LLC stands for "limited liability company,” and is a type of business entity that is afforded many protections different from that of a sole proprietorship or partnership. LLCs can purchase real estate, enter into contracts, and even be sued. The business form of an LLC is extremely popular primarily because they provide limited liability that is similar to a corporation but is much easier to form, and is given more freedom.
What is an LLC Annual Report?
Every LLC must file an annual report either each year (or every other year) depending on the state in which the LLC is formed. This report is essentially the LLC updating the state government with information on your LLC. It includes various information that can help keep you up to date with the state of Florida.
Specifically, filing the LLC annual report allows creditors and other interested parties to look up your business address should they look to contact you, but the government also uses this to track your LLC business taxes. In Florida, the LLC annual report costs $138.75. and is paid to the Florida Secretary of State.
Information Included in the Annual Report
When filing your Florida LLC Annual Report it is important to know what information needs to be included. Here is a list of the information that is required in an LLC annual report.
- Company Address: The main address in which your business operates should be included.
- Members and Managers: Since all owners are known as “members” in an LLC, you will need to list all of the members as well as managers involved in the business.
- Purpose of Business: This might include the goods you sell or the services you provide.
- Business ID Numbers: An LLC will have a business ID similar to that of a personal social security number.
- Shares Issued: You should outline all of the owners of the company, and what shares are owned by which individuals. This might include the percentage of earnings, and who these individuals are.
- Registered Agents: Whether you have one or more registered agents, you will need to list these people. You can also hire a company as a registered agent, in which case that is who you would list.
How to File a Florida LLC Annual Report
You can file your LLC's annual report through the Florida Department of Licensing and Regulatory Affairs website. There is also the option to have a printed form sent to your registered agent 90 days before the report is due. It is due on May 1 of each year (in Florida). If you do not pay it, there are consequences.
Where do you file a Florida LLC annual report?
You can find the Annual Report on the Florida Secretary of State Office, through the Florida Corporations, Securities & Commercial Licensing Bureau. You can also have it sent to your LLC’s registered agent.
Benefits of a Registered Agent Service
Registered agents are people or businesses that are nominated by a company to receive and send papers on behalf of your LLC. These services allow you to ensure that your LLC's reports are always filed on time, but also offer a few other benefits.
Avoid late penalties
In Florida, if you do not pay your annual fee, then you can lose the rights to your LLC name. This occurs if you have gone two years without filing an annual report. Registered agent services will help you know when the reports are due and will even submit the filing for you.
If you do not wish to be at a place of business during business hours every day (in order to receive your LLC documents) then a registered agent can do this for you. Using a registered agent can also allow you to form an LLC in other states where you don't already have an established business presence.
Using a registered agent allows you to keep your personal address away from the public record. This keeps your personal information private. Also, in the event that you are sued, your registered agent’s address will be given instead of yours.
What Happens if you Don’t File an Annual Report?
There are serious consequences that can occur when it comes to missing your annual report filing. If the state fee is not paid by May 1, you will be required to pay a late fee of $400. Failure to file your annual report and the late fee, will result in your company being dissolved. This means that your business name will also become available to any other corporation, limited partnership, or limited liability company that wishes to claim it.
If you would like help filing your Florida LLC Annual Report, we can help! Contact us today to schedule a free consultation.