It’s that time of year again. If you’re asking this question, chances are high that you’ve probably received one of the wonderful blue postcards issued by the North Carolina Secretary of State. At this point, if you’re not a corporation with a different tax year, perhaps you’ve actually received a certificate of dissolution. Though it’s not the best situation to find yourself in, it’s happened to many upstanding business owners across the country at some time or another and fortunately in North Carolina, it’s something you can fix.
Administrative dissolution is a special type of dissolution that can be done without any court proceeding if certain criteria are met. It doesn’t kill your company, but it can hurt you and cost you the some of the protections you gained by incorporating in the first place.
So how can it happen? Though the full range are listed by statute for both LLCs and corporations most often it’s because you failed to file your annual report or have outstanding fees, penalties, or taxes due to the government. Luckily for business owners of all kinds, each of these issues can be corrected and if you do so within sixty (60) days of receiving the blue postcard, you can stop the dissolution from ever actually taking effect. Even if you’ve already been issued a certificate of dissolution it’s still not too late. By fixing the problems that caused you to be dissolved – including updating your address and other contact information if you never received the notice and/or certificate in the first place – and applying and then paying a reinstatement fee, you can get your business back on track.
If you’ve learned your business has already been administratively dissolved, we can help.
Follow the Garrett, Walker, Aycoth and Olson business blog or contact one of our experienced Greensboro business attorneys at (336) 379-0539.