LLC Compliance: Annual Reports and Requirements (2026)

LLC compliance keeps your business in good standing. Learn annual report basics, franchise tax, registered agent rules, and what happens if you skip them.

LLC compliance is the ongoing work of keeping your company in good standing with your state, and it's easy to overlook once the excitement of formation wears off. The core of it is filing an annual report, paying the required fees, and keeping your registered agent current. Skip these steps and your LLC can rack up late fees, lose its good standing, and even get dissolved by the state. Here's what you need to stay on top of.

What LLC Compliance Means

Forming an LLC is a one-time event, but staying compliant is ongoing. Every state expects you to keep certain information current and file periodic reports. The exact requirements vary, but the common threads are an annual report, a registered agent on file, and payment of any state fees or franchise taxes. Staying current keeps your LLC in good standing, which matters when you open a bank account, get a loan, or sign a contract.

Annual Report Basics

The annual report is the document most states require to confirm your LLC's basic information: its name, address, registered agent, and members. Here's what to know:

• What it is: a short filing that updates your LLC's contact and management details.
• When it's due: usually on your LLC's anniversary month or a set date each year, depending on the state.
• What it costs: typically $0-$800, varies by state, with most states charging somewhere in the middle.

Some states call it a biennial report and require it every two years instead. Check your Secretary of State's website for your exact due date and fee.

Franchise Tax vs Annual Report

People often confuse the annual report with franchise tax, and it's easy to see why. Some states charge both. The annual report is an information filing, while franchise tax is a fee for the privilege of doing business in the state, sometimes based on your revenue or assets. A few states, like Delaware and California, are known for franchise taxes that apply even if your LLC earns nothing. Know which one your state charges so you don't miss a payment.

Keep Your Registered Agent Current

Your registered agent is the person or service that receives legal and official mail for your LLC. If your agent resigns or you move, you need to update that information with the state. A lapsed registered agent can trigger default judgments in lawsuits, because legal notices go unanswered, and it's a common reason states flag an LLC as not in good standing. For the details, see our registered agent guide.

Consequences of Non-Compliance

Miss a filing or a fee and the consequences build quickly:

1. You'll owe late fees and penalties on top of the original amount.
2. Your LLC loses good standing, which can freeze bank accounts and block new contracts.
3. After enough time, the state administratively dissolves your LLC.
4. Reinstatement is possible in many states, but you'll pay back fees and penalties to get there.

If you decide the LLC isn't worth keeping, dissolve it properly instead of letting it lapse. Our dissolution guide walks through that process.

Build a Simple Compliance Calendar

The easiest way to stay compliant is to put the dates on a calendar. Note your annual report due date, your franchise tax deadline if your state has one, and your registered agent renewal date. Set reminders a month ahead so you have time to gather information and pay. Also keep your business licenses current, since local permits are part of compliance too. For more on that, see the business license topic page, and for the full picture on annual reports, check the annual report topic page.

Frequently Asked Questions

What is an LLC annual report?

An annual report is a short filing most states require to keep your LLC's information current, including its name, address, registered agent, and members. Some states call it a biennial report and require it every two years. Fees typically range from $0 to $800 depending on the state.

What happens if I don't file my LLC annual report?

You'll face late fees and penalties, and your LLC will lose good standing. If you keep ignoring it, the state can administratively dissolve your LLC. Reinstatement is often possible but requires paying all back fees and penalties, which costs more than filing on time.

Is franchise tax the same as an annual report?

No. An annual report is an information filing that updates your LLC's details. Franchise tax is a fee for the right to do business in a state, sometimes based on revenue or assets. Some states charge both, so check your state's requirements to avoid missing a payment.

Do I need a registered agent every year?

Yes. Your LLC must keep a registered agent on file with the state at all times. If your agent resigns or you change addresses, you must update the state. A lapsed agent can lead to missed legal notices, default judgments, and loss of good standing.

How do I keep my LLC in good standing?

File your annual report on time, pay any franchise taxes or fees, keep your registered agent current, and maintain required business licenses. Put the due dates on a calendar with reminders a month ahead. Staying current protects your liability shield and keeps your LLC ready for banking and contracts.