Another Corporation Re-Instated with Secretary of State

Corporation officers came to office. Their corporation (1) had not file annual reports with the secretary of state in several years.

(2) Had not had annual meeting of shareholders and directors in longer period.

Both are big no-no’s.

Just before we sent in the annual reports, N.C. Secretary of State administratively dissolves.

Finally we get to a live person in the department, reason—revenue non-compliance.

General Rule: if your tax returns to the State don’t reflect the return for the corporation (whether as separate, corporate/llc tax return or individual return), then the N.C. Department of Revenue will send a notice to the N.C. Secretary of State. When that happens, you get administratively dissolved. Read: you lose your corporate charter.

In this instance, they were talking about a tax return not received in the early 1990’s! Why did it take so long? And, in fact, client had filed that corporate return.

Call from CPA to N.C. Department of Revenue got it cleared up & the administrative dissolution order was rescinded. Still we had to file an “Application for Reinstatement following Administrative Dissolution” & pay a fee.

At least client is ready to roll.

Just remember three things: 1) file annual reports with Secretary of State by April 15 of each year, 2) file some form of  corporate/LLC tax return with N.C. Department of Revenue, 3) make sure you have annual minutes for meetings of Shareholders and Directors.

Call Kirk Sanders @ Sanders Law Firm, PLLC to help with your corporate and LLC needs. (336)724-4707

 

 

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