Checking on the status of an LLC shouldn't be too difficult. However, it is much more complicated than asking the secretary in your company to provide this information.
Here is how you can understand more on how to check on the status of your LLC.
What is an LLC Status?
LLC status refers to the background of your LLC. You can check on your LLC's history, its members, and whether or not there are any pending filings you need to make with regards to your LLC.
How Can I Know My Status?
To get more information on the status of your corporation, it is best that you contact the secretary of state where your LLC was created and seek legal services from a credible law firm.
Some states provide online account tracking to check the status, but there are plenty of others that only allow you to track everything after you send them a request for this information.
- You can access an LLC's status by either calling or sending a letter to the Secretary of State. Most companies only allow you to do this after you submit a request for the information and a fee.
- You can also send a request for account tracking by sending an email or letter to the state office. However, this process may take time, and some states actually ask for fees every time you request for information.
- Call the state's office and ask to speak to a representative to help track down this information. However, depending on the time of day you call, it may take days or weeks before you get in touch with someone to check the status.
Request Certificate of Good Standing
If you want further information on your LLC's business history, you can request a Certificate of Good Standing.
This is issued by the secretary of state where your LLC was created. It basically states that your LLC is in better standing, meaning it has no pending filings or issues that will affect its status as an official business entity.
You can request this certificate by sending a letter or email to the Secretary of State or the registered office's address.
Regain Good Standing for an LLC
If your LLC is in good standing as per the state regulations but have been inactive for three consecutive years, it will be considered as being revoked.
Send legal documents via registered mail to your Secretary of State and request to reinstate your status.
It also applies if you have filed a Notice of Dissolution and your LLC has been revoked for at least three years.
Benefits of a “Good Standing” Status for an LLC
If you are in good standing with the state regulations, your LLC has ensured protection under the law.
Other than the legal and liability protection it provides, a “good standing” for a limited liability status for an LLC can help provide more credibility to your business.
You will have the ability to pursue new business opportunities since you are legally recognized as an established company with a certificate of good standing.
Your LLC is considered an official business, and it can be taxed accordingly, which means that your days of dealing with complicated paperwork for tax purposes are over.
Disadvantages of Having a “Revoked” or “Dissolved” Status
Your LLC will have a “revoked” or “dissolved” limited liability status if it fails to pay certain fees on time.
If you are dealing with an LLC that has a revoked or dissolved status, you will not be able to do the following:
- Represent your company in any legal disputes.
- Apply for business permits and licenses.
- Perform small business loans.
If you are planning on selling anything that has your LLC's name associated with it, remember that this can actually jeopardize your business' credibility if its status is revoked or dissolved. Remember to seek legal services or advice from an attorney or law firm.
Request Certificate of Good Standing
If you want further information or details on your LLC's business history, you can request a Certificate of Good Standing.
This is issued by the secretary of state where your LLC was created. It basically states that your LLC is in good standing, which means it has no pending filings or issues that will affect its status as an official business entity.
You can request this certificate by sending a letter or email to the Secretary of State where your LLC entity was created.
How Do I Check on the Tax Status of My Business Entities?
If you are wondering why your LLC's tax status has changed, it is because you may have recently filed Form 8832 (Conversion to Corporation) or Form 2553 (Election by a Small Business Corporation).
How Much Does It Cost to Check Up on an Status?
The fees for registering a limited liability company will depend on the state where you registered your business. In general, these fees can range from $100 to as much as $800.
A limited liability company's good standing status is a must for any business owner, which means that you have to ensure that your LLC stays active and avoids revocation at all costs.
If there ever comes a time when your LLC loses its “good standing” status, you should take immediate action by sending a letter requesting reinstatement.
Remember that there is always a process involved in getting this status back, and it can be done with enough time and effort on your part.