Just like special occasions that occur once a year, such as birthdays or anniversaries, your business's annual report also comes around on an annual basis. However, what if I told you that there is another reporting requirement that only surfaces once every two years? Enter the biennial statement, a key filing that serves a similar purpose to the annual report but with a longer timeframe. In this blog post, we'll explore the concept of a biennial statement, its significance, and what it entails for your business.
While nearly every state mandates some form of ongoing reporting for businesses, the biennial statement is specific to certain states. For Limited Liability Companies (LLCs), this filing requirement is applicable in six states and Washington DC. The key distinction is that instead of an annual deadline, you only need to meet this obligation every two years.
Similar to the annual report, the biennial statement is submitted to the same department that approved your business formation, typically the secretary of state. Its purpose is to demonstrate that your business is active and to maintain good standing. The biennial statement should provide essential information such as the management structure, names and addresses of owners and partners, details about registered agents, share structures, the primary purposes of the business, and any significant changes made during the previous two years.
Failing to file your biennial statement regularly and on time can lead to various consequences, including fees, tax penalties, and potential repercussions for your business. It is crucial to understand the reporting deadlines and requirements for each state in which you conduct business.
Given that reporting deadlines and requirements vary by state, it is vital to remain informed and compliant. Check with each state in which you operate to determine the specific due dates and filing guidelines. Staying proactive in meeting your biennial statement obligations will help you avoid unnecessary penalties and ensure the continued good standing of your business.
While the annual report is a familiar responsibility for businesses, the biennial statement offers a longer reporting interval, occurring once every two years. It serves as a critical filing to demonstrate the active status of your business and maintain good standing. Understanding the requirements and deadlines for biennial statements in the states where you operate is essential to fulfill your obligations and avoid potential penalties. By staying informed and meeting your filing requirements promptly, you can ensure the smooth functioning and compliance of your business.