What Is an Annual Report (and Franchise Tax)?
Plain-language explainer. For each state's requirement, fee, and deadline, see the LLC and Corporation Annual Renewal matrices. Not legal advice.
Short answer
An annual report is a recurring filing that keeps your LLC or corporation active and in good standing with the state. It usually confirms or updates basic information — entity name, address, registered agent, sometimes officers or members — and is accompanied by a state fee.
Annual report vs. franchise tax
These are easy to conflate but distinct. The annual report fee is a flat filing charge tied to the report. A franchise tax is a separate tax some states levy for the privilege of existing there, independent of income — and it can dwarf the report fee. A state may require one, the other, both, or neither. The matrices track them in separate columns for exactly this reason.
Timing and frequency
Frequency varies: annual in most states, biennial in some, and absent in a few. Due dates also differ — a fixed calendar date in some states, the entity's formation anniversary in others. The matrices record the requirement, frequency, and due basis per state.
What happens if you miss it
Missing a report generally triggers a late fee and, if left unresolved, administrative dissolution or revocation of authority. The path back is reinstatement — see the companion explainer. The late fee and dissolution trigger for each state are in the annual-renewal matrices.
Not legal advice
Requirements, fees, and deadlines change and are state-specific. Confirm against the linked state source before relying on this page.
See also: LLC Annual Renewal Rules (matrix) · Administrative dissolution & reinstatement
Frequently asked questions
Is an annual report the same as a tax return?
No. An annual report is an information/registration filing with the state's business office that keeps your entity active. A tax return is filed separately with a tax authority. Some states also levy a franchise tax, which is different again.
What is the difference between an annual report fee and a franchise tax?
The report fee is a flat filing charge. A franchise tax is a separate, often larger, tax some states impose for the privilege of existing as an entity there — for example California's $800 minimum.
Does every state require an annual report?
No. Some require one annually, some every two years, and a few require none (though a franchise tax or other filing may still apply). See the annual-renewal matrices for each state's rule.
What happens if I miss it?
States typically charge a late fee and, after enough time, administratively dissolve or revoke the entity. Catching up — or reinstating — restores good standing.
Go deeper with source-backed research
Explore methodology, datasets, and related matrices cited on this page.