How to Resolve Issues with Your LLC Registration: A Step-by-Step Guide

Launching a business often involves numerous administrative tasks, some of which can easily slip through the cracks. As a business owner, you’ve already taken the significant step of establishing your company as a Limited Liability Company (LLC). However, maintaining its good standing is equally crucial. If you’ve found yourself in a situation where your LLC registration requires urgent attention, don’t worry—you’re not alone. Here’s how you can address this issue efficiently.

Understanding the Situation

Two years ago, you registered your business as an LLC and paid the initial $100 fee, marking an important milestone. However, perhaps due to competing priorities or simply the whirlwind of tasks that come with starting a new venture, you lost track of the annual requirements for maintaining your LLC’s good standing.

You’ve recently discovered that failing to file the necessary annual reports can lead to administrative dissolution. In your case, the cost to rectify the lapse is $250, covering both last year’s and the current year’s filings. This situation can be particularly frustrating if your plans include opening a business bank account, which requires your LLC to be in good standing.

Deciding the Next Steps

Given the pressing situation, you face a few choices. If your LLC has not been filed for two consecutive years, it is at risk of being administratively dissolved, typically on April 1st. Here’s how you can proceed:

1. Act Promptly to Reinstate Your LLC: Pay the $250 to cover the previous year’s and the current year’s fees. This step will reinstate your LLC to good standing, allowing you to open a business bank account and continue operations smoothly.

2. Consider Re-registering: If administrative dissolution is inevitable, you might contemplate letting the current registration lapse and then re-registering your LLC. However, bear in mind that this approach might mean starting the entire process from scratch, which could involve additional administrative effort and potential delays.

Consequences of Administrative Dissolution

Allowing your LLC to dissolve administratively may seem like a less expensive option upfront, but it can have significant consequences. Not only will your business lose liability protection, but you could also face issues with contracts, tax obligations, and future creditworthiness. Therefore, weighing the pros and cons before opting for dissolution is crucial.

Seeking Professional Assistance

When managing the complexities of business registration and compliance, professional guidance can be invaluable. Consider consulting with a legal advisor or an accountant who specializes in