Legal entity management is a crucial aspect of running a business, ensuring that your company remains compliant with state and federal regulations. The pressure is high when managing compliance and filing deadlines for multiple entities. Legal entities have different filing deadlines depending on the type of entity. Further, each state has specific due dates and requirements that can cause additional complications when juggling several deadlines. Firms with multiple entities can easily overlook an upcoming deadline and be charged as much as 25% of unpaid taxes as a late fee. It is essential to stay up-to-date with the latest legal entity filing requirements to avoid such penalties or legal issues.
What is Legal Entity Management?
Legal entity management refers to the process of managing the legal structure of a business. It includes the formation, maintenance, and dissolution of legal entities such as corporations, LLCs, partnerships, and sole proprietorships. Legal entity management also involves ensuring that your business complies with all state and federal regulations.
Filing Deadlines for Legal Entities
The filing deadlines for legal entities vary depending on the type of business and the state where it is located. However, there are some common deadlines that all businesses should be aware of to avoid any legal issues.
Annual Reports
Most states require businesses to file an annual report with the Secretary of State’s office. This report provides information about the business’s management, ownership, and financial status. The filing deadline for the annual report varies by state and can range from a few months to a year after the business’s formation date.
Business License Renewal
If your business operates in a state or local jurisdiction that requires a business license, you must renew it annually. The renewal deadline can vary by jurisdiction, and some require businesses to renew their licenses on their anniversary date.
Tax Returns
Every business must file a tax return with the Internal Revenue Service (IRS) annually. The filing deadline for most businesses is March 15th or April 15th, depending on the type of entity. It is essential to consult with a tax professional to ensure that your business is filing the correct tax forms and meeting all tax obligations.
Employer Identification Number (EIN)
If your business has employees, you must obtain an EIN from the IRS. The deadline for obtaining an EIN is typically the same as the tax return filing deadline.
Consequences of Missed Filing Deadlines
Missing filing deadlines can result in penalties and legal issues for your business. The penalties vary by jurisdiction but can include fines, interest, and even the loss of your business license or legal entity status. Additionally, missed filing deadlines can harm your business’s reputation and hinder its ability to secure future financing or partnerships.
3 Ways Entity Management Software Prevents Missed Deadlines
Entity management software, like EntityKeeper, is packed with features and tools to help you avoid missed deadlines. Below, we highlight three ways that software can help you file all of your reports on time.
Benefit #1: Track compliance due dates in one place.
An entity management software, like EntityKeeper, helps you track every detail associated with your entities, including banking information, registered agents, and filing deadlines. Entity management software gives you the tools to monitor and track compliance deadlines so that you never miss a due date.
Benefit #2: Automate alerts and notifications for upcoming deadlines.
Gone are the days when marking the date on your wall calendar is sufficient for managing upcoming deadlines (especially for teams who manage multiple entities). With entity management software, you can set automated alerts and notifications to remind you of approaching due dates. Alerts like these can help you stay up-to-date on your reports and ensure that you file on time.
Benefit #3: Centralize data and document storage for easy retrieval.
When it’s time to file, scattered or siloed documents can create inefficiencies that slow you down. In fact, office professionals spend 50% of their time searching for information. Additionally, you may not even know which files are the most current.
Entity management software lets you compile your documents and store them in a centralized, cloud-based location. With software, you can easily locate and reference your documents now and in the future and have confidence that you have the most recent version.
Legal entity management and filing deadlines are critical to running a successful business. Staying up-to-date with filing deadlines and complying with state and federal regulations is essential for avoiding penalties and legal issues. If you are unsure about your business’s legal requirements or filing deadlines, it is always best to consult with a legal or tax professional. By staying compliant, you can focus on growing your business and achieving your goals.
Get Started with EntityKeeper
EntityKeeper provides filing services including formation, incorporation, mergers, and annual reports. With a corporate service provider like EntityKeeper, you avoid costly and time-consuming manual tasks. Plus, you ensure that your reports are accurately completed every time. Our corporate services streamline your reporting processes to ensure you never miss a deadline and remain compliant across all of your legal entities.
Ready to learn more about how EntityKeeper can address your entity management challenges and help you comply with your state’s annual report laws? Get started with EntityKeeper today or request a demo to see the solution in action.
