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Annual Report: Glossary Definition

Definition of Annual Report:

An Annual Report typically refers to a filing a corporation or LLC is required to make with the Secretary of State of its state of incorporation or formation.  The Annual Report typically requires information such as the names of the members of the Board of Directors (for corporations), managers or members (for LLCs) and financial information. An annual report could also refer to a Form 10-K that is filed with the Securities and Exchange Commission by public companies.

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Today’s Question — Friday, July 30

Must I pay all of my employees?

It is not unusual for start-up companies to have limited cash resources. It is also not unusual for entrepreneurs to entice employees to the company by offering stock compensation, instead of cash, until such time as the business can afford to pay regular salaries. However, it is advisable to consult with an employment lawyer in your state of operations to determine if this is permissible under the state’s wage statutes. In most cases, the lawyer will likely advise that each employee be paid an amount equal to applicable minimum wage amounts.

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