Does Registered US Company Require Annual Review?

Did you know that it's really necessary to conduct an annual review after registering a US company?

In recent years, with the acceleration of globalization and the rapid development of China's economy, more and more enterprises and individuals have chosen to register companies in the United States to expand their international markets, attract foreign investment, or enjoy more favorable tax policies. However, among many questions about the operation of US companies, whether an annual review is required has always been a topic of great concern. Many people are confused by this issue, and some even believe that US companies do not need to conduct annual reviews because of their relatively relaxed business environment. But is this really the case?

In fact, the specific requirements for annual reviews in different states of the US are not entirely consistent, but almost all states stipulate that companies must regularly submit annual reports to relevant departments and pay related fees. This annual review mechanism is not intended to increase the burden on enterprises, but rather to ensure the legality and transparency of enterprises, maintaining market order. For example, California, one of the states with the largest number of companies in the US, clearly stipulates that all limited liability companies LLCs and corporations must submit annual reports each year and pay corresponding fees. If the annual review is not completed on time, the company will face fines or even the risk of having its license revoked.

Recently, a law firm in the US released a research report pointing out that in recent years, due to factors such as the pandemic, many Chinese branches established in the US failed to complete the annual review procedures in time, resulting in operational restrictions. For example, a Chinese cross-border e-commerce company in New York was placed on a blacklist by the local industrial and commercial department in 2025 for failing to update its annual report in time, which not only affected its normal business operations but also hindered subsequent financing. This case once again reminds us that ignoring the importance of the annual review may lead to unforeseen consequences.

So, what exactly does the annual review process for US companies look like? Generally speaking, companies need to log in to the official industrial and commercial website of their respective state, fill out the annual report form, including basic company information, changes in shareholder structure, address changes, etc., and pay a certain amount of annual review fees as required. For example, in Texas, companies only need to submit annual reports online, while Nevada allows submission of paper documents by mail. It is worth noting that some states also require companies to provide financial statements or other proof materials, so it is recommended that companies carefully verify their own situations before conducting the annual review to avoid missing important steps.

For enterprises that are new to the annual review of US companies, choosing the right partner is crucial. Some professional accounting firms or business consulting companies can provide one-stop services, assisting enterprises throughout the entire process from data preparation to submission and review, greatly reducing operational difficulty. According to statistics from a well-known consulting institution, in the first half of 2025, over 60% of Chinese enterprises chose to outsource their annual review work to third-party institutions to save time and effort.

Of course, there are also people who question since the annual review requirements in different states of the US are not uniform, why can't they be unified? In response, the US Chamber of Commerce publicly stated that this difference is designed to adapt to the actual economic development situation of each state. For example, the annual review process in New York, a financial center, is relatively complex, while in emerging technology cities like Austin, it is relatively simplified to attract more start-ups. This flexibility not only reflects the characteristics of the US federal system but also provides more choices for companies of different sizes.

Despite this, some people still believe that frequent annual reviews increase the administrative costs of enterprises, especially against the backdrop of an unstable global economic recovery. In response to this view, the US Small Business Administration SBA emphasized in its latest guidelines that the annual review is not only a legal obligation but also an important opportunity for enterprises to enhance their management level. By regularly reviewing their own operating conditions, enterprises can better identify potential problems, optimize resource allocation, and enhance competitiveness.

In summary, US companies indeed need to conduct annual reviews, and this process should not be ignored. Whether for compliance needs or long-term development considerations, enterprises should attach great importance to annual review work and avoid unnecessary trouble caused by negligence. In the future, as the international business environment changes, it is believed that various states in the US will further improve relevant systems to provide more friendly and convenient services for global enterprises. And for enterprises, only by keeping up with rule changes can they stand firm in the tide of globalization.