Whether your small business has become inactive or is in bad standing with the state, you can usually have it reinstated. Reinstatement is the process where you resolve any outstanding business compliance issues with your state. Once the reinstatement process is completed, your business will be active and in good standing. The reinstatement process varies from state to state. However, there are four general steps you will need to take.
1. Investigate The Reasons Your Business Is Not In Compliance
If you’re not sure why your business is no longer in good standing, you will have to investigate why. Some of the common reasons businesses fall out of compliance include:
● Not filing your annual reports correctly or on time
● An inadequate payroll system
● Not paying franchise taxes on time
● Failing to have an active registered agent
● Unpaid fees to the state
● Your business permits or licenses are expired
2. File Reinstatement Documents With The State
Business reinstatement will require different actions and documents depending on the reason for the dissolution. So, for example, getting a business reinstated after a failure to submit an accurate annual report will not have the same solution as reinstating a company after a license or permitting expiration.
To find out what actions and documents you need, contact the office of your secretary of state to find out which forms, fees, and other actions are needed to reinstate.
3. Pay Any Fees
There will be fees required to reinstate your business. The first are the administrative fees required for processing, reviewing, and approving your business reinstatement. You may also owe fees based on past operations. Finally, there could be additional fees for things like inspections or permit reinstatements.
4. Speak To The Experts
Business reinstatement can be a complicated process depending on the circumstance and the state. Asking the experts is always recommended for those looking to have a smooth reinstatement. They already know the local, state, and federal requirements for specific industries.
If you want to keep your research and errors minimal, rather than trying to do all this yourself, talk to an expert service. They’ll be able to provide a complete checklist of everything you need to know and address for your specific business reinstatement.