Reinstating a company is the process of returning a company that is in default or revoked status back to good standing within the entities state. Normally, a Corporation or LLC loses “good standing” because it has not filed it’s annual report, biennial report or not paid necessary fees to their state of formation. When a Corporation or LLC is not in good standing, the entity is not permitted to conduct business, other than the business of dissolving the entity or reinstating.
Reinstatement is an option for owners that want to continue using the same entity and it’s bank accounts and Federal Tax ID number. In addition, by reinstating your entity, you will continue to have the liability protection of a Corporation or LLC.
If your Corporation or LLC is not in good standing, The NestEggg Group, Inc.. can assist you with reinstatement of your entity. We can include special resolutions and provisions in your Articles of Reinstatement authorizing an Indemnification Agreement which would trigger important protection requiring the Corporation or LLC to indemnify and hold harmless Shareholders, Directors or Officers of the Corporation or the Members or Managers of the LLC from any actions taken on behalf of the Corporation or LLC during the period of time the Corporation or LLC was not in good standing and after reinstatement.