Frequently Asked Questions

What leads to the administrative dissolution of a limited liability company?

The administrative dissolution of a limited liability company (LLC) can occur due to several reasons, primarily related to non-compliance with state regulations. The Secretary of State or business office in each state oversees the compliance of businesses with these regulations. One of the most common reasons for administrative dissolution is the failure to file state-required reports. These reports, such as California's statement of information or Texas's franchise tax report, are crucial for maintaining the active status of the business entity. Another reason for dissolution is the absence of a registered agent. All LLCs are required to maintain a registered agent who is authorized to accept legal service of process for the LLC. If an LLC fails to maintain a registered agent, it can lead to dissolution. Furthermore, all states require companies to file an annual report. This report, which includes the legal name of the company, office address, registered agent information, and a list of members, managers, directors, or officers, must be submitted to the Secretary of State by a specified deadline. Failure to submit this report can also lead to dissolution. Additionally, if an LLC fails to remit funds for a dishonored check or does not pay other required fees, administrative dissolution may be pursued.