissolve your LLC, legally stripping you of your limited liability protection.
Example
Florida requires all LLCs to file an annual report between January 1st and May 1st every year, along with a $138.75 fee. If an LLC owner forgets to file by May 1st, Florida automatically tacks on a massive $400 late penalty.