I was investing a couple of years ago and I need help with something.
Currently, my LLC is revoked and will cost me 1500 bucks to reinstate. However, I can start another LLC for a third of this (500).
I’m looking at it from a cost point of view. I’d like to do the obvious, but don’t know if I should pay 1500 dollars to reinstate my old LLC or start a new from scratch???
Your input would be very much appreciated!
Thanks!
is the old LLC “in business?” have bank accounts? filing tax returns? own property?
It doesn’t own property. Does have a bank account. But it’s a cost issue. 1500 or 500.
there is no reason why you “must” reinstate the entity if it no longer has any activity.
note that if you do not properly terminate the entity, there could be tax/penalty issues from the state. Avoiding these would be the only reason to deal with the old entity.
however, I encourage you to look at the bigger picture:
it’s not just a cost issue; it’s a “did the entity ever engage in any activity that may have continuing legal liability that might impair any new business that the entity engages in” issue.
If there are any skeletons in the closet, there may be good reasons why you do NOT want to continue in the old entity, which would affect your decision irrespective of cost.
Thank you for your thoughts!
It’s just a cost issue right now. I guess doing the right thing would be to "unrevoke, then dissolve.
Initially I was planning on dissolving it all together and starting from scratch (plus it’d be cheaper) but when I found out that in order to dissolve my company I need to pay to un-revoke it first.
That’s when It made more sense to save 1000. I think I’ll just keep it going. :bs