Learn more about what a reinstatement is in business.
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Here, we’ll explore the definition of reinstatement in business. We also talk about when you need to reinstate your business and what to keep in mind when choosing whether to apply for reinstatement.
The reinstatement business definition is the process of having your business go from being in bad standing to being in good standing with the government.
A business applies for reinstatement if someone dissolves the business. Dissolution can occur if the government or someone else revokes the business’s permission to operate. After dissolution, the business is no longer in legal existence. This happens if the business owner didn’t file the annual report within a certain amount of time. Or it can happen if the business owner didn’t pay the annual registration fees. In some cases, the business owner may have dissolved the business and then later changed their mind and applied for reinstatement.
With our Annual Report Service, we help you stay compliant and up to date. As a business owner, you have a million things on your to-do list. It’s all too easy for deadlines to slip through the cracks. The last thing you want is for the government to dissolve your business because you miss a deadline. Our Annual Report Service helps small business owners like you keep track of annual filings. Let us help you keep track of and file your reports, so you can spend time doing the important work.
What are reinstatement benefits? The main reinstatement benefit is that you can legally operate your business. Other reinstatement advantages include restoring the tax and other benefits from having your business legally formed. For example, you can continue to reap the tax benefits of incorporating your business as a limited liability company.
So you know the reinstatement meaning in business and would like to apply for reinstatement. If you’re thinking about applying for reinstatement, here are some things to think about:
One of the reinstatement disadvantages is the penalty the government charges you to apply for reinstatement. You may be responsible for paying the standard annual report fee plus a late or filing fee.
When a business dissolves, it does not exist anymore, legally speaking. Depending on the laws in your state, this could mean that another business may take your business’s name. Before applying for reinstatement, check to make sure that your business’s name is still available.
Use our Business Name Checker tool to see if you can still use your business’s original name.
Wondering what other terms are included in the definition of reinstatement? Reinstatement examples include re-establishing, re-forming, reincorporating, and reorganizing your small business.
In this post, we talked about the reinstatement meaning in business, which is how your business can legally operate again after being dissolved. We also touched on things to consider when deciding whether to apply for reinstatement. These include whether the business’s name is still available and whether you would like to continue operating your business.
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Disclaimer: The content on this page is for informational purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.