(Regardless of Your Size)

In November of 2022, a new law was passed that affects all LLC owners.

Beginning in January 2024, companies will be required to file their financial report on an annual basis, a significant change from the previous 10-year requirement. 

What do you need to know? I’ll tell you.

What do I have to file?

An annual report.

What is an annual report? I mean, I know what an annual report is, but what must this report contain

• Business name
• Jurisdiction of formation
• Registered office address
• Name of at least one director, member, or partner
• Names and titles of the principal officers
• Address of the principal office
• Entity number issued by the DOS  When do I have to file?

There is always a fee; will there be fees for filing annual reports?

Good news: if you are a non-profit, there is no fee – but, you have to file first.

Will I get any notice from the State?

Why, yes, you will. You can expect to receive notice from the Department of State two months in advance of your company’s deadline for filing. These notices will be addressed to the registered business office on file with the Department of State, so make sure that your company’s information is up to date.

What happens if I do not file these annual reports? (Not that I would ever dream of being out of compliance, but asking for a friend.)

If you fail to file your reports annually and on time, it could result in an administrative termination of your business and the loss of your right to use its name.

Is there any kind of grace period (that is of course aside from the 9-month heads up we are giving you

Again, the answer is yes. Because the new deadlines present such a big change, the Department is allowing for a transition period, and no administrative terminations will take place until 2027, but don’t wait until you are non-compliant. Business Filing Services are accessible at https://file.dos.pa.gov.

As always, if we can assist you with this or any other business requirement, email Christina Reger at creger@loutel.com or Jacqueline Hopkins at hopkins@loutel.com or call Loutel at (215) 464-6007.