Frequently Asked Questions

What are the procedures for reinstating a business entity to good standing in most states?

Reinstating a business entity to good standing in most states involves a series of steps. The first step is to identify the reason for the administrative dissolution. This could be due to failure to file state-required reports, not maintaining a registered agent, or not remitting funds for a dishonored check or other required fees. Once the reason is identified, the business entity must comply with the state's regulations and requirements. This could involve filing overdue reports, appointing a registered agent, or paying outstanding fees. The next step is to pay any fines or penalties associated with the failure to comply. This is usually communicated through a letter from the associated state agency. The letter will indicate 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. In some states, such as Florida, if a business entity has been administratively dissolved for more than a year, its name can be used by another company. Therefore, it's crucial to act promptly to avoid losing the business name. In Georgia, businesses that are dissolved must begin liquidating assets and wrapping up business matters right away.