Reinstatement Definition

Reinstatement refers to the process of restoring a company's legal status and privileges, typically after it has been suspended or revoked for failing to meet certain regulatory or financial requirements.

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What is 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. 

When Does a Business Need to Apply for Reinstatement?

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.

Reinstatement Benefits

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

Reinstatement Considerations

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:

  • The cost of reinstatement
  • Whether you would like to continue operating that business
  • Whether someone else has taken your business’s name
  • How much time has passed since the last annual report was due
  • Whether you would like to form a new business legal entity instead 

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. 

Other Names for Reinstatement 

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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Our carefully curated team of experts provides outstanding support to communities across the United States. We firmly believe in equal access and opportunity for all entrepreneurs. To achieve this, we make sure that the sticker price for our full-service offerings is affordable. To save you even more money, we streamline the paperwork process by creating easy-to-use, guided forms and templates. Staffed with our compassionate team of formation experts, we love to serve entrepreneurs like you. Let us help you make the world a vibrant place.

Disclaimer: The content on this page is for information 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.

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Written by Team ZenBusiness

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