Maintaining a business’s legal standing requires mandatory compliance filings with state governments, often called annual reporting. The cost and specific requirements vary significantly depending on the state and entity type. This yearly submission updates the state’s public record of the business. Understanding North Carolina’s exact fee structure and submission process is necessary for compliance.
The North Carolina Annual Report Requirement
In North Carolina, the Secretary of State (SOS) mandates an annual report filing for most domestic and foreign business corporations to maintain active status. This requirement applies to all for-profit entities, including C-Corporations and S-Corporations.
The required information includes confirming or updating the company’s principal office address, the names and addresses of its officers and directors, and the registered agent’s contact information. The annual report for corporations is due on the 15th day of the fourth month following the end of the company’s fiscal year. For businesses operating on a calendar year, this deadline falls on April 15th.
Filing Costs for Corporations
The fee associated with the annual report for for-profit corporations in North Carolina is comparatively low, regardless of the company’s size or capital stock. A domestic or foreign business corporation must pay a statutory filing fee of $20 when submitting the report online through the SOS portal. The state charges a slightly higher fee of $25 for a paper annual report submitted via mail.
The online filing option is generally preferred due to the small cost savings and faster processing time. The filing fee is the same for all for-profit corporations, with no tiered fees based on net worth. Non-profit corporations generally do not have a statutory annual report requirement or associated fee with the Secretary of State, though some entities like charities may have separate reporting requirements.
Filing Requirements for Limited Liability Companies and Other Entities
Limited Liability Companies (LLCs) are also required to file an annual report with the North Carolina Secretary of State, but their associated fee is significantly higher than that of a corporation. The filing fee for a domestic or foreign LLC is $203 when submitted online, or $200 when filed using a paper form. This much higher fee often causes confusion for business owners who see the low corporate fee.
The $200 base fee for the LLC annual report is a statutory charge paid to the SOS, which should not be confused with the state’s separate franchise tax. The franchise tax is administered by the North Carolina Department of Revenue (DOR) and applies to corporations and LLCs that have elected to be taxed as corporations. This tax has a minimum charge of $200, calculated at a rate of $1.50 per $1,000 of the entity’s net worth. Most standard LLCs, which are taxed as pass-through entities, are only required to pay the $200/$203 Annual Report fee to the SOS, making it their main recurring state compliance expense.
Methods of Submission and Associated Fees
The North Carolina Secretary of State offers two primary methods for submitting the annual report: electronically via the state’s website or physically by mail. The online filing system allows business owners to access a pre-populated form, complete the necessary updates, and submit payment immediately. The state’s fee structure is designed to encourage this online submission, as seen in the $5 difference for corporations.
While the statutory fee is the main component of the cost, additional charges may apply depending on the payment method chosen. When filing online, the SOS accepts payment via credit card or an ACH debit. The slightly higher online fee for LLCs—$203 versus $200—often includes a small electronic filing or convenience surcharge. Online submissions are generally processed faster than the mail-in option, which requires enclosing a check or money order.
Consequences of Late Filing and Non-Compliance
Failing to submit the annual report by the due date or not paying the required fee can lead to consequences, even though the Secretary of State does not impose a late penalty fine. When the filing becomes overdue, the business loses its good standing status with the state. This loss can interfere with a company’s ability to secure loans, enter into contracts, or transact business in other states.
If the annual report remains unfiled, the state will issue a “Notice of Grounds for Administrative Dissolution” or revocation of the entity’s charter. The business has a 60-day window from the date of this notice to correct the deficiency by filing the report and paying the fee. Failure to comply within that period results in the SOS administratively dissolving the entity. Reinstatement is possible but requires filing all missed annual reports and paying a separate reinstatement fee of $100.