The Importance of Filing Annual Reports with the Secretary of State

There are around 2 million businesses in Florida including many general contractors that are required to file an annual report by May 1^st including LLCs as well as limited and limited liability partnerships in order to continue operating as legal entities that comply with the regulations set by the state.

Basic information needs to be updated annually including the primary business location, the officers’ names, as well as the business agent’s details. It is important to note that the annual report does not include financial information but is rather used to update state records. Regardless of whether or not businesses need to make changes, it is still a legal requirement that the annual report be submitted to maintain their ‘active’ status with the Department of State in Florida.

The cost to file depends on the type of business. If the report is filed by May 1^st, the costs are $150 for-profit corporations, $138.75 for limited liability companies and $500 limited or limited liability partnerships.

There are important implications for general contractors who neglect or forget to file including late fees, company dissolution and potential loss of business.

Late Fees

Regardless of the business entity that a contractor operates under, they are required to file an annual report. The report must be filed by May 1^st otherwise a late fee of $400 applies. Unfortunately, the penalty is automatically applied by the filing system and as such cannot be reduced or waived. A failure to file an annual report can also result in expensive feeds for reinstatement in addition to other penalties that can be more than $900.

Company Dissolution

The state may administratively dissolve the company if it fails to comply with the annual report requirements for a long enough period of time. In Florida, this time is set as the third Friday in September, and dissolution will happen on the following Friday (the fourth Friday of September).

Once this happens, the business may not continue with any of their activities aside from the process of winding up the company. Once a company has been dissolved, an owner’s personal assets are no longer legally protected from business creditors. In effect, this means that owners are personally liable for business debts and judgments.

Loss of Business

Failing to file a company’s annual report will result in forfeiting its ‘good standing’ with the State. This can have a big impact on expansion plans and financing opportunities. In Florida, the Certificate of Good Standing is referred to as a Certificate of Status. If a company is unable to provide the certificate, it serves as an indication that there is something wrong with the company’s standing with the State.

For general contractors, in particular, this can be problematic as it is often a requirement for businesses before they will award a building contract. Lenders may also require a company to be in good standing before it will approve new financing, and the company will be viewed as an increased risk if it is not able to produce the certificate.

At Contractors Reporting Services in Tampa, FL we can help ensure that your general contractor business remains in good standing. We will compile and file an annual report for your business so that you are not exposed to the cost and risks of late filing. Our team will ensure that your annual report is filed correctly and on-time, every time. In addition to filing annual reports, Contractors Reporting Services is also able to offer other business services such as corporation set up, corporation amendments, renewal services, annual minutes as well as business tax registrations and renewals.

The next article was first seen on The Importance of Filing Annual Reports with the Secretary of State and is courtesy of Contractors Reporting Services. Read more on:} http://activatemylicense.com

8 Different Licensing Services That You Might Need as a Florida General Contractor

Once a contractor has passed the state exam, there are a number of licenses and reports that they will be required to hold in order to work as a general contractor in Florida. There are also several that may become necessary under certain circumstances. Eight important licensing and reporting requirements include initial applications, change of status, state and county registration, additional business licensing, license reinstatements, financial stability reports and works comp exemptions.

Initial Applications (Including Certification and Registration)

Once a contractor has passed their State exam, they will need to provide trade-specific information. As these requirements vary from trade to trade, using a specialized application service can save time and money as delays have a direct impact on a contractor’s ability to work.

Change of Status (Also Known as a Transfer)

In the event of a contractor moving from one company to another, there are licensing implications. The State requires that a contractor files an application and meets specific requirements to be eligible to transfer. This process can be time-consuming as there are often delays.

County and State Registration

Once contractors have passed the state county exam, they are required to obtain a State Registration as well as a Certificate of Competency (also referred to as a county registration) in order to operate as a general contractor in Florida.

Registration and Renewal of Licenses

Registering your license is a requirement if you are working, wanting to obtain permits or advertising in a local municipality. Keeping up to date with State and County license renewals allows a general contractor to remain in compliance with Local Codes and State Statutes.

Additional Business Guidelines

The process of applying for the qualification of additional businesses can be convoluted and confusing. This process is for general contractors that hold a single license and want to qualify a second company, or for contractors who hold multiple licenses and are looking to qualify a separate company using one of the licenses.

License Reinstatement

In certain situations, a contractor’s license may be revoked or place on Null and Void Status. In cases like these, a contractor would apply to the State to have the license reinstated under the Reinstatement Guidelines. This time-consuming process can be frustrating for those that are unfamiliar with the requirements.

Financial Stability Review & Report

The Business Financial Stability Review & Report checks against public records at County, State, and Federal levels and are accepted and approved by the State as well as the local county or municipality. Using a service such as Contractors Reporting Services, contractors in Florida can have the report back within one business day.

Workers Compensation Exemption

A worker’s compensation exemption is for an officer of a corporation or a member of a limited liability company who wishes to be exempted from worker’s compensation. If a general contractor is granted a Certificate of Election to be exempted, they will not be able to claim benefits. In order to be exempted, there is a form that must be completed, and specific requirements need to be met.

Get Assistance with Licence Applications

If you need help with your license applications, Contractors Reporting Services in Tampa, Florida offers reliable results. Our in-depth understanding of the requirements for each license will help relieve frustration and confusion.

Regardless of whether you need financial reports, licensing or business services, we’re confident that we can help you tackle your admin. Procedures and requirements change regularly, staying on top of what is required can be time-consuming and frustrating. Our goal is to offer our clients peace of mind by taking care of paperwork and licensing processes so that they can focus on building.

The next post was originally seen on 8 Different Licensing Services That You Might Need as a Florida General Contractor and is republished from Contractors Reporting Services. Find more on:} Contractors Reporting Services Blog Tampa