ANNUAL REGISTRATIONS AND AVOIDING DISSOLUTION
Once a year Georgia LLCs and corporations must file their annual registration. If you’re a business owner and fail to do so, your company will be administratively dissolved. So what’s the big deal?
Legally speaking, administrative dissolution means business owners lose the “liability shield” protecting them from the company’s debts. In other words, company creditors can sue the business owners directly – going after their personal assets – to satisfy unpaid loans, leases and other debts of the company. No bueno.
Furthermore, in years past, a business could go 2 to 3 years without filing before the Secretary of State (SOS) would dissolve the company. Not anymore. Now, each fall (usually September) the SOS conducts an annual sweep, “purging” all non-compliant businesses.
Just received a Secretary of State notice stating your company was “administratively dissolved?” Don’t delay – but don’t freak out either. Through the proper paperwork and a good attorney (and payment of late fees, of course), reinstatement can be rather routine.
Bottom line – ensure your annual registration is filed before the deadline. If you’re late, quickly reinstate.