Frequently Asked Questions

What are the consequences of failing to file state-required reports for a business?

Failing to file state-required reports for a business, such as the annual or biannual informational document, can lead to serious consequences. The Secretary of State or business office in each state ensures that businesses comply with regulations. Non-compliance can result in administrative actions, including dissolution. For instance, in California, failure to file the statement of information or in Texas, the franchise tax report, can lead to such actions. A limited liability company (LLC) can be dissolved if a registered agent is not maintained. All states require companies to file an annual report, which includes the legal name of the company, office address, registered agent information, and list of members, managers, directors, or officers. Failure to submit this report can lead to dissolution. If your LLC or business entity is not in good standing, you will receive a letter from the associated state agency indicating the required actions to take, the fine or penalty associated with failure to comply, and additional actions that will be taken if regulations are not met. This typically includes a suspension first, which opens members to personal liability. Administrative dissolution or termination usually follows