LLC States Have No Annual Report
Setting up a Limited Liability Company (LLC) involves a host of ongoing filing obligations, such as annual or biennial reports. These reports are usually used to verify the basic details of the LLC, including the address, registered agent, and ownership details. However, not every state imposes this requirement. In fact, a few states do not require LLCs to file annual or biennial reports at all.
These states are Arizona, New Mexico, and Missouri.
Arizona
Arizona does not require LLCs to file an annual or biennial report to the Corporation Commission. Once your LLC is created and approved, there are no recurring reports due to keep the company active. However, Arizona LLCs have other obligations such as maintaining a registered agent and paying applicable business or sales taxes, if operating in the state.
Missouri
Features like no annual or biennial report filing required make Missouri an attractive state to form an LLC. However, business owners should take care of other compliance obligations like to hold valid and up-to-date business registered licenses and industry-specific permits.
New Mexico
New Mexico also does not require LLCs to submit annual or biennial reports. LLCs are not entirely free of obligations, however. If you have a New Mexico LLC that sells taxable goods and services, you will probably have to register for pay-gross receipts tax, a tax similar to sales tax.
No Reports Does Not Mean No Taxes
While these states don’t have annual reporting requirements, LLCs are still likely to have other obligations, including:
- Filing a Federal tax return
- Paying state income or franchise taxes (depending on tax classification)
- Obtaining local business licenses or tax permits
- Filing BOI (Beneficial Ownership Information) reports under the Corporate Transparency Act
Bottom Line
Operating in a state that does not require annual reports for submissions may reduce the LLC’s compliance burden, but the remaining obligations still require attention. For those on the fence, obtaining a business tax or legal consultation will certainly clarify the LLC’s filing obligations.
Our seasoned team stands ready to provide professional aid. Reach out to Dimov Tax today for financial clarity.
