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Do I need to file an annual report?

If you complete a successful Regulation Crowdfunding offering, you’ll need to file a report once a year to update the SEC and your investors. The report highlights your accomplishments over the last year and details your future plans. You’ll also need to include updated financial statements. The financial statements do not need to be audited or CPA reviewed, but they need to include notes and be certified accurate by the principle executive officer.

The annual report, or Form C-AR, is due no later than 120 days after the end of the fiscal year as indicated by the financial statements in the original offering.

It can be intimidating, but Wefunder has an easy and free tool to help you through the process! When the time comes, we’ll send you a reminder email with the tool and instructions.

This might sound like a pain that you want to just ignore. But, don’t do that! If you neglect to file an annual report, you won’t be able to raise future Regulation Crowdfunding rounds until you file the annual report. However, you may still raise funds from accredited investors only using Regulation D.

Different companies have different reporting requirements: 

  • If your company was dissolved, if you’ve liquidated all your shares, or if you’ve repurchased all issued shares, you do not need to file an annual report.

  • If you have fewer than 300 shareholders, you only need to file one annual report. Then you’re off the hook!

  • If you have more than 300 shareholders but less than $10 million in assets, you need to file three annual reports before you are exempt.

If you don’t meet any of those requirements, then tough cookie, you need to keep filing annual reports. But fret not, our tool will be there to the rescue!

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