It’s that time of year again when most entities, with only a few exceptions (such as non-profits), that conduct business within the State of North Carolina are required to file an Annual Report with the North Carolina Secretary of State. More specifically, entities will be required to both submit their Annual Report and to pay the accompanying fee by April 15, 2020.
Annual Reports can be filed quickly and easily through the North Carolina Secretary of State’s user-friendly website (https://www.sosnc.gov/divisions/business_registration). Although it may be tempting to click through the screens to quickly complete and submit the filing, business officers and managers should first carefully review all information associated with the entity and make any changes necessary to update its information. For example, are the members and managers and their addresses still correct? Has the business moved or changed its registered agent? By making such changes through the Annual Report, your business: (a) will make sure that the public has accurate information about the company and its officers; (b) lessens the risk that important notices could get lost; and (c) can avoid paying a separate, additional fee for changes or updates during the year.
In the event that an entity fails to file its Annual Report, the North Carolina Secretary of State will send a notice before taking additional action against the entity. However, failing to file Annual Reports will, eventually, result in its administrative dissolution, thus leaving individual owners and officers exposed to personal liability for debts and other wrongs that might occur while the dissolution remains unrectified. Dissolved entities can be re-instated, but such reinstatement requires additional fees. Hence, the better practice is to always file on time!
For further information regarding this task, as well as other laws and requirements impacting corporations, limited liability companies and other entities, we hope that you will not hesitate to contact the attorneys of Law Firm Carolinas. We look forward to working with your business towards your success!