If your business lost good standing with the state, you’re not alone. It happens frequently, usually because of a missed filing, an unpaid fee, or a lapse in communication. The good news is that in most cases, you can get your business back on track. The process is called reinstatement or reactivation, and each state handles it a little differently.
This guide walks you through what reinstatement means, what to expect, and how to avoid bigger headaches down the road.
What Reinstatement Actually Means
When your business is in “good standing,” it means you’ve met the state’s basic requirements. That usually includes filing annual reports, paying franchise taxes or fees, and keeping your registered agent and contact information up to date. If any of those things are missed, your business can lose good standing — and in some cases, be administratively dissolved or revoked by the state.
Reinstatement is how you bring the business back to life. But it’s not always as simple as submitting a single form. Some states require extra paperwork, tax clearance, or back payments before they’ll let you reinstate your business.
What the Reinstatement Process Looks Like
Let’s look at how a few major states handle reinstatement:
| State | Reinstatement Process | What You’ll Need to Do |
|---|---|---|
| New York | Consent to Reinstatement via Tax Department | File back tax returns, pay all fees, and get approval from the Tax Department before you can reinstate with the state |
| California | Application for Certificate of Revivor | File missing returns, pay back taxes, and receive approval from the Franchise Tax Board before filing with the Secretary of State |
| Delaware | Certificate of Revival | Submit a revival form and pay all unpaid franchise taxes and penalties for every year since the business was canceled |
As you can see, the steps and requirements vary from state to state. Some states require tax clearance before you can even apply to reinstate. Others require full payment of past-due franchise taxes, even if your business has been inactive for years. In general, the longer your business has been out of good standing, the more complicated the process can be.
Tips to Reinstate Your Business Successfully
- Act quickly. The longer you wait, the more penalties and paperwork you may face.
- Start with taxes. If your state requires tax clearance, handle that first before submitting any forms.
- Catch up on filings. Make sure you file every missing report or return. Missing even one can hold up your reinstatement.
- Keep proof of everything. Save copies of forms, payments, and any letters from the state.
- Check your status after reinstatement. Make sure your business is fully restored before signing contracts or applying for loans.
How URA Can Help
If you’re not sure where to start, or just want to make sure it’s done right the first time, URA can help. We’ve helped thousands of business owners get back in good standing — and stay that way using our Annual Report Services. We’ll walk you through what your state requires, prepare and file the right forms, and make sure nothing falls through the cracks.
Don’t let a lapse in compliance derail your business. Reinstatement is possible, and we’re here to help you get it done. Ready to get started? Give us a call at (855) 236-9172.
