Regaining your standing with the state
Reinstatement is the process of returning an inactive or non-compliant company
to good standing within a state. C corporations, S corporations and limited liability companies (LLCs) face ongoing state formalities, such as annual reports or statements and
their associated filing fees, franchise and/or other state taxes. If a company
fails to undertake these steps, it risks falling out of “good standing” in a
state.
Why it’s important
Companies that are in bad standing long enough
risk administrative dissolution or revocation by the state. This should be
avoided because when a state administratively dissolves a corporation or LLC or
revokes its corporate or LLC status, the benefits of the entity type, such as
the limited liability protection provided to owners, are lost.
Features & benefits
Reinstatement requires a company to resolve outstanding business compliance issues and submit necessary forms and fees to the state. BizFilings helps you through the reinstatement process by:
- Identifying all steps your business must take to become compliant
- Determining outstanding or overdue fees due to the state
- Obtaining the forms you must complete as part of reinstatement
- Auditing your reinstatement forms for common errors prior to submission
- Submitting your completed reinstatement forms to the appropriate state agencies
- Notifying you when reinstatement of your company is complete
Key Benefits
Reinstating
your business allows you to regain the benefits and advantages of both
corporate status and the limited liability protection that comes with it. When
you reinstate your business, you will gain the peace of mind that you can enter
new contracts and continue running your operations without worrying that your
business has an uncertain legal status.
Keep in Mind
After you have taken the steps to reinstate your business to good standing with the state, consider using a compliance management tool to notify you of upcoming compliance events for your corporation or LLC in your state of incorporation, and in your state(s) of qualification, if applicable, so that you can avoid falling out of good standing again.
BizComply Online Compliance Management Tool