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Overview
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FAQs
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-
What is reinstatement?Reinstatement is the process of returning an inactive or non-compliant company to good standing within a state.
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When is reinstatement required?A company may be required to undertake the reinstatement process when it has fallen out of good standing with its state of incorporation or state of qualification (if it has registered to transact business in a state other than the state of incorporation), or is dissolved by the state due to failure to comply with state 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. Some states also allow a reinstatement to be filed if the company has dissolved but would like to reverse the dissolution to again begin transacting business under the same company.
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What risks are associated with being in "bad standing"?When a company has not met all the requirements of its state of incorporation or state of qualification (if the company has registered to transact business in a state other than its state of incorporation), such as filing annual reports and paying the necessary fees, that company is considered to be out of good standing or in bad standing in that state. 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 revokes the company’s corporate or LLC status, the benefits of being a corporation or LLC, such as the limited liability protection provided to the owners, are lost.
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What does the reinstatement process entail?BizFilings helps you through the reinstatement process by determining outstanding or overdue fees that 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.
$249 + state fees
Processing times vary based on the state and filing option selected (standard vs expedited).
Tools to help you choose
We have resources to help you understand your options.