What Are the Annual Compliance Requirements for an LLC? A Complete Guide by doola

When you form a Limited Liability Company (LLC), it’s easy to think the challenging part is over once your business is up and running.

But staying compliant is just as crucial as the initial formation itself.

If you don’t meet your annual LLC compliance requirements, you could face fines, lose your good standing, or even have your LLC dissolved.

To help you avoid these pitfalls, the experts at doola have put together this comprehensive guide outlining the key compliance tasks LLC owners need to stay on top of.

We’ll walk you through the annual reports, taxes, renewals, and more—all while discussing how doola can simplify the entire process and ensure you’re always compliant.

Let’s get started.

Why Compliance Matters for Your LLC

LLCs are favored for their simplicity and liability protection, but that doesn’t mean they’re maintenance-free.

Staying compliant ensures your business remains in good standing, meaning your LLC continues to provide the legal and tax protections it was designed for.

Neglecting these requirements can result in hefty penalties, loss of limited liability, and even administrative dissolution by your state.

7 Annual Compliance Requirements for LLCs

Every LLC has ongoing legal responsibilities that differ slightly depending on the state of formation.

Here’s a breakdown of the most common compliance requirements:

1. LLC Annual Report Filing

An LLC annual report is a simple business filing that most states mandate to keep your business in good standing.

While it’s called an “annual” report because it’s typically due once a year, some states have different requirements—like biennial reports, which are due every two years.

Pennsylvania takes it to the next level—requiring a report only once every 10 years!

Note: An LLC’s annual report, is not a financial report. Unlike the detailed statements corporations send to shareholders, this report is purely for compliance.

What information is covered in annual reports?

Annual reporting typically includes financial data, recent activities, and details about the owners.

If your state mandates that businesses submit an LLC annual report, they may require additional information, including the names and addresses of managers.

Depending on your state’s regulations, you may need to provide the following details:

• Legal name of your company

• Any fictitious name your business operates under (commonly known as a DBA)

• Purpose of your business

• The primary business office address in your state

• The registered office address

• Your registered agent’s name and contact information

• Names and business addresses of managers and shareholders/members

• A list of authorized signatories

• Essential identification numbers, such as your state entity number and Employer Identification Number (EIN)

Filing deadlines:

Deadlines vary by state, so you need to check your specific state’s requirements.

What if you miss the deadline or don’t file your report?

Failing to file an annual report can trigger serious repercussions, including the potential dissolution of your corporation.

The penalties for late filing vary by state, often starting with a monetary fine that can quickly add up.

If you continue to miss deadlines or remain non-compliant, your business could lose its good standing with the state.

Without a certificate of good standing, you may face restrictions on financing options from lenders, and in severe cases, your corporation might be dissolved altogether.

✅ How doola Helps

Filing your annual report can feel like a bureaucratic headache, but it doesn’t have to be.

doola’s compliance services make sure you never miss a deadline, handling the entire process for you.

We notify you when your report is due, help gather the necessary information, and file it on your behalf—keeping your LLC in good standing.

2. Franchise Taxes and Fees

Even if your LLC doesn’t technically operate as a franchise, some states require LLCs to pay an annual franchise tax or similar fees.

This isn’t a tax on your income—it’s essentially:

A fee for the privilege of doing business in the state.

How are franchise taxes and fees calculated?

In many states, franchise taxes are based on your LLC’s income, net worth, or even the number of shares or members.

Filing deadlines:

Franchise taxes are generally due annually or semi-annually, depending on your state.

Example: In California, LLCs must pay an annual minimum franchise tax of $800. Even if your LLC doesn’t make a profit, you’re still responsible for this tax.

✅ How doola helps

Staying on top of franchise tax payments is crucial to maintaining your LLC’s good standing.

doola’s tax experts can help you calculate and pay these fees accurately, ensuring that your LLC meets all state tax obligations.

3. Maintaining a Registered Agent

Every LLC is required to designate a Registered Agent—someone responsible for receiving legal documents on behalf of the business.

This person (or entity) must have a physical address in the state where your LLC is registered and be available during regular business hours.

Does your business need a registered agent?

Short answer: Yes—unless you’re running a sole proprietorship or general partnership.

For most businesses, a registered agent is like your business’s personal concierge for legal and government paperwork.

They’re the official go-between, handling all those crucial (and often time-sensitive) documents.

Registered agents ensure you never miss a beat when it comes to legal notices, tax documents, or government correspondence.

They must have a real physical address and be available during regular business hours to receive and forward the essentials.

Beyond just receiving mail, a registered agent keeps you on the good side of state laws by helping you stay compliant, reminding you about filing deadlines, and forwarding key documents.

Annual requirements for registered agents

Some states require you to confirm your registered agent’s information annually in your LLC’s report.

✅ How doola Helps

doola offers registered agent services for all 50 states.

We handle legal notices on your behalf and ensure your information stays current. We also keep you informed of any important documents we receive.

Get a Registered Agent for your business today.

4. Operating Agreement Updates

Though not always required by law, your LLC’s Operating Agreement plays a critical role in how your business runs.

It outlines:

• The management structure

• Responsibilities of members

• Other key details about the business

Note: As your LLC grows or changes, you’ll likely need to update this document.

When should you update your agreements?

Your operating agreement should be updated to reflect changes such as:

• Onboarding new members

• Change in ownership structure

• Updating Registered Agent details

• Altering legal status or entity type

• Major operational changes

• Dissolving your business

There may be other times you’re required to update your business details. Look up your state’s agency websites for specific guidelines and requirements.

Compliance implications:

Some states require that certain parts of your Operating Agreement be disclosed or filed with annual reports.

✅ How doola helps

doola’s legal experts can help ensure that any updates are made correctly and in compliance with state laws, protecting your LLC from internal disputes and other legal issues.

Get your operating agreements drafted by an expert today.

5. Licenses and Permits

Depending on the industry you’re in, your LLC might be subject to various local, state, or federal license and permit requirements. These aren’t always a one-and-done deal—many business licenses need to be renewed annually.

Business license requirements can vary widely based on:

• The products/services you sell

• Your industry and location

• Your professional qualifications

For instance, you might need a state or federal tax ID, seller’s permits, professional memberships, certification renewals, or specific permits like building, occupational, or health permits, depending on your business type.

Example:

If you run a food business, you may need a health department permit. If your LLC offers professional services like accounting or legal advice, you’ll need professional licenses.

State Requirements

In addition to federal and specialized business licenses, certain states have their own specific requirements:

• Delaware: You need to maintain an active business license to operate.

• Texas: The Business Permit Office offers resources and guidance on necessary permits.

• California: Offers a research tool for the licenses and permits you require.

• Florida: Provides details via Department of Business & Professional Regulation, the Department of Agriculture and Consumer Services, and the State Agency Directory.

Renewal timelines:

Renewal periods vary depending on the type of license or permit and where your business operates.

✅ How doola helps:

Keeping track of different renewal dates and requirements can get confusing, especially as your business grows.

doola’s total compliance package tracks all your licensing requirements in one place, giving you peace of mind that you’re always in compliance.

6. State-Specific Compliance

Each state has its own unique compliance rules. For instance, some states require an LLC to file Biennial Reports instead of annual ones.

Others have specific rules for LLCs in regulated industries like healthcare or construction.

State examples:

1. New York

Requires LLCs to publish a notice of formation in local newspapers, a requirement not found in most other states.

2. Nevada

Has higher franchise taxes, but no state income tax, making compliance less burdensome in terms of taxation but expensive in fees.

✅ How doola Helps:

Navigating the varying state laws can be tricky, especially if your business operates in multiple states.

doola’s team of compliance experts can guide you through state-specific rules and ensure your LLC meets all local requirements, no matter where you operate.

7. LLC Taxes: Federal, State, and Local

LLCs are unique in that they offer flexible tax options. By default, LLCs are taxed as pass-through entities, meaning the profits and losses are reported on the owner’s personal tax return.

However, LLCs can also elect to be taxed as corporations.

Federal Taxes

LLCs must file Form 1065 if they’re treated as partnerships, or Form 1120 if they opt to be taxed as a corporation.

State and local taxes:

Some states have additional income tax filings for LLCs, and local jurisdictions may have sales tax or business taxes as well.

✅ How doola Helps:

doola’s bookkeeping and compliance services ensure that you file your LLC’s federal, state, and local taxes accurately and on time.

We provide year-round support to help you stay ahead of deadlines and maximize your tax benefits.

Book a demo today.

LLC Compliance Checklist: What You Need to Do Every Year

Let’s break down the annual compliance must-dos into a handy list of tasks for you to tick off every year. So here’s a quick compliance checklist for keeping your LLC in good standing:

• File your LLC Annual Report (check your state’s specific deadlines).

• Pay your Franchise Taxes or State Fees (even if your LLC didn’t make a profit).

• Renew any Business Licenses or Permits relevant to your industry.

• Maintain or Update your Registered Agent Information.

• Keep your Operating Agreement Up to Date.

• File LLC Taxes (Federal, State, and Local if applicable).

Bonus tip: Set calendar reminders for each of these compliance tasks to ensure you never miss a deadline.

Time to Level Up with doola

Running a business is already a tough ride, so the last thing you need is compliance throwing a wrench in your plans.

doola’s got your back with a full suite of LLC compliance services, from filing annual reports to managing registered agent duties, all geared to take the stress out of your legal to-do list.

With doola, you’re not just ticking boxes; you’re laying down the groundwork for long-term success, minus the headache of missed deadlines or surprise penalties.

Schedule a free consultation with doola, and we’ll handle the nitty-gritty—while you grow your business and run the show like the boss you are!

FAQs

Do I need to file an annual report for my LLC in Florida?

In Florida, all LLCs, corporations, limited partnerships, and limited liability limited partnerships must submit their annual reports by May 1.

If you fail to file on time, a hefty late fee of $400 will be charged. Companies that remain non-compliant past the third Friday in September risk dissolution.

Filing can be completed through the SunBiz website, using the 12-digit document number issued when your LLC was formed in Florida. This number serves as your ID in the SunBiz database.

How do I file an annual report for my LLC in North Dakota?

In North Dakota, LLC owners must file their annual reports through either the mail or the FirstStop service, a platform designed to streamline business and licensing tasks for the Secretary of State.

You can complete your filing online with a credit card or send a check or money order (payable to the “Secretary of State”) via mail.

Be sure to submit your report, along with the required $50 fee, by November 15. If you miss the deadline, the fee increases to $100.

Do I have to file an annual report for my LLC in Mississippi?

Yes, all limited liability companies in Mississippi are required to file an annual report with the Secretary of State.

The filing period runs from January 1 to April 15, and all submissions must be completed online. Domestic LLCs can file at no charge, while corporations must pay a $25 filing fee.

Do I need to file an annual report for my LLC in New Jersey?

Yes, New Jersey requires LLCs to file an annual report to maintain compliance. This report primarily verifies that your registered agent and address are current.

Along with your submission, you must include a filing fee of $75.

Make sure to file your report by the last day of the month in which your business was formed. Failure to file for two consecutive years could result in the voiding of your business charter and the loss of your ability to operate in New Jersey.

How do I file an annual report for my LLC in Wisconsin?

Wisconsin makes the process straightforward by sending annual report forms to your LLC’s registered agent ahead of the deadline.

You can file your report either by mail or online through the Department of Financial Institutions (DFI). Note that foreign LLCs must file their reports by mail.