State Guides

How to Reinstate your Company

Updated December 06, 2022
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Should your business ever become inactive for an extended period of time, or fail to address the regular compliance requirements placed upon it, it may be necessary for you to apply for reinstatement with your state of incorporation. The reinstatement process brings your company back into “good standing” status, and ensures that you are operating in complete accordance with the law.  The most common reason that reinstatement becomes necessary is when a business is found to have ignored its required annual report or franchise tax filings.  

Reinstatement will likely be necessary if your company fails to observe the compliance requirements placed on it, such as annual report filings, tax payments, or past due state fees. A consistent failure to address these formalities can lead to a suspension of your company’s right to conduct business, or even a forced dissolution.  

If your company falls into “bad standing” with the state, it may be required to reinstate itself before continuing its operations, or even voluntarily dissolving.  In some states, reinstatement is also a potential solution to reforming a previously dissolved organization.  

Consequences of non-compliance

Falling out of good standing with your state can have serious consequences for both your business and your personal finances. A business that has been found to be in bad standing, and fails to reinstate itself in a reasonable time frame, can have its business license revoked, or even be forced to dissolve. In some cases, a company’s limited liability status can be revoked as well, exposing its owners’ personal finances to seizure to satisfy the company’s debts.

General process

There are some steps that must be taken in order to ensure that a company can successfully be reinstated. Here are some general guidelines to follow as you work to get back in good standing:

  1. Identifying and documenting any preexisting compliance issues.

  2. Calculating and documenting any outstanding fees or taxes due to your state.

  3.  Obtaining any forms that will need to be completed on behalf of your business.

  4. Assistance with completing any necessary forms, and a full audit of them before official filing.

  5. Submitting each form to the appropriate state agency.

  6. An official notice of your company’s completion of the reinstatement process.

Stay in compliance

Though they vary state-to-state every business must comply with certain compliance tasks. Don’t go through the trouble of reinstatement just to end up back in bad standing with the state. Make sure that you are aware of your yearly compliance responsibilities. As mentioned above, the necessary tasks depend upon your state of incorporation. Keep in mind that you will also need to consider any ongoing requirements in each state you are foreign-qualified in. Also, there are specific requirements on different business structures. The yearly tasks for an LLC will be very different from the yearly tasks necessary to keep a C corporation compliant.

Swyft can help!

Don’t be overwhelmed by the reinstatement process. One of our experienced agents can walk you through the steps, and connect you with our streamlined reinstatement service. Contact us today!

Originally published on October 25, 2022, and last edited on December 06, 2022.

Frequently Asked Questions

Looking for answers? You came to the right place. To learn more about our company mission and culture, click the link below.

How much does it cost to form a Corporation or LLC?

Swyft Filings charges only $49 + state filing fees to incorporate your business. Filing fees vary from state to state. If you have a question about a specific state, feel free to email or contact us at 877-777-0450.

After completing my order, will I have to pay additional fees to your company?

No. For business filings, you paid the total price for your order at the time you placed it. 

However, if you signed up for the Swyft Filings Registered Agent Service, you will be charged for this service when the state grants your company a Certificate of Formation. This recurring fee will be automatically charged to your account for each period the service is active unless you change your Registered Agent with the State or dissolve your company.

When will my order be processed?

Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.

How long does the incorporation process take?

Incorporation times vary from state to state. Feel free to contact us by email or at 877-777-0450 for information on specific state processing times.

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