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Annual reports and ongoing compliance

Forming your LLC was step 1. To keep the LLC in "good standing" with the state, you have ongoing obligations.

Annual reports and ongoing compliance

Forming your LLC was step 1. To keep the LLC in "good standing" with the state, you have ongoing obligations.

What's required (varies by state)

Almost every state requires at least one of:

Annual report

A short form (often online) confirming the LLC's basic info — members, address, registered agent. Filing fee ranges from $0 (Ohio, Texas under $1.23M revenue) to $500+ (Massachusetts).

Due date varies by state: - Anniversary of formation (Wyoming, Delaware) - Specific calendar month (April for Texas, June for California) - Calendar year (most states require it by March 31)

Biennial report

Same as annual but filed every 2 years. New York, California's Statement of Information, and a handful of others use this cycle.

Franchise tax

A separate state-level tax on the privilege of operating in the state. California is famous for its $800/year minimum, even for a $0-revenue LLC. Texas has a similar tax that kicks in over $1.23M revenue.

What FormationHub does automatically

For every customer:

  • Reminders: we email you 60 days, 30 days, and 7 days before each annual filing deadline

  • Portal alerts: a banner appears in your member portal as deadlines approach

  • Calendar feed: subscribe to an .ics feed of your compliance deadlines (under Billing → Compliance Calendar)

For Registered Agent customers, we also: - Forward any state correspondence (reminder letters, dunning notices) within 1 business day

Compliance services we offer

If you don't want to handle compliance yourself, we have add-on services:

Annual report filing — $XX/year (varies by state)

  • We prepare and file the annual report on your behalf

  • State fee passed through at cost

  • Confirmation receipt uploaded to your portal

Franchise tax filing — $XX/year (state-dependent)

  • We prepare and file (excluding IRS-related taxes — that's your CPA)

  • Some states (Delaware, California) we handle; others (Tennessee, Mississippi) we don't because of complexity

  • See the per-state matrix in your portal for what we cover

Full compliance bundle

  • All annual reports + franchise tax + BOI updates + state-specific filings

  • Best for owners who want zero compliance overhead

  • Pricing depends on state and entity type

What happens if I miss a deadline?

Sequence of events for a missed annual report:

Day 0 (deadline)

  • State updates your status from "Good Standing" to "Delinquent" or "Not in Good Standing"

  • Small late fee (usually $25-100)

Day 30-60

  • More-aggressive late fee schedule kicks in (some states charge $25/month)

  • Your LLC's name is added to a public delinquent-business list

Day 90+

  • Cumulative late fees may exceed the original filing fee

  • Some states (TX, FL, CA) suspend your right to do business — contracts you sign may be voidable

  • You can be sued individually for business debts because the LLC's liability shield is in question

Day 180+ (varies by state)

  • Administrative dissolution: the state formally dissolves your LLC

  • You lose the right to use the name

  • Reinstatement requires back-paying ALL fees + a reinstatement fee, sometimes $500+ in penalties

  • During the dissolution period, you have NO liability protection

Specific states with notorious gotchas

California

  • $800/year franchise tax minimum, due on the 15th day of the 4th month after fiscal year end (April 15 for calendar-year LLCs)

  • Statement of Information (biennial, $20) — first one due within 90 days of formation

  • Late filing on the Statement of Info: $250 penalty

  • Late franchise tax: 5% per month, max 25%

New York

  • Publication requirement — within 120 days of formation, you must publish notice of formation in 2 newspapers in your county for 6 consecutive weeks

  • Cost varies wildly: ~$300 in upstate NY, $1500+ in NYC

  • Then file a Certificate of Publication with the state ($50)

  • We can handle the publication arrangement; pricing depends on county

Delaware

  • $300/year franchise tax for LLCs, due June 1

  • Annual report not required (corp-only)

  • Late franchise tax: $200 penalty + 1.5%/month interest

Texas

  • No franchise tax if revenue under $1.23M

  • BUT must file a "Public Information Report" annually with the Comptroller — $0 fee, but required

  • Failure to file: revoked right to transact business in Texas

How to know what your state requires

Sign in at https://www.formationhub.com/member, go to Compliance Calendar — we show every requirement specific to your state and formation date.

You can also check the Secretary of State's website for your state directly. Look for "Annual filing requirements" or "LLC ongoing compliance."

Common questions

"What if I never file an annual report?"

Your LLC gets administratively dissolved. You can usually reinstate within 1-3 years of dissolution by paying back fees + penalties, but it's expensive.

"If the LLC has $0 revenue, do I still file?"

Almost always yes. Annual reports are about the LLC's existence, not its revenue.

"Can I file annual reports myself?"

Yes, every state allows direct filing. We charge a service fee for handling it on your behalf — if you'd rather DIY, that's totally fine. We'll still send you reminders.

"What about BOI? Is that an annual thing?"

The initial BOI report is one-time (per LLC). But you must file an UPDATE within 30 days of any change to beneficial ownership info (new member, address change, change of legal name). See BOI article for details.

Next steps

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