Corporations and limited liability companies (LLCs) offer many benefits to business owners. However, in exchange for these benefits, corporations and LLCs must adhere to a myriad of legal requirements. One such requirement deals with annual compliance. Specifically, corporations and LLCs in the state of Florida must submit an annual report each year to maintain active status with the state. In this article, we discuss annual compliance for corporations and LLCs in Florida.
What is an Annual Report?
An annual report is a document that provides a snapshot of a company. This document must be filed with the state yearly even if no changes are being made to the company. Specifically, annual reports may be submitted in Florida between January 1 and May 1, with a company’s initial annual report being due in the calendar year following the company’s formation. Every annual report filed with the state is made available for public inspection on the Florida Division of Corporations’ website.
Components of an Annual Report
Although they may vary, annual reports are typically made up of the following sections:
- Letter to shareholders
- Discussion and analysis
- General business profile or corporate information
- Financing and operating highlights
- Financial statements
Outline of Annual Report
An annual report is typically split into two halves. The first half usually contains the organization’s narrative, which takes the form of letters to the company’s shareholders, discussion and analysis by management, basic corporate information, and highlights outlining how the company worked toward its goals and performed. The second half of an annual report typically removes the narrative components of the first half and presents raw data, which investors are encouraged to review and analyze to form conclusions about the company.
Penalties for Failure to File
As noted above, an annual report must be filed between January 1 and May 1. Companies that fail to file by May 1 face a $400 late penalty. In addition, a company that misses the deadline risks being administratively dissolved. Specifically, a company that doesn’t file by May 1 has until the third Friday of September to file its annual report and pay required late fees or it will be administratively dissolved.
Given the consequences of failing to timely file an annual report, it’s imperative to work with an experienced attorney when preparing your annual report. An experienced corporate and business law attorney will help ensure that your report is complete and all deadlines are met.
Contact a Wellington Corporate and Business Law Attorney
Filing an annual report and meeting other annual compliance requirements can be complicated. Therefore, to ensure that your business meets its annual compliance requirements, you need an experienced corporate and business law attorney on your side. At the Wellington law firm of Gueronniere, P.A., we are here to assist you with your business law needs. When you come to us for assistance, experienced corporate and business law attorney Grace de la Gueronniere will take the steps necessary to ensure that your business meets all annual compliance requirements. Please contact us to arrange an initial consultation with our experienced Wellington attorney.