Titles added:
- Overview of Administrative Dissolution
- Asset Distribution after Dissolution
- Reinstatement Process and Consequences
Formatted Text:
Overview of Administrative Dissolution:
Administrative dissolution is an involuntary cessation of a corporation’s existence by a government authority due to failure to comply with statutory requirements such as filing annual reports, paying franchise taxes, or maintaining a registered agent.
How can a company be reinstated after administrative dissolution? To resume operations, a reinstatement and certificate of existence from the Secretary of State is required. Banks, lenders, and organizations frequently request this certificate before doing business.
Asset distribution after dissolution: When dissolved, assets become "bona vacantia" – ownerless property. They include property, land, mortgages. What causes administrative dissolution? Failing to file annual reports, maintain a registered agent, notify of registered agent/office changes, resignations, or pay franchise taxes can trigger administrative dissolution. The state agency sends multiple reminders before proceeding.
Reinstatement Process and Consequences:
What are the consequences? The entity’s existence is terminated, and it loses the right to conduct business. To resume operations, reinstatement and a certificate of existence from the Secretary of State are required.
What does it mean when a company is administratively dissolved?
Administrative dissolution is an involuntary process used by the Secretary of State to dissolve a corporation, LLC, or other business entity if it fails to file necessary documents. What does administrative dissolution mean? It means the state takes away an entity’s rights and authority for not complying with requirements like filing annual reports.
To resume operations after administrative dissolution, reinstatement and a certificate of existence from the Secretary of State are required. Banks and organizations frequently request this certificate before doing business.
What causes administrative dissolution? Failing to file annual reports, maintain a registered agent, notify of registered agent/office changes or resignations, or pay franchise taxes can trigger administrative dissolution. The state agency sends multiple reminders before dissolving an entity.
What does administrative dissolution mean in North Carolina? Administrative dissolution occurs when a North Carolina business entity fails to perform duties described in statute, like filing annual reports.
What happens to assets after dissolution? When dissolved, assets become "bona vacantia" – ownerless property. They include property and land.
Is a registered agent the same as a statutory agent? Yes. The Secretary of State can dissolve an entity for failing to file annual reports, notify of registered agent/office changes or resignations.
What duties remain for a registered agent after administrative dissolution? Duties as a registered agent do not stop when the company is administratively dissolved. As long as you are the registered agent, you must accept and forward mail to the company.
How can I reinstate a dissolved LLC in North Carolina? Fix the problem that caused the dissolution, like overdue annual reports which must be filed. You will also have to pay all annual report fees. Then apply for reinstatement with the Secretary of State.
What does it mean if my corporation was "administratively dissolved"? The state has dissolved the entity for failing to comply with requirements like filing annual reports. To resume operations, you must fix the underlying problem and get reinstated by the Secretary of State.