What does it mean to reinstate your business?
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.
How do I get my business back active?
A reinstatement document must be filed with your Secretary of State or equivalent government agency in most states in order to get your business back to being compliant and reestablished. Often times, an LLC or corporation will also need to file specific documents with the Department of Revenue.
How do I reinstate an inactive business?
Reinstating a California LLC requires filing a Statement of Information (Form LLC-12) with the California Secretary of State. Reinstatement with the Franchise Tax Board (FTB) may also be necessary by filing LLC Application for Certificate of Revivor (Form FTB-3557).
How much does it cost to reinstate a business?
Generally speaking, reinstatement can cost anywhere from $30 to $300, depending on your state.
Who can reinstate a company?
There are a number of reasons why a company may be reinstated to the register. Parties who may be keen to restore a previously dissolved company to the register include: Former directors or members of the company who may wish to reinstate the company’s trading potential.
How long does it take to reinstate a company?
There is also a prescribed fee that must be paid when lodging the application for reinstatement. The application is then reviewed by ASIC which will take between 14 and 28 days to process. ASIC will reinstate the registration of a company if it is satisfied that it should not have been deregistered.
Why is my business not in good standing?
Loss of Good Standing
A business entity can lose its good standing for several reasons, including: Failure to pay a registration renewal fee. … Failure to pay various types of state business taxes or fees. Mistakes made in a filed form, such as not signing the form or not fully completing it.
How do I reactivate my company name?
incorporate.com can help.
- Identify any outstanding state fees your business owes.
- Obtain the correct reinstatement forms on your behalf.
- Review your completed reinstatement forms.
- Submit your reinstatement forms to the relevant state agencies.
- Notify you once your company is reinstated.
Why is my business in bad standing?
What does it mean to be in bad standing? When a company has not met all the requirements of its state of formation, or any other states in which it has a foreign qualification (states other than the formation state where it is authorized to conduct business), it can fall out of good standing and into bad standing.
How do I activate an inactive company?
What are the Procedural Formalities to get the Status of a Dormant Company?
- Board Meeting. Fixing and convening a Board Meeting for approval from Board and also approving a notice for General Meeting.
- General Meeting. …
- Filing Form MSC-1. …
- Issue Certificate. …
- Maintain Register of Dormant Companies.
Should I reinstate business or start a new one?
Generally, it is better to reinstate your current LLC than to start over. One of the purposes of having an LLC is the limited liability. If you start over, you lose the limited liability for the period of time from the dissolution to when you initate the new LLC…
Can you reinstate an LLC?
After fixing the cause of noncompliance, the next step is for the entity to file a reinstatement ( sometimes called a revival) with the Secretary of State and pay any state fees. Reinstating a business requires filing with the Secretary of State, and often with the Department of Revenue or Taxation.
Can a dissolved company still operate?
In legal terms, when a company is dissolved, it ceases to exist. It cannot still be trading – although a person may trade (misleadingly) using its name. … So, your real customer is some other person or entity (perhaps the former owner or owners of the company).