Annual Report Basics for Construction Business Owners

 

By Jennifer Friedman

Annual report season is here and deadlines are just around the corner. For corporations formed in Delaware, annual reports needed to be filed by March 1, and many other states have filing deadlines in April-June.  Are you prepared to file your annual report? Most states require incorporated businesses and limited liability companies (LLCs) to file an annual report. It is imperative to file correctly and on time in order to maintain good standing and avoid fees or more severe repercussions.

Annual Report Requirements

The key elements of an annual report are:

  • The business entity’s legal name;
  • The principal office address;
  • The registered agent’s name and address; and
  • The names and business addresses of the officers, directors and managers

Tips For Filing Annual Reports

  • Track the filing deadlines for all of your active corporations / LLCs.
  • Deadlines vary depending on which state you are filing with so it is imperative to track the dates and renewal periods.
  • Prepare the annual reports.
  • Since the specifics vary from state to state, it is important to pay attention to required information for each of the reports.
  • File the completed documents with the state.

Each state has its own annual report guidelines so you must check the specifics with the state you in which you incorporated your company. If you own a construction business that operates in several states, you will have to file a separate report in the formation state and each state where the company has qualified to do business as a foreign company. If you are overwhelmed with the thought of running your company and handling detail-sensitive documents such as an annual report, consider a professional registered agent who may be able to assist you in preparing your annual report the right way.

Consequences of Not Submitting a Proper Annual Report

To facilitate on-time filing, states take disciplinary action on the companies that do not file correctly or by the deadline. Businesses that file after the deadline must pay a late fee, in addition to the original annual report fee. Failure to file an annual report altogether can result in the Secretary of State dissolving your company or a revocation of the business entity in the state records. If this were to transpire, your company would have to cease all construction work, losing out on bids and business. And, you may become personal liable for business debts and judgments incurred during this time.

While it is usually possible to be reinstated, this is not a certainty and can occur only after you submit your annual report would your business be reinstated. Annual reports may seem like a hassle but they serve the important purpose of keeping your company on record with the necessary government agencies. By filing early and well ahead of the deadline, you are setting your construction business up for a prosperous year with less worry and more opportunities.

Jennifer Friedman is the CMO of the small business segment of CT, a Wolters Kluwer Company, which provides legal compliance solutions to small businesses. In this role, Jennifer directs all activities related to digital marketing and advertising to help build the brand through innovation, partnerships, and enhancing the customer experience.

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