As the owner of a corporation or an LLC, you are required by your state to document every major business activity. If your records are not in order and you are sued, the court may not recognize you as a legal entity. In fact, it could be the most dangerous game you can play in the corporate world today and so many business owners are unknowingly playing it.
If you want the advantages of having a corporation or an LLC, you must follow the legal requirements for running it. If you do not abide by the rules, you could find your business stripped of its legal status and the benefits of that status, such as:
- Limited Liability
- Tax Benefits
- Employee Fringe Benefits
- Commercial Loans and Capital Investment
- Business Credibility
- Perpetual Existence
We provide an easy solution for documenting every major business activity as required by the state.
Annual/Biennial Reports and Filings
Annual/Biennial Reports and Filings: Most states require that an informational report must be filed (and fees paid) with the secretary of state at least annually. Failure to file can result in administrative dissolutions or suspension, depending on state law.
From time to time, Corporations and LLCs may need to amend their original articles to add, change, or delete provisions. Like the original articles, amendments to the articles must be filed with the state.
A corporation doing business in one state though chartered or incorporated in another state is a foreign corporation (which means it is now legally qualified to conduct business in each state chartered).
The dissolution of a corporation or LLC is the termination of its legal existence. While there are several ways to dissolve an entity (voluntary or involuntary) we highly recommend utilizing proceedings for winding it up under the law. Additional state fees may be required if your company is delinquent or revoked.