If you’re in business, you’ve probably heard the phrase “SOS suspended” at least once. The Secretary of State (SOS) office uses this phrase to denote that your company is no longer in good standing. When a company’s SOS is suspended, it signifies that at least one state criterion has not been met. We’ll delve deeper into the meaning of SOS suspension, its causes, and solutions in this article.
The Secretary of State’s office has taken action to suspend the legal entity status of a business when it declares it to be SOS suspended. This typically occurs when a company neglects to meet state regulations, such as failing to submit yearly reports, pay fees, or provide an address for the registered agent. A company that has its SOS suspended loses its legal standing and is unable to perform any business until the suspension is lifted.
There are various causes for an SOS suspension of a company. The failure to submit annual reports is one frequent cause. The majority of states demand that businesses submit an annual report to inform the state of any changes in ownership or location information. The state has the authority to revoke a company’s legal entity registration if it fails to submit its annual report.
Failure to pay fees is another frequent cause of SOS suspension. For their legal entity status to be maintained, firms are typically required to pay specific fees. The state has the right to revoke a company’s legal entity status if it doesn’t pay these fees.
If your company’s SOS has been revoked, you must move right now to correct the situation. Finding the cause of the suspension is the first step. You can take the appropriate actions to resolve the problem once you are aware of the cause. For instance, if your company was shut down because you didn’t submit annual reports, you’ll need to submit the reports and pay any related fines.
You might occasionally need to take further action to resolve the problem. For instance, you’ll need to appoint a new registered agent and update your business records with the state if your company was suspended for failing to furnish a registered agent address.
You must get in touch with the Secretary of State’s office to request reinstatement when you’ve done the appropriate actions to resolve the problem. This often entails submitting an official request and paying any fees owed. You will be able to resume business operations as soon as the state grants your request, restoring your company’s legal entity status.
When dealing with commercial companies, you may also come across the phrase “converted out.” This phrase is used when an LLC (limited liability company) changes its legal status to one of a corporation or partnership, for example. An LLC that is converted out ceases to be an LLC and changes its legal status.
Typically, the conversion procedure include submitting documentation to the state and paying any applicable costs. The LLC’s legal status is changed to that of the new company type after the conversion is finished. Before changing the entity type of your LLC, it’s crucial to speak with a legal or tax expert because this may have effects on taxes and liability protection. In conclusion, SOS suspension is a major problem that could have catastrophic repercussions for your company. If your company’s SOS has been suspended, you must act right away to address the problem and ask to have it reinstated. On the other side, converting out signifies a change in the legal entity form of your LLC, which may have consequences for tax and liability reasons. It’s crucial to speak with a legal or tax expert if you’re thinking about changing the entity type of your LLC in order to make sure you fully comprehend the implications of the change.