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Do You Have to Renew Your LLC Every Year?

Written by:

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by:

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Do You Have to Renew Your LLC Every Year?

Do You Have to Renew Your LLC Every Year?

If you’re starting a business, you may be considering forming a limited liability company (LLC). If you do, in most states you need to file an annual report and possibly other documents for your LLC and pay a fee every year or every two years.

Renewing Your LLC

Every year, you will be required to renew your LLC. The renewal process usually involves filing a form with the state and paying a fee.

Most states require an annual report, but it may be called something else in your state, such as an annual certificate, a biennial report, a periodic report, or a franchise tax report. Some states require that you also file a statement of information, which is just a form that lets the state know you’re still doing business.

Fees and requirements vary by state. Ohio, for example, does not require LLCs to file annual reports. California, on the other hand, requires LLCs to file a Statement of Information every two years and pay an annual tax of $800. You should check with your state for its LLC renewal requirements.

Renewal fees by state range from $50 to $750, and the amount of paperwork you need to file also varies by state.

Whether your LLC has profits or losses, you still need to comply with the renewal requirements of your state. If you do not do so, and do not do it on time, the state can dissolve your LLC. Most states allow you to do your annual filings online.

You need to be sure that you know the deadlines for filing your annual report and other documentation. Some states require that all LLCs file on a specific date, while others require it by the anniversary of your LLC formation.

In Closing

If you fail to follow your state’s rules regarding annual filings, your LLC may be dissolved by the state, so check with your secretary of state for requirements. If you register as a foreign LLC in other states, you must follow the requirements of all states where you are registered. Make sure you track deadlines for filings and pay all fees and file all reports on time.

If you’re in doubt about your filing requirements, check with a business attorney for more guidance.