Your LLC Annual Report and Tax Filing Requirements

If you run a limited liability company (LLC), you might have to file a report with your state every year or every other year. Many states require LLCs to submit a filing to update the state's records for the business.

Along with your report, you could need to pay taxes and file state tax returns throughout the year. Depending on your state and business activities, you could be responsible for business and franchise taxes, employer taxes, and sales and use tax.

To learn the rules for your state, check out our state guide to LLC tax and filing requirements.

LLC Annual Report Filing Requirements

Most states require you to file a report on a regular basis to update your LLC's information. For example, you usually have to confirm or update the addresses of your registered agent and principal office.

Each state has different rules about:

• whether you must file an LLC report
• when and how often the report need to be filed
• what fees must be paid, and
• whether other documents need to be filed along with the report.

If you file your report every year, the report will usually be called an "annual report." If you file your report every other year, your report is usually called a "biennial report." However, states have other names for these kinds of reports. Your state might call the report a "registration," "renewal," "statement of information," or some similar name.

Are You Required to File an LLC Annual Report?

As an LLC owner, you must first determine whether your state even requires you to file an annual report or statement of information. In an effort to improve their business climate, a number of states don't require LLCs to file a report, such as Arizona, Delaware, and Texas.

However, most states do require an LLC to submit a report. States use these reports to find out basic information about your LLC and to determine whether your LLC is still operating.

Most states provide a simple form for LLC members to fill out. These forms usually ask for basic information such as your LLC's:

• business name
• employer identification number (EIN)
• address of its principal place of business
• mailing address
• business purpose
• names and addresses of its owners (members), and
• name and address of its registered agent.

In some instances, you might have to complete other government filings if there are important changes to your business information. For example, you might need to file additional forms if your LLC has a new owner, you changed your business's name, or you want to dissolve your LLC voluntarily.

How Often Must Your Report Be Filed?

The term "annual" report is a bit of a misnomer because not all states require LLCs to file a yearly report. Usually, states either require LLCs to submit a filing every year or every other year.

Annual reports. Most states require LLCs to submit a report every year by a certain deadline.

Biennial reports. After an initial filing, some states—such as California, Iowa, and Indiana— require LLCs to file a report every other year. In some states, you'll file a report every two years from the year you formed your LLC. For instance, if you filed your report in 2020, then your next report would be filed two years later in 2022. Other states require the reports to be filed on odd years regardless of when you formed your LLC. If you're in one of those states and filed your LLC in 2020, for example, then your next report would be due in 2021.

What Is the Deadline to File an Annual Report?

Besides how often you must file, you also need to determine the appropriate date to make your report. Each state has its own filing deadlines:

• Some states set forth one uniform date for all LLCs to file their reports (for example, June 1).
• Other states opt to have LLCs file on or before the anniversary date of their LLC's formation—sometimes on the exact anniversary date or on the first or last day of your LLC's anniversary month.
• Other states set a range of several months in which you must file your report.

If you miss your deadline, you can usually still file your report. Some states give you a grace period where you can file your report without a fee. Other states let you file your report late but with a penalty.

How Much Does the Annual Filing Cost?

Depending on your state, you could need to pay a fee to file your report. Filing fees vary greatly between states. Some states only collect a nominal fee, such as $10, while others might charge hundreds of dollars to file. You should check with your state for its current filing fees. You can usually find this information on the website of the department that handles these filings (usually the secretary of state's office).

Are There Consequences for Not Filing the Annual Report?

Failing to file a required LLC report and pay the associated fee could result in a number of potential consequences:

• The state could involuntarily or administratively dissolve your LLC.
• You could have to pay any outstanding fees or taxes owed plus any applicable late penalties.
• You could lose your LLC status and thus lose your limited liability protections as an owner.
• You could breach your duties under your LLC's operating agreement or be in default under your LLC's loan and insurance obligations.

The consequences for not filing your report depend on your state and your contractual obligations. For example, suppose you're responsible for submitting your company's annual report under the LLC operating agreement. But you've failed to submit the report for the past two years. Your operating agreement might say that you're personally responsible for paying the late fees and any interest that's accumulated because of the late filing.

State-Specific LLC Report Filing Requirements

Below you can find a list of each state's LLC reporting requirements. This information is provided as of January 2024.

States With No LLC Report Filing Requirements

You don't need to file a report for your LLC in the following states:

• Alabama (The LLC report is included with the business privilege tax return.)
• Arizona
• Delaware
• Missouri
• New Mexico
• Ohio
• South Carolina, and
• Texas.

States With LLC Annual Report Filing Requirements

States With LLC Biennial Report Filings

LLC Tax Filing Requirements

Your business could be responsible for filing federal and state tax returns and paying various taxes. You can find a detailed breakdown of each state's LLC tax filing requirements along with the LLC reporting requirements (linked above).

Income tax. By default, LLCs are taxed as partnerships, which are pass-through tax entities. With a pass-through entity (like an LLC taxed as a partnership), the business's income passes through to the owners, who pay taxes on and report their share of the income on their individual returns. The business itself doesn't pay income tax. However, some LLCs elect to be taxed as corporations instead of as partnerships. In these instances, your company will need to pay state and federal corporate taxes and file the appropriate returns. Some states don't have an income tax. In those states, you only need to worry about federal income tax. (For more, see our article on how LLCs are taxed.)

Franchise tax. Some states impose a franchise tax—sometimes called a "privilege tax"—on businesses. States will charge businesses a fee or tax for the privilege of doing business in the state. The fee is usually either a set flat fee or a fee based on the company's income that year.

Employer tax. If your LLC has employees, you probably need to pay employer taxes to the federal and state government. Federally, employers and their employees each pay half of the employee's Social Security and Medicare taxes. Your business will probably also need to pay federal and state unemployment insurance (UI) tax. If your state has a personal income tax, you'll also need to withhold employee income taxes.

Sales and use tax. If your business sells goods or provides services that are taxable, then you'll need to collect and report sales tax. After collecting the appropriate tax from the customer, you'll send it to the appropriate state taxing agency. In addition to state sales tax, you might need to collect local sales tax. Some states—including Alaska, Delaware, Montana, New Hampshire, and Oregon—don't have sales tax. Many states will also apply a use tax, a tax levied on goods and services that are used or consumed within the state when sales tax isn't collected.

You'll need to pay your business taxes periodically. Depending on your state and the type of tax, these taxes could be due every year, every quarter, every month, or every week or day.

In most states, you'll need to register with the state taxing authority to pay and report your business taxes. You can usually register online. In some states, the same agency handles all or most business taxes. In other states, you'll need to register with multiple departments and agencies to cover the taxes your LLC is responsible for. For example, you might need to file with your state's:

• department of revenue (DOR)
• department of labor (DOL)
• department or division of taxation (DOT), or
• other similar department or agency.

If you have LLC members who aren't residents of the state where you're registered and pay taxes, then you might have additional requirements. If you have questions about specific tax and filing requirements for your business, you should check with a business or tax attorney.

Additional Guidance for LLC Tax and Filing Requirements

Fortunately, most states keep LLC reporting to a minimum and often provide online reporting options to help reduce paperwork and mailing costs. Check your secretary of state's and revenue department's websites for more information on your requirements.

Most state filing requirements are fairly straightforward. Many LLC owners are able to submit their reports and pay the required taxes themselves. But your case could be more complicated. Your state might have complex filing requirements or you could have a heavy tax burden that results in multiple returns and calculations. If you need help with your reporting requirements, talk to a business attorney. If you need help determining how your LLC should be taxed or what your tax obligations are, you should talk to a tax expert. Consider working with an accountant, tax adviser, or tax attorney to make sure your legal obligations are met.