Every business, either a corporation or a partnership, is required to file its annual report with the corresponding office. And the rule is the same with limited liability companies or LLCs. To know more, here are some questions and answers concerning these reports which might be of great help to those who would like to put up an LLC:
• What is an annual report and who is tasked to file such?
This report is simply a complete documentation of a company’s accomplishments and undertakings throughout the previous fiscal year. An official member or partner of the company is authorized to file the annual reports under Tennessee laws.
• Where should one file this report? And in what manner?
In Tennessee, the annual report of LLCs and other forms of businesses is filed with the office of the Secretary of State. The traditional way of filing is through mail but online filing is now allowed. The online report filing, however, requires a credit card convenience fee which is $8.25 for LLCs.
In the online method, one will just have to go to the website of the office of the Secretary of State and fill out the necessary forms as well as any submit other requirements.
• When is an annual report supposed to be filed?
Annual reports are filed on or before the first day of the fourth month, following the close of the fiscal year. Generally, the fiscal year ends on December 31st, hence the filing is due on or before April 1st of the succeeding year.
• What exactly should an annual report comprise of?
Because the website of the Secretary of State already provides a preprinted form, one will no longer have any trouble providing the necessary information required in his LLC’s report.
The form customarily contains basic facts about the LLC such as its address, the registered agent’s name and address, and the list of officers as well as the members of the LLC. Contrary to what most people know, these reports do not contain monetary information.
• Are there fees to be paid? And if yes, how much?
Yes, an LLC is required to pay a fee when it files its annual report. Tennessee requires a minimum fee of $300, with a $50 per member charge, and a maximum fee of $3,000. But of course, this may still vary depending on various circumstances, such as when there is a change in the designation of a registered agent or if the LLC is a domestic or foreign business.
• Is there a penalty for failure to file an annual report?
There is none, but a delinquency notice will be sent to the LLC or specifically, to its registered agent. If the report is still not filed within 2 months or 60 days from receipt of such notice, the LLC will be administratively cancelled.