Failing to file an annual report if it’s required by the state where your business is registered, can result in penalties that differ for each state. These penalties vary by state, the type of business, and even the length of the delay. Based on regulations, the business can face the following penalties for failing to file an annual report:
Late fees, which can vary based on the type of business and length of delay
Negative impact on your company’s rating and standing
Suspension or involuntary dissolution of your company
Restrictions on the ability to apply for funding, permits, resources
Legal actions