Don’t Forget Your Annual Corporate Requirements

Happy New Year! We want to wish all of our readers a happy and healthy 2022.

Every year, it’s important for business owners to consider the corporate actions they should take to keep their entities in good order. For example, do you need to prepare resolutions, file documents, pay fees, or take other corporate actions? Chances are there’s something that needs to get done.

In Florida, for example, you have until May 1 to file your annual report. The filing requirement applies to corporations, limited liability companies (LLCs), and partnerships. Delaware is different. Corporations are required to file their annual report and pay a franchise fee by March 1. On the other hand, LLCs and partnerships just pay a fee by June 1.

In Brazil, there aren’t any annual reports or filing fees. For once, Brazil might actually be easier than the US. Instead, shareholders of limitadas and sociedades por ações must hold meetings by April of each year. After each meeting, resolutions should be filed with the state trade board.

Following corporate formalities, whether in the US or Brazil, can impact a company’s ability to shield shareholders from personal liability. Failure to do so could also subject the company to fines, administrative dissolution, and other penalties.

Keeping your company in good standing is good corporate governance. If you don’t know what needs to be done, talk to your legal advisor. It’s their job to be proactive and help you understand what steps to take to comply with the annual corporate requirements.