Overview of Good Standing Status
To be in “good standing” means your business has met all legal obligations. The status can be returned by addressing how the business is out of compliance. Only active entities can have a good standing status.
Reasons for Losing Good Standing
A corporation or LLC loses good standing due to issues like lapses in annual reports or unpaid taxes. The specifics to reinstate depend on the state. But you’ll likely need to file for reinstatement to regain active compliant status.
Steps to Regain Good Standing
The status can be returned to Good Standing by addressing the noncompliance.
Importance of Certificate of Good Standing
A Certificate of Good Standing is crucial as it confirms that the business entity is duly registered and complies with state rules to operate its business.
Reinstating a Business
Reinstating a business in Illinois is reviving a dissolved or suspended company to regain its good standing and legally operate within the state once again.
Consequences of Not Being in Good Standing
Failing to maintain good standing can lead to personal liability, difficulties in securing financing, and potential dissolution of the business.
Obtaining Certificate of Good Standing in Illinois
It is essential to acquire a certificate of good standing to establish your legal status and credibility in the eyes of the law and potential partners.
Illinois Franchise Tax Overview
For subsequent years, the tax is 0.1% for the preceding twelve-month period, with a $25 minimum and a $2 million maximum, plus 0.1% of the basis.
How to Dissolve a Corporation in Illinois
To dissolve a corporation in Illinois, the board of directors or members need to make a decision and follow specific dissolution procedures.