Businesses that legally operate in Connecticut are required to file an annual report with the Secretary of State’s office. This important document keeps your business in good standing and ensures that the company will be legally recognized. Not all businesses understand the importance of filing an annual report. But the consequences of failing to do so are significant. You can count on a trusted Connecticut business law attorney to guide you and your organization. Here are some of the most important things you should know about the annual report.
Who has to file an annual report?
All corporations, non-stock corporations, limited liability companies, limited liability partnerships, and limited partnerships must file an annual report. The report can be filed online. There is a fee to do so, the amount of which is set by statute. The fee varies by business type and whether the company is in-state or out-of-state (foreign).
If you have registered your business organization with the state, you will receive a reminder to file the annual report. Expect to receive this reminder about one month before it is due. If the business has an email on file, the state will send a notice to the email address. Otherwise, your company should receive a postcard notice at the business mailing address on file.
What happens if you don’t file the report?
If you don’t file your annual report, the State of Connecticut may administratively dissolve your business. You also cannot obtain a Certificate of Legal Existence. Without this, your company’s ability to transact business may be jeopardized.
If you have received notice of the state’s intent to administratively dissolve your business, quick action is essential. You have 90 days to avert the dissolution of your business. Avoiding this penalty requires filing all past-due annual reports. You may be able to take steps to reinstate your business if it is dissolved. A Connecticut business lawyer can help with this process (see below for details).
What are the effects of administrative dissolution?
Once a Connecticut business has been administratively dissolved, it is considered by the state to be forfeited. When this happens, another business entity can seize upon its name. This could have devastating effects on your company. For one, any reputation you generated with the public through your business will be lost. Also, another company can essentially take over your brand. If you’ve invested time and money in developing your company’s unique identity, this will be forfeited. And all because of not filing the annual report.
Can I reinstate my business?
If you’ve been administratively dissolved for failure to file your annual report, you may be able to reinstate it. Whether you can depends entirely on the type of business entity you have and why it was dissolved. For instance, an LLC can be reinstated only if it was not dissolved by court order. On the other hand, corporations may reinstate only if they were administratively dissolved.
You may reinstate it, but the name of your company is no longer available, it will have to be changed. This may be done at the time of reinstatement by amendment to the certificate of organization or incorporation. Let a Connecticut business law attorney assist with this step.
We’re Ready To Serve The Legal Needs Of Your Connecticut Business
Have questions about annual reports, dissolution, or reinstatement? Ask the team at Aeton Law Partners. We help Connecticut companies handle their legal matters so they can focus on doing business. Reach out to us today to learn more.