New Year, New You: Avoiding Administrative Dissolutions/Revocations
Posted by Gennine Cooper
January 2, 2020
5…4…3…2…1. It’s a brand new year which means you will be making resolutions and vowing to lose those extra few pounds lingering from Grandma’s homemade Christmas cookies. But after the confetti has fallen and the party is over comes one of the busiest times of the year for business. Most especially, Delaware corporation owners are preparing to submit their Annual Reports and Franchise Tax payments. However, Delaware is not the only state that requires additional paperwork and/or tax payments to stay in compliance. While many are concerned with hitting the gym, some neglect completing that necessary paperwork causing their entities to fall out of compliance.
So what does administratively dissolved/revoked mean? Across the country, states may have different names for this action, but for the most part, administratively dissolved, revoked, terminated, etc. means the state has taken action and rendered your company unable to legally conduct business due to not submitting an annual report, paying your annual taxes, maintaining a registered agent, etc. Most often, removing your entity from this status will require payment and/or any additional filings. Being in an administratively dissolved status can also cause problems when trying to qualify in other states, open banking accounts, and other actions that require your company to be in good standing. Below are some tips to help you keep from failing those New Year’s Resolutions and your business from being Administratively Dissolved/Revoked.
Choose Realistic Resolutions
When choosing a fresh start for the year, make sure to choose goals that are attainable. For example, choosing a registered agent company who is just as dedicated to seeing your company succeed as you are is a great place to start. Incorporating Services, Ltd. offers additional programs such as Annual Report Filing Service (ARFS) and Annual Report Monitoring Service (ARMS) to remind you that your Annual Report is due and even take care of preparing and filing the document for you. This service alleviates having to remember the various dates that your report(s) is due in each state and minimizes the chance of your company being administratively dissolved.
Make a Plan
For most states, you can mark on a calendar when all important documents and tax payments are due. For instance, Annual Reports and Tax payments for Delaware corporations are ALWAYS due on March 1st. Tax payments for Delaware LLCs, LPs, and LLPs are ALWAYS due on June 1st. Even your registered agent company has a specific renewal month for your annual renewal bill. Although reminders will be sent by either the state or your registered agent, there is always the possibility of reminders getting lost in the mail or an email address being incorrect. Furthermore, some states do not send reminders at all, thus having those dates already on a calendar is a great back up plan. If you have questions about when your reports/payments are due, you can always call your registered agent company to assist you.
Keep an Open Dialogue with Your Registered Agent Company
One of the biggest opportunities for growth between a registered agent company and its clients is open communication. All business owners understand that with priorities such as changing locations or training new employees, the last thing on anyone’s mind is: ”I need to call my registered agent to update them of this change.” However, not knowing a new address or a new contact’s email/mailing address makes it difficult to successfully send reminder notices. One strategy Incorporating Services, Ltd. uses to combat this issue is by providing an Entity Contact Update form with all Annual Renewal Invoices. Simply fill out the paper and return by mail, email, fax, or login into our client portal, Snapshot. This ensures that if your company has moved or if a new employee is taking the reins all communication will be maintained as effortlessly as possible so as to keep your entity in good standing.
If You Do Fail, Don’t Panic
Let’s be real, we are all human and we sometimes fail. If you do forget to file that report or pay those taxes, Incorporating Services, Ltd. is fully equipped to file the necessary documentation to get your company out of administrative dissolution and back into good standing. For additional information, please call (800) 346-4646 or email firstname.lastname@example.org or email@example.com.
Amanda Archambault, Registered Agent Associate