Needing or wanting to reinstate an LLC or corporation after it was involuntarily dissolved is not uncommon, but often, the individuals wanting to take this action are unsure of what steps to take.
Read on for more advice and guidance about reinstating your business:
Firstly, try to understand what led to the dissolving of your business:
Did you have a payroll system that wasn’t well established, leading to the non-submission of annual report payment fees when due? Perhaps you failed to pay franchise taxes on time, or failed to submit annual reports, year after year. Whatever the cause of your business being involuntarily dissolved, once you’ve identified it, you can begin the reinstatement process as soon as possible.
However, should you not know or understand why your business was dissolved, you can get in touch with your Secretary of State or Department of Corporations to discover the cause.
Then, file reinstatement forms with your state:
Once your LLC or corporation has been dissolved, it effectively loses all its legal and fiscal protection, and any tax benefits it received with incorporation. The quicker you can get your business reinstated, the quicker you can begin functioning as a business again.
Filing for reinstatement is a process an entity management agency can assist you with, otherwise you can begin by finding out what paperwork you need to fill out, and then submitting it.
Next, pay all fees that may be outstanding
It’s possible that your small business may owe money in both filing and penalty fees, and while these depend upon which state you’re in, the sooner you can get them paid off when you submit your reinstatement paperwork, the better.
What to do if you need further help with the reinstatement process:
Third parties can be immensely helpful when it comes to things like reinstatement, and can take all of the stress and worry out of it, not to mention save you time on the entire process. Helping you to prepare and submit the necessary paperwork, they’ll determine what fees are owed by your business, and then notify you when your LLC or corporation has been restored back to active status and ideally, good standing.
Having your small business dissolved is no laughing matter, and reinstating it is not always straightforward. To this end, try working with a third-party entity management agency, who will remove the worry and get you back up and running in next to no time.