Annual Report

What is an annual report?

An annual report is a document that provides detailed information about a company’s financial performance and activities during the prior fiscal year. Companies file annual reports for a few reasons. In many instances, businesses are required to file annual reports with the Secretary of State’s office, however, this requirement can vary by state and entity type. In some states, annual reports are filed biennially—or are not required at all. They may also go by different names, such as statement of information, periodic report, or annual renewal.

Companies also produce annual reports to help attract new investors, since they provide insight into the company’s operations and its financial position. This information can also be valuable to current stakeholders, employees, creditors, members of the community, and anyone else who has an interest in the company’s activities and financial performance.

Annual report FAQs

What’s included in an annual report?

Each state has different requirements for what must be included in an annual report. But generally speaking, when you file an annual report, you’ll include the following:

• The name of your company, its entity type, and the name of its registered agent
• The name and address of the company, as well as the names and addresses of any officers or directors
• A report summarizing the company’s activities, achievements, financial position, and current and future projects
• Essential documents that provide an overview of the company's financial position, which may include balance sheet summaries, cash flow statements, and income statements, among others

What types of companies are required to file annual reports?

Most companies, including small and large corporations, limited liability companies (LLCs), non-profit corporations, and partnerships are required to file an annual report every year, though the exact requirements can vary from state to state. 

Is an annual report the same as a cash flow statement?

A cash flow statement is one of many financial statements companies use to help measure their financial performance, but it isn’t the same as an annual report. Cash flow statements tend to be used internally to help a company assess how much money is coming in versus how much money it’s spending on essential company operations. 

Annual reports, on the other hand, are used externally to provide an overall picture of the company’s performance to outsiders. Cash flow statements are one of the financial statements a business might include within its annual report to demonstrate its overall financial strength.

What happens if you don't file an annual report for LLC?

Failing to file an annual report in a state where you are required to do so can result in a number of consequences. Depending on the state where you operate, you could be required to pay a penalty. You may also risk your business’s good standing with the state or even lose your corporation designation (if applicable) and any tax advantages that come with it.