Filing your business annual report is a crucial requirement that ensures your company remains in good standing with the state. However, many business owners make costly mistakes during the process. Avoid these six common errors to ensure a smooth filing experience.
Missing the Filing Deadline
Each state has specific deadlines for filing an annual report. Missing this deadline can result in late fees, penalties, or even administrative dissolution of your business.
To prevent this, mark your calendar with the due date and set reminders well in advance. If your state allows, consider filing early to avoid last-minute issues.
Using Incorrect or Outdated Information
One of the most common mistakes is submitting an annual report with incorrect or outdated information. This includes:
- Incorrect business address
- Changes in ownership or management not reflected
- Outdated registered agent details
Before filing, verify all details to ensure they are current and accurate. Many states allow businesses to update certain information while filing the report, so take advantage of this opportunity.
Filing in the Wrong Jurisdiction
Businesses registered in multiple states must file an annual report in each state where they operate. If you only file in your home state but neglect other jurisdictions where your company is registered, you risk non-compliance and penalties.
For example, if your business operates in Maryland, it’s essential to understand how to file a Maryland annual report correctly and meet the state’s specific requirements. Failing to do so could lead to fines or suspension of your business’s ability to operate.
Forgetting to Pay the Required Fees
Most states require a filing fee along with the annual report. Forgetting to include this payment or submitting the incorrect amount can cause processing delays or rejection of your report.
Check your state’s filing guidelines to confirm the correct fee amount and accepted payment methods. If filing online, ensure your payment is successfully processed before considering the report complete.
Assuming Your Accountant or Registered Agent Will Handle It
While many business owners rely on an accountant or a registered agent for compliance filings, assuming they will automatically file your annual report can lead to missed deadlines.
If you use a third party for filings, confirm in advance whether they will handle the submission. If you are responsible for filing, make sure you allocate enough time to complete the process correctly.
Ignoring Confirmation of Submission
Filing your annual report does not guarantee immediate approval. Some states require review and processing time before finalizing the submission. Business owners often assume the process is complete without checking for confirmation.
After filing, always verify that your report has been successfully processed. Many states provide confirmation emails or allow businesses to check their status online. If you do not receive confirmation within the expected timeframe, follow up to ensure your report is properly recorded.
Take Away
Filing an annual report may seem straightforward, but errors can lead to penalties, fees, or loss of good standing. But now that you understand the above common mistakes, you can keep your business compliant and prevent unnecessary complications. Stay organized, double-check your details, and ensure timely filing to keep your business running smoothly.
