Reinstate a company in bad standing
Reinstatement is the process of returning an inactive or non-compliant company to good standing within a state. Corporations and limited liability companies (LLCs) face required ongoing formalities in the state of formation, and if applicable in 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” in a state.
A company that fails to comply with a state’s rules and regulations can fall out of good standing in that state. 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 its corporate or LLC status is revoked, the benefits of being a corporation or LLC are lost to the business.
Reinstatement requires a company to resolve outstanding compliance issues and submit the necessary forms and fees to the state. Steps required to reinstate a company can include filing overdue annual statements and paying the necessary fines and paying back taxes for your company. BizFilings helps you through the reinstatement process by:
- Identifying all steps your business must take to become compliant with the state.
- Determining outstanding or overdue fees due to the state by your company.
- Obtaining the forms you must complete as part of the reinstatement process.
- Auditing your reinstatement forms for common errors prior to submission.
- Submitting your completed reinstatement forms to the appropriate state agency or agencies.
- Notifying you when reinstatement of your company is complete.
Pricing
The cost of BizFilings’ Reinstatement service varies, depending on the tasks required to return a company to good standing with the state. BizFilings only charges clients for the time spent facilitating the reinstatement process.
For questions regarding BizFilings' Reinstatement service, please contact our customer service team using the information below.
Frequently Asked Questions
Q. What is reinstatement?
A. Reinstatement is the process of returning an inactive or non-compliant company to good standing within a state.
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Q. When is reinstatement required?
A. A company may be required to undertake the reinstatement process when it has fallen out of good standing with its state of formation or state of qualification or is dissolved by the state due to failure to comply with the state’s rules and regulations. If a company is in bad standing with the state and wishes to dissolve, most states require a reinstatement to be filed prior to allowing the dissolution to be filed. Additionally, some states allow a reinstatement to be filed if the company has dissolved but would like to reverse the dissolution to begin transacting business under the same company.
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Q. What risks are associated with being in "bad standing"?
A. Companies that are in bad standing long enough risk administrative dissolution or revocation by the state. When a state administratively dissolves a corporation or limited liability company (LLC) or the corporate or LLC status has been revoked, the benefits of being a corporation or LLC, such as the limited liability protection provided to the owners, are lost.
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Q. What does the reinstatement process entail?
A. BizFilings helps you through the reinstatement process by determining outstanding or overdue fees your company owes to the state; identifying steps your business must take to become compliant with the state; obtaining the forms you must complete; auditing your reinstatement forms for common errors prior to submission; submitting your completed reinstatement forms to the appropriate state agency or agencies; and notifying you when reinstatement is complete.
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Learn More About Reinstatement
Reinstatement Related Facts:
- Corporations face a number of unique and ongoing requirements. You must take a number of actions in order to keep your corporation valid and in good standing with the state
- You need to properly capitalize your corporation, comply with the state's formation and annual requirements, issue shares, hold meetings, record corporate actions and so on. This is where 'piercing the corporate veil' comes into play.
- Failure to file annual statements and pay the necessary fees in a timely manner can result in the corporation or LLC being put into "bad standing" with the state
- Bad standing can eventually lead to administrative dissolution of the corporation or LLC.
- Reinstatement requires a company to resolve outstanding compliance issues and submit the necessary forms and fees to the state.
Related Products:The following products are related to reinstatement:
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