Excellent 4.7 out of 5

Streamline Your Order of Reinstatement Process

banner-logo

Become part of a community of over a million entrepreneurs

The Advantages of Choosing Reinstatement

Image

Accelerate Your Business Restart

Reinstatement often proves faster than establishing a new company in many states, allowing you to continue your business endeavors sooner.

Retain Your Established Company Name

Your business name represents your identity and effort; reinstatement enables you to preserve and continue building on your established brand.

Maintain Your Business History

Reinstatement allows you to retain your company's historical records, avoiding the need to start from the beginning.

Incofile's Reinstatement Services at Your Disposal

Should your business face dissolution due to non-compliance, Incofile's Reinstatement services are designed to assist you in restoring Good Standing and recommencing your business activities by managing the reinstatement paperwork according to your state's procedures.

Image

Understanding the Reinstatement Process

Simplify the Reinstatement Process for Your Business

To initiate the reinstatement of your business, the first step is to identify any lapses in compliance, such as overlooked paperwork or unpaid fees, and rectify these issues immediately. Following this, the reinstatement typically involves:

  • Completing any state-specific reinstatement forms.
  • Submitting these forms to the relevant state authorities, such as the Secretary of State or the Department of Revenue or Taxation.
  • Settling any outstanding fees required for reinstatement.
  • Awaiting confirmation from the state regarding the reinstatement status of your business. Achieving accuracy in this process from the outset is crucial to swiftly resuming your business operations. Incofile offers reinstatement services across most states to reactivate your business entity efficiently.

Understanding the "Certificate of Good Standing"

There are scenarios where you must demonstrate that your business is legally recognized and adheres to the state's regulations. A Certificate of Good Standing issued by your state confirms your compliance, which is unattainable if your business is in bad standing.

Image

The Consequences of Being in "Bad Standing"

Difficulty in Securing Financing

Banks and lenders typically require evidence of your business’s legal status and history to assess creditworthiness for loans or transactions. Investors and partners also seek assurance of your business's legitimacy and regulatory compliance.

Obstacles in Expanding to Other States

Expanding your business across state lines requires a Foreign Qualification in the new state, contingent on your business being in good standing in its original state.

Challenges in Licensing and Regulation

Renewing or acquiring specific licenses and permits may necessitate a Certificate of Good Standing from state licensing bodies and regulators.

Impediments to Selling Your Business

To sell your business, evidence of its legal standing, historical compliance, and operational history is necessary for brokers and potential buyers.

Frequently Asked Questions About Business Reinstatement

A: Reinstatement becomes necessary if your business is dissolved due to non-compliance, affecting its good standing with the state. A successful reinstatement process, adhering to all requirements, reinstates your business as a legal entity, restoring all previous benefits.

A: Reinstatement costs vary by state. For instance, Texas charges $75 for reinstatement after involuntary dissolution and $15 following voluntary dissolution. Massachusetts requires a $100 application fee for reinstatement. These fees are in addition to any overdue taxes, penalties, fees, and interest required to regain good standing.

A: Maintaining good standing involves staying current on fees, filing necessary reports (annual or biennial) with the Secretary of State, updating business records after significant changes through Articles of Amendment, and meeting annual state tax obligations. Neglecting these responsibilities can lead to a loss of good standing, resulting in dissolution. Filing a reinstatement order is the pathway to restoring your business’s good standing.

A: The time required for reinstatement varies by state. For example, Minnesota reports a turnaround of 3-5 days for most business filings, while Nebraska advises a week's wait for processing reinstatements. Some states offer expedited services for an additional fee. Consult your Secretary of State for specific timelines.

A:A business is considered in good standing when it is current with all filing and compliance obligations in its home state, including annual or biennial reports, compliance documents, and state taxes. Filing the necessary forms with your state, or using Incofile's services, can secure a Certificate of Good Standing, affirming your business's compliance and enhancing its credibility with partners, investors, and lenders.

Reinstate

Ready to
Get Reinstated?