LLCs are undoubtedly one of the most popular business structures in the US due to some obvious known reasons. Still, there’s a common question that circulates among many business enthusiasts: How long is an LLC registration valid in the USA?
So, the good news is that LLC company registration in USA does not expire as long as the company complies with ongoing state requirements. However, one has to align and fulfill some criteria to ensure the goodwill and operational capabilities of an LLC.
1. Annual Reports & Fees
Annual report (or biennial report in some states) is one of the main aspects to keep in mind as these contain basic information about your LLC, such as:
- Business name and address
- Names of the members or managers
- Registered agent information
The frequency and fees for filing these reports vary from state to state. An additional franchise tax is included if you file it from Delaware or California. Not filing it on time will result in penalties and even administrative dissolution.
Learn More: Best way to setup an LLC
2. Dissolution and Termination
It doesn’t have a fixed expiration date but owners can dissolve their business whenever they want. Dissolution typically involves filing paperwork with the state.
The owners must follow the formal dissolution process so they can avoid penalties and liabilities for unpaid fees or taxes. At the same time, a state can also dissolve your LLC if you’re unable to meet its annual requirements, such as filing reports or paying taxes.
3. Good Standing Status
An LLC is considered in good condition if filing reports and paying taxes keep going timely. Maintaining good standing is critical if you plan to:
- Open a business bank account
- Apply for business loans
- Expand your business to other states
- Attract investors
You may need to take corrective actions in case of not able to maintain a good condition for your LLC, such as paying fines or back taxes. These can help one to restore it.
Learn More: Tax Benefits to form LLC Company Registration in USA
4. Registered Agent Maintenance
Every LLC in the U.S. must have a registered agent as their main role is to receive legal documents on behalf of the LLC. So, keep in mind that your LLC could also lose its good standing and face penalties if you are unable to main an agent for the same.
Plus, you must keep the registered agent information updated with the state at all times to maintain the validity of your LLC registration.
Conclusion
So, the main thing is that the LLC will remain active till you can manage and fulfill all the requirements continuously. Filing annual or biennial reports, paying franchise taxes, and maintaining a registered agent are some of the factors.
Moreover, If you want any other guidance relating to opening a in USA Company Registration or LLC Company Registration please feel free to talk to our business advisors at 8881-069-069.
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