Legal entities have several filing and reporting deadlines that must be met throughout the year. Because filing and reporting due dates and requirements vary from state to state, managing the timelines for multiple entities can be challenging. Your business will need to comply with federal, state, and local tax obligations in order to stay in good legal standing, avoid wasting time and accruing costly penalties, and for peace of mind.
Below are 3 types of filing and reporting requirements that must be fulfilled across all legal entities.
1) Annual Reports
An annual report is the disclosure of a company’s operational and financial activities throughout the year. The purpose of the annual report is to give investors and government bodies the information to locate and communicate with businesses that have formed or have been doing business in the state.
An annual report typically includes:
- The name of your business entity
- Business registration number or business identification number
- The state in which the business was formed
- The current registered business address
- A list of officers and directors
- Description of all business activities conducted within the state during the fiscal year
- The name and contact information for the registered agent
Alongside these standard requirements, there may be other required information depending on the state in which you file. Once the state sends notices of annual report filings to your registered agent, the report must be completed and submitted to the Secretary of State Division of Corporations.
Why should you prioritize an annual report?
If you don’t file your annual report on time or accurately, you could endanger your company’s good standing and ability to do business. Failure to file by a state’s deadline may also result in costly late fees and penalties.
2) Federal Tax Returns
A federal tax return is a tax return that must be sent to the IRS each year on the 15th of April.
There are five general types of business taxes:
- Income Tax
- Estimated Taxes
- Self-Employment Tax
- Employment Taxes
- Excise Tax
The type of business you operate determines what taxes you must pay and how you pay them. Click here to learn about the different types of business taxes.
Why should you prioritize federal tax returns?
Federal tax returns are important for businesses because they show the government how much money you earned and how much money you’ve already paid in taxes for the year. If you don’t file your federal tax returns and pay on time, you risk added interest and penalties. The failure to file fee is 5% of unpaid taxes per month and late payments incur 0.5%, both capped at 25%.
3) State Tax Returns
State and local tax returns must be filed in addition to your federal tax returns. Like federal tax returns, your state income tax obligations are determined by your business structure. For example, corporations are taxed separately from the owners, while sole proprietors report their personal and business income taxes using the same form.
Why should you prioritize state tax returns?
If you miss the state tax filing deadline, you are subject to penalties, interest, and other fees in addition to the amount of taxes due.
How EntityKeeper Can Help
Corporate Services
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.
Technology
EntityKeeper provides powerful entity management software, a powerful tool that can eliminate error-prone, time-consuming manual tasks that prevent teams from focusing on other valuable, revenue-generating work. Entity management software gives you the tools to monitor and track important deadlines. Plus, automated alerts and email notifications notify you of upcoming due dates so you never miss a due date.
