Reinstatement is the process of returning an inactive or non-compliant company to good standing within a state. Businesses face ongoing required formalities in the state of formation and, if applicable, the state of foreign qualification. Such requirements often include filing annual reports or statements, paying the associated filing fees and paying required franchise or other state taxes. When a company fails to undertake these steps in a timely manner, it risks falling out of “good standing”.
Businesses that are not in “good standing” risk administrative dissolution or revocation by the state. When a state administratively dissolves a business or its legal existence is revoked, the benefits of being a separate legal entity are lost. This can make the owners personally liable for the debts/liabilities of the company.
The process of reinstatement requires a company to resolve outstanding compliance issues and submit the necessary forms and fees to the state to bring the company back into good standing. In some cases a company is not able to reinstate if it has been too long since the company was administratively dissolved.
Contact us now to find out about reinstating your company or for more information on the process.