LLC Annual Renewal Process - How to Avoid Scams
An important aspect of obtaining an LLC is asset protection, which can benefit your overall estate plan. This is why starting and maintaining a Limited Liability Company (LLC) can be a rewarding venture, but it also comes with responsibilities and potential pitfalls. One common issue that many LLC owners face is the proliferation of scams targeting new and established business entities. Below is an example of a typical spam mailer that a new LLC owner might receive. They aim to make the document appear as if it came from an official government entity, when in fact, it did not. Protect yourself and your business by staying informed and vigilant.
Beware of Unsolicited Communications
It is not uncommon for LLC owners to receive unsolicited emails or mail similar to the mailer above requesting fees for certificates, renewal fees, or entry into various "registers" or "publications." These communications often look official and may cite alarming consequences if payment is not made. However, these are typically spam or even scam operations. Under no circumstances should you respond to or send funds in response to such requests.
Official Communications
All official correspondence related to your LLC—including annual renewal notifications—will come from the Oklahoma Secretary of State. The Oklahoma Secretary of State handles legitimate filings and renewals for LLCs, and any communication outside of this source should raise a red flag. The Oklahoma Secretary of State issued the following important notice to all new LLC owners:
“You may receive solicitations from third-party companies offering to order good standing certificates or process various filings on your behalf. Please be aware that these companies are NOT affiliated with the Oklahoma Secretary of State’s office. You may order and file documents directly with our office online at www.sos.ok.gov, by mail, or in person at 421 N.W. 13th, Suite 210, Oklahoma City, OK 73103.”
Annual Report Filing Process
The only ongoing cost associated with keeping your LLC active on the Secretary of State’s records is the $25 fee associated with filing your annual report. The annual report is very simple and can be completed online. Alternatively, you can print the form from the Oklahoma Secretary of State’s website and mail or deliver it to their office with a $25 check. The annual report is due each year on the same date that your LLC was originally filed. The Secretary of State typically sends an email about two months prior to your renewal date to remind you. Make sure your contact information with the Secretary of State is current to ensure you receive these reminders. Also, there aren’t huge penalties for failure to pay the annual $25 fee on time. If you forget, just contact the Secretary of State and pay for the preceding year(s). Note: failing to pay for a series of years can make it more complicated, but typically filing a reinstatement is not a big deal.
What to Do If You Receive Suspicious Mail
If you receive any mail or other communication regarding your LLC from a source other than the Oklahoma Secretary of State or our firm, do not respond. You can throw it away, or if it gives you concern feel free to contact us. We will help you verify the legitimacy of the communication and guide you on the proper steps to take, if any.
Protecting your business from scams is crucial to its success. By remaining alert and ensuring that all official matters are handled through legitimate channels, you can avoid unnecessary stress and financial loss. If you have questions about your LLC’s annual renewal process or need assistance, please do not hesitate to reach out.