Categories: Blog

What Happens If I Do Not File My Annual Report?

An Annual Report is generally sent to the shareholders of the business and documents the activities and financial status of your business for the previous fiscal year. Filing this document shows the government that your business is still active.

Failing to file your annual report, in most states, will leave the state having to show on their site that your company was administratively dissolved. This is not a crisis; however, it is something that needs to be taken care of.

For example, if you are trying to open a new bank account – most banks will not open a new account for a business that has been administratively dissolved.

To file the missing annual report requires the original filing fee which is usually $100-$200. In addition to late fees that can possibly double or triple the cost of filing. Some states will allow you to update the annual report online, saving everyone time and money. However, it may not be available when the company has been administratively dissolved.

Many states will not take a company check for an already dissolved company, they may require a money order or a cashier’s check.

All in all, your best solution would be to file your annual report on time to avoid any late fees.

 

02/03/2020
By: Gary Grottke, CPA, Quality Back Office

hollie bourne

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