Reopening a closed private limited company requires submitting a revival application to the National Company Law Tribunal. Seek professional assistance to ensure legal compliance for the approximately 4-month restoration process.
State-Specific Procedures for Reopening a Business
Whether recently closed or closed for a while, you can successfully reopen by following state-specific procedures. Many businesses are preparing to resume operations after coronavirus closures.
To reinstate a suspended corporation in California, it must be revived. Shareholders of a dissolved S-corp only receive asset distributions after paying debts. A close corporation can apply for S-corp status if distributing profits proportionately.
To restart a closed business, contact the Secretary of State about reinstatement. Once restored, you may apply for a grant to help shareholders reclaim money. It is possible to restore a dissolved company you were never part of if you were a creditor owed money.
Staying in touch with customers makes communication more natural when reopening. Reinstating a California LLC requires filing paperwork and possibly reinstatement with the Franchise Tax Board.
If a bankrupt company owes you money, debt does not go away. The court order restoration process can be lengthy and costly. To restart a dormant company in the UK, register for Corporation Tax and file accounts.
To restart a closed business, make a restart after bankruptcy or without one. Set closed dates and reopen later. Properly close down a business by setting a date, filing final forms, handling revenue and expenses, and deactivating the EIN after final returns.
What does it mean if your LLC is not in good standing? “Not in Good Standing” means the business entity is not complying with state laws and responsibilities. Reactivate an EIN to maintain LLC status. Most states provide online databases to check status and download Certificates of Good Standing.
Noncompliance consequences include loss of court access and the inability to sue or be sued. LLCs should stay compliant by filing reports and paying fees to remain in good standing. Voluntary dissolution is when a corporation or LLC dissolves without a mandate.