If you own a business in Colorado, you might be asking if you can revive an LLC that has been disbanded. You can, is the response. However, the procedure might be fairly difficult, therefore it’s critical to comprehend what you must accomplish to get your LLC reinstated.
You must submit an Application for Reinstatement and pay a fee in order to reinstate your LLC in Colorado. The cost depends on how long your LLC has been dissolved and is set by the Secretary of State’s office in Colorado. The cost is $100 if your LLC has been dissolved for a shorter period of time. The cost is $500 if it has been dissolved for more than a year.
You must also submit all past-due annual reports and pay any associated costs on top of the fee. Additionally, you’ll need to submit any required tax forms and make any owed tax payments. It’s vital to remember that before you can reactivate your LLC, you must make sure that any back payroll taxes are paid if you have employees.
Your LLC will be restored once you have submitted all the required documentation and paid the associated fees. To resolve the cause of the involuntary dissolution of your LLC, you will need to take additional action.
Your EIN (Employer Identification Number) may need to be reactivated if you’re reinstating your LLC. Call the IRS Business & Specialty Tax Line at 800-829-4933 to do this. Your business name, EIN, and the justification for reactivating your EIN must be provided. What Happens If Your LLC Loses Money?
You must submit annual reports and pay any related costs even if your LLC isn’t making any money. Your LLC will be dissolved if you don’t comply with this. You can still reactivate your LLC even if it has been dissolved as long as you submit any outstanding annual reports and associated fees.
You can deduct a range of company expenses on your taxes as an LLC owner. Rent, utilities, office supplies, and employee pay are included in this. To appropriately report all of your business costs on your tax return, it’s crucial to keep track of them throughout the whole year.
You have the choice to pay yourself a salary as an LLC owner. However, it’s crucial to take into account how doing so will affect your taxes. Payroll taxes must be withheld from any salary you pay yourself and paid to the IRS. Additionally, you’ll have to submit quarterly payroll tax forms. If you’re unsure whether paying yourself a salary through your LLC is the best option, you should consult a tax expert.
A sole proprietorship is simple to establish and end because the owner is not thought of as the sole legal entity. The owner has complete control over the company and is responsible for all of its liabilities. As a result, most states do not have formal filing requirements or costs for establishing or dissolving a sole proprietorship.
In general, closing a sole proprietorship is simpler than dissolving an LLC. You can just stop functioning and close the business because, as a sole proprietor, you are personally liable for it. Nevertheless, you might need to revoke any licenses or permits you have obtained and inform any clients and creditors of your closure. To make sure that all essential actions are completed, it is still advised to consult a legal or financial expert.