Indiana Nonprofit Annual Report

Effective July 1, 2015, Indiana nonprofit annual reports will now be due on a biennial basis, instead of annually (Source).

Currently, nonprofit entities file an Indiana annual report every year, while for-profit entities, such as LLCs and corporations, file biennially. The Business Law Survey Commission “does not know why nonprofits were excluded from the biennial process,” though maintaining a separate schedule for nonprofits is rather confusing (Source).

What does this mean? In no official terms, the state of Indiana is making life easier on themselves, as they only have to process reports every other year. For your nonprofit, you’ll have to remember to file every other year.

Managing Annual Reports

Annual reports are one of many compliance responsibilities for nonprofits. Filing them timely updates the state with current organization, and keeps your legal entity in good standing. If you don’t file, the opposite is true: your entity falls out of good standing, officers and directors can become subject to personal liability, and you face fines and penalties.

Many nonprofits track their due dates in-house. This makes sense for organizations that operate in only one or two states, or have a limited budget. For larger organizations, outsourcing compliance makes sense, as tracking due dates and filing timely can be a strain on limited resources. For that, Harbor Compliance provides a solution.

Anything else about this piece of legislation?

Yes. It affects Indiana registered agents, too. As of July 1, 2015, Indiana registered agents must maintain several points of information on the entities they represent. For example, the new legislation requires Indiana registered agents to maintain contact information, and ensure the contact is a natural person who is also an officer, director, employee, or authorized agent. Indiana registered agents must also mark a box on updated state forms, which gives their consent to appointment. Prior to Indiana, only Wyoming asks for this level of detail from registered agents.

This doesn’t necessarily mean your company’s information will suddenly be made private. What it does mean is that the state can request this information from the registered agent at any time. If the agent doesn’t have it, they can be socked with a fine. That means if your Indiana registered agent starts asking for more information, you’ll have to oblige.