Filing an Annual Report is one of the most intimidating aspects of being a business owner. Many business owners lose their formal corporate structure because they fail to file their annual reports. Annual reports are required by the State of Florida. The State has been so generous as to give business owners from the months of February to May to file their annual reports. It may seem like you have time, but those months fly by QUICK! I have compiled a list of misconceptions most business owners have about their annual reports.
I did not make any money last year, so why do I have to file an Annual Report?
Good news!! There is no math required when filing your annual report. You don’t even need to provide them with any of your financial information. The only information that you need to provide is: (1) an updated address (if any), (2) a change in registered agent (3) your EIN and (4) your annual filing fee.
If I miss filing the annual report, it won’t hurt my business.
Actually…. yes, it will. If you fail to file your annual report then you will be assessed a fine greater than the actual annual filing fee. In fact, the fine is $400 for for-profit corporations. If your company fails to file the annual report then it will be administratively dissolved after September 1st. When a company gets administratively dissolved, that means it becomes either a Sole Proprietor for individually owned companies or a general partnership for companies owned by multiple people. Once your company loses the protection of an LLC or a Corporation, then you ultimately expose yourself to unlimited liability to creditors or anyone wanting to sue you. Many people think about liability in term of negligence. This is not always the case. Many people are sued by simple credit card creditors and other people looking for you to pay your debt.
If you have exposed yourself to unlimited liability by failing to file an annual report then that means the creditors can attack your personal assets. This includes your car, bank account, your wages, or even your home.
I don’t have any updates to give the State so I do not need to file the annual report.
Once again, this is nothing further from the truth. Simply because you do not have any updates to provide the State of Florida, you still need to pay your annual fees. While the State of Florida cares about the changes that you have made to your company, they are most concerned with the annual fee to maintain your status as a corporation. The State simply gives you the opportunity from the months of February to May to notify them of any recent changes to your corporation.
We understand that the Annual Report is a dreaded task each year. Our office provides that service to you at a very low cost. If you would like to subscribe to our low cost annual report plan then email info@stokeslegalcounsel.com.
