Annual report filing vs using a service

Here's the thing: annual reports aren't complicated. They're an one page form that confirms your LLC's name, address, and registered agent. Filing takes about 10 minutes. Yet services charge $50-$100 to do it for you.

For some founders, that's money well spent. They don't wanna remember deadlines. They don't wanna deal with state websites. They'd rather pay someone else to handle it.

But most founders just file it themselves. It saves $50 to $100 a year. You stay on top of your own compliance. And you figure out how your state's system works. How to keep your LLC compliant walks you through all of it.

Here's the whole breakdown so you can make up your mind.

Quick comparison

What is an annual report?

An annual report (sometimes called a statement of information, periodic report, or franchise tax report) is a filing every LLC must submit to its state. It confirms that your business information is current. It's not a financial report. You don't submit profit and loss statements or tax returns. You just confirm your name, address, and registered agent.

Every state but a few makes you file something each year or every other year. Sometimes it's called an annual report. Sometimes it's a statement of information. Different names, same idea.

Annual reports explained breaks down what each state requires.

Miss your annual report deadline and it's a real problem. The state fines you. Ignore those fines long enough and your LLC gets administratively dissolved. That means you lose your liability protection and your right to do business. How to avoid administrative dissolution walks you through the reinstatement process if that happens.

Filing the annual report yourself

Filing your annual report yourself isn't hard. Every state has an online portal where you can submit your report and pay the fee. It takes 10-15 minutes.

Here's what you gotta do:

• Find your state's portal. Most states have a business filing section on the Secretary of State site.
• Log in or sign up. You'll need your LLC's file number or name.
• Check your info. The state already fills in your LLC name, address, and registered agent. You just make sure it's right.
• Update whatever changed. If you moved or switched your registered agent, update that here.
• Just pay the fee. You can use a credit card or ACH. Depending on your state, fees run from $25 to $500.
• Save your confirmation. Download the confirmation page. You'll need it for your records.

That's it. No lawyer. No accountant. Just you and the state site. Can you start a LLC yourself goes for annual reports too. If you filed your own formation docs, you can file your own annual report.

The one thing to watch: don't forget the deadline. Set a calendar reminder 30 days before your report is due. That way you have time to file and you're not rushing. If you're filing in a state with a weird deadline like Michigan's February 15 deadline or Maryland's April 15 deadline, put it on your calendar the moment you form your LLC.

Using a service to file

Most LLC formation services let you add annual report filing on. You pay extra and they file it for you. They remind you, you check that everything's right, and they send it in.

What services actually do:

• Send you a reminder 30 to 60 days before your deadline
• Pre-fill the report with your info
• Send it over so you can take a look
• Submit it to the state once you approve
• Pay the state fee for you (you pay them back)
• Send you confirmation when it's filed

ZenBusiness, Bizee, and Inc Authority all let you add annual report filing. LegalZoom does too. But it costs more.

The catch: you still have to review and approve the report. The service won't do that part. So you're not really saving time. You're saving brain power. No need to remember the deadline or figure out the state website.

DIY filing vs using a service looks at the bigger question: is a service even worth it?

Cost comparison

The service fee doesn't change based on your state's fee. So in cheap states like Michigan ($25) or New York ($9), you're paying more in service fees than the actual filing. In expensive states like Massachusetts ($520), that service fee is a much smaller slice of the total.

Every cost of starting a LLC breaks down all the fees you'll pay. Annual reports included.

State deadlines and fees

Deadlines are all over the place depending on your state. Some go by anniversary. Some are on a fixed date. These are the ones founders ask about the most:

• Michigan: It's due February 15 each year. You pay $25 online. Our Michigan LLC formation page covers the details.
• Maryland: April 15, every year. $300. Maryland LLC formation takes care of the county personal property tax as well.
• Massachusetts: It's due each year on the anniversary. $520. Our Massachusetts LLC formation page explains why it costs so much.
• California: The Statement of Information has an anniversary date. The minimum franchise tax is $800. Our California LLC formation page has the full cost breakdown.
• Virginia: It's the last day of your anniversary month. That'll be $50. Our Virginia LLC formation page has all the details.
• Texas: Franchise tax is due May 15. You don't file an annual report. Our Texas LLC formation page covers the franchise tax rules.
• New York: Biennial, so every two years. $9. Our New York LLC formation handles the publication requirement as well.

LLC formation timeline by state has every state's deadlines in one place.

When using a service is worth it

Using a service for annual report filing is worth it if:

• Got multiple LLCs? Keeping up with deadlines for 5 or more entities is a pain. A service tracks them all in one dashboard.
• You're in a state that's slow or just plain complicated. If a state has franchise taxes, personal property taxes, or makes you file separately, it's a pain to deal with. California and Maryland are two examples.
• You're always on the go. If you can't get to a computer before your deadline, a service can take care of it while you're gone.
• You've missed a deadline before. If you got fined or shut down, the reminders are worth it.
• You want one dashboard. With services like ZenBusiness and Bizee, you get all your compliance tasks in one spot.

If you're starting a multi-member LLC with complex ownership, single-member vs multi-member LLC shows how the compliance burden shifts. More owners means more coordination.

If you've got multiple entities, Series LLC vs standard LLC is worth a read. A Series LLC might cut down the annual reports you file. Depends on your state.

Which one makes sense for you

File yourself if:

• You have 1-2 LLCs
• You're organized and you remember deadlines
• You wanna save $50 to $100 a year
• You know your way around state websites
• Your state has an annual report. It's simple and cheap.

Use a service if:

• You have 3+ LLCs
• You've missed deadlines before
• You travel constantly
• You're in a complex state (California, Maryland, Massachusetts)
• You want a dashboard that's easy to use

If your formation service throws in compliance monitoring for free, that's a win. Comparing Inc Authority vs ZenBusiness shows which ones offer it.

If you already have a service, see what they charge to file your annual report. Some bundle it into their premium plans. Others make you pay more. ZenBusiness vs Bizee breaks down two popular picks.

One last thing: if you skip your annual report and get administratively dissolved, you'll have to file a certificate of good standing after you get reinstated. That's one more step you can dodge by staying on top of things.

And if you're starting a new LLC in a state that takes forever, expedited filing vs standard filing breaks down whether it's worth paying extra to speed things up. Same goes for annual reports. If your deadline is tight, paying for help might be worth it.