A NOTE FROM LETICIA
Registered Agent & Compliance Manager
Many of our clients are familiar with our nationwide registered agent services, but perhaps a lesser-known yet equally beneficial service is our Managed Annual Report Service (MARS). Before I delve into the specifics of our fully-managed annual report service, let’s talk about annual reports in general.
Most states require businesses, mostly corporations and LLCs, to file an annual report with the Secretary of State or equivalent agency. Deadlines for filing annual reports vary from state to state. In recent years, many states have stopped sending out annual report due date reminders. As a result, the responsibility falls to business owners who must track when each annual report is due. Without a reminder system, it’s easy to overlook an annual report due date, especially if you operate businesses in various states. Failure to file your annual report on time can lead to severe financial consequences and the loss of your business’s good standing status with the state.
Our Managed Annual Report Services can help centralize your annual reports and ensure your company stays compliant with filing requirements in every state where it does business. The service includes status checks, form preparation, completion of the filing, advancement of state filing fees on your behalf, and filing confirmation. Whether your state refers to it as an annual report, biennial report, annual list, or statement, MARS has this state-level compliance requirement covered! To learn more, feel free to reach out to our specialists at paracorp@myparacorp.com.
Industry News
Alabama: Annual Report Requirement for Corporations Repealed
In early 2024, the Alabama Act 2022-252 transferred the responsibility of annual report filings from the Department of Revenue to the Secretary of State’s office. This change caused confusion and led to numerous complaints from business owners in the state. To address the issue and reduce bureaucratic hurdles for Alabama businesses, House Bill 230 was proposed. This bill aimed to eliminate the requirement for corporations to file an annual report with the Secretary of State and remove any mention of an annual report in the Code of Alabama 1975. The legislation received full approval from the Alabama State Senate and the Alabama House of Representatives and will take effect on October 1, 2024. You can read the full statement from the Alabama Secretary of State on this matter here.
Federal: Upcoming BOI Filing Deadlines
It has been almost a year since the Corporate Transparency Act (CTA) introduced a new federal compliance requirement affecting millions of businesses registered to operate in the United States. Under the CTA, non-exempt companies must submit a report containing beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). Companies must ensure compliance as failure to do so can result in significant fines and even imprisonment.
As we near the end of 2024, we want to highlight some important deadlines and a major change for new companies. Existing companies (formed before January 1, 2024) have until January 1, 2025, to fulfill their BOI reporting obligations. For 2024, new reporting companies (created on or after January 1, 2024) must file an initial BOI report within 90 calendar days of receiving actual or public notice of their business’ registration or creation.
It’s important to note that reporting companies created or registered on or after January 1, 2025 will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.
At Parasec, we provide assistance to ensure you meet this compliance requirement on time and with confidence. If you have any questions or are ready to file your BOI report, please contact our BOI specialists at BOI@parasec.com.
Various States: Annual/Biennial Report Due Dates
The states listed below have upcoming annual report deadlines. Failing to submit annual reports on time can result in late fees, penalties, loss of good standing, and administrative dissolution of the company. Our Managed Annual Report Services (MARS) can assist in centralizing your annual report compliance and ensuring timely submission. This service helps mitigate the risk of missing any deadlines. For further details, visit our MARS webpage here.
- October 1 – MI: Nonprofit corporations
- November 1 – MA: Nonprofit corporations
- November 15 – ND: LLCs
- December 31 – NH: Nonprofit corporations (due every 5 years); HI: Corporations, LLCs, LLPs, LPs and nonprofit corporations with an incorporation/qualification anniversary date between October 1 and December 31; MN:Corporations, LLCs, LLPs, LPs and nonprofit corporations; PA: Nonprofit corporations; WI: Corporations, LLCs, LLPs and nonprofit corporations with an incorporation/qualification anniversary date between October 1 and December 31
Various States: Happy National Paralegal Day
In many states across the nation, specific days have been declared as official paralegal days. For instance, in Arizona, home to an estimated 7,550 paralegals, the profession is recognized on October 25th. In California, with over 39,000 paralegals, the day is celebrated on the last Friday in June. Georgia, which is home to more than 12,000 paralegals, celebrates these hard-working individuals for an entire week every June. Regardless of the state you live in, National Paralegal Day is celebrated across the country every October 23rd. We work with many paralegals and legal assistants, and we see firsthand how dedicated and hardworking they are. Please join us in acknowledging all the contributions paralegals make to the legal community. We see you, and we appreciate you!
Parasec Updates
Employee Ownership Month
Every October, more than 6,500 employee stock ownership plan (ESOP) companies around the United States are encouraged to celebrate Employee Ownership Month. It’s the perfect time to give a big shoutout to the amazing people who make our company successful and to honor a huge part of our company’s identity. At Parasec, we’ve been a proud 100% employee-owned company since 2006. Every person in our company plays a crucial role in our success. We work together as a team to create a positive experience for each other and our clients. We love sharing ideas for improvements and new services that benefit our clients. As the only 100% employee-owned company in our industry, every team member has a vested interest in providing reliable, accurate work, and exceptional customer service. So, when you reach out to us, you’re interacting with an owner every time! We’re super proud of our team and the effort they put in every single day.
Service Spotlight
Entity Dissolution/Withdrawal Services
We specialize in simplifying the process of dissolving a company from start to finish. Our team ensures that this multi-step process complies with the laws of the relevant states. Our entity dissolution/withdrawal research service is designed to streamline the process, allowing you to focus on other priorities. Our team conducts thorough research to determine the status of the entity and identify the specific requirements for dissolution or withdrawal in a particular state. We will keep you updated on any additional steps needed to legally terminate the entity, such as filing an annual report or obtaining a tax clearance certificate. Additionally, we will provide you with the necessary state forms tailored to your situation. Once you have the required forms, you can choose to proceed independently or enlist our assistance with the filing. Our team is equipped to offer this service in all 50 states. If you require assistance, simply contact us via email at parasec@parasec.com.
Client Testimonial
“Everyone I have worked with at Parasec has been extremely helpful and delivers answers quickly. I appreciate their support immensely and it helps me complete tasks at my job efficiently.”
~ Amy Z.