A corporation is a recognized legal person with the power to bring and receive lawsuits. However, a corporation loses its capacity to file lawsuits when it ceases to exist. When a corporation in Florida neglects to submit its annual report to the state, pay its yearly fee, and keep a registered agent, it is deemed inactive. This article will examine the repercussions of having an inactive corporation in Florida as well as the correct way to dissolve a limited liability business. Could You Stop Your Business?
A corporation can opt to stop operating, even if it is not technically allowed to “pause” its operations. This indicates that although the company has not been dissolved, it is also not currently operating. For businesses who need to suspend operations due to monetary issues or other factors, this can be a good alternative. It’s crucial to remember that a corporation may experience consequences, like having its corporate status revoked, if it is inactive for an extended period of time.
There are various steps involved in dissolving a limited business in Florida. To dissolve the corporation, the company must first submit the necessary documentation to the state. This entails submitting final tax returns and articles of dissolution. Additionally, any unpaid taxes, including corporate income tax, must be paid by the corporation. Before the corporation can be dissolved, the company must pay any unpaid corporate income taxes.
Although it is feasible to dissolve a limited company without an attorney or accountant’s help, it is strongly advised that you do so to guarantee that the procedure is carried out properly. You can prevent potential legal problems or challenges by getting sound counsel and direction on the right ways to dissolve a corporation from an attorney or accountant. What Is the Time Frame for Closing a Company?
The complexity of the corporation’s financial status and the volume of paperwork required are two variables that affect how long it takes to terminate a business. In Florida, it typically takes a few months to dissolve a corporation legally. By hiring a professional service that specializes in business dissolutions, the procedure might be accelerated.
Finally, even if an inactive business cannot be sued in Florida, it is crucial to close a limited company in accordance with the right processes. The process can be correctly completed and potential legal problems can be avoided by seeking professional counsel. A company must be dissolved in order for the business to be lawfully disbanded and released from all debts and tax obligations, which can take some time.