Why Was My Business Dissolved?
Before we jump into reinstating your venture, let’s understand the “why” behind it.
When you choose to form an LLC or other legal entity in a state, you are subject to a host of state laws and requirements. The laws give you permission to operate as a legal entity and these compliances have to be maintained.
Some of the most common reasons behind losing your Certificate of Good Standing or dissolution of your LLC are:
- Failure to file the required annual reports and pay fees
- Underpayment of taxes or missed taxes
- Not appointing a Registered Agent or forgetting to update Registered Agent information, which subsequently resulted in you missing important summons or government communication
- Operating without necessary state licenses
The compliance regulations vary by state. For example, in Georgia, you can fall out of good standing by forgetting to file a Notice of Publication after submitting your Articles of Incorporation. In California, failure to pay franchise taxes could lead to the same fate.
If you aren’t sure why your company was put under the “dissolved” or “suspended” status, check with your Secretary of State. Once you understand what happened, you’ll have a better gauge of what to do next: reinstate your LLC or start a new one.