It’s time to restart your Louisiana business if you’ve allowed it to stagnate. In order to avoid any future legal or financial issues, it’s crucial to carefully follow each step involved in reactivating a firm in Louisiana. What you should know is as follows.
Step 1: Assess Your Company’s Status You must be aware of the status of your Louisiana company before you may restart it. To do this, use the online database maintained by the Louisiana Secretary of State. If your company is labeled as “inactive,” you must provide the required documentation to restore its good status.
You must submit annual reports and settle any outstanding costs in order to renew your Louisiana LLC. Every year, between January 1 and April 1, these reports are due. You’ll be assessed a late fee and your company can be labeled as inactive if you miss the deadline.
In this regard, Louisiana does need the renewal of an LLC. LLCs must submit an annual report to the state and pay a $35 filing fee. Your LLC will be dissolved and you will no longer be protected by limited liability if you fail to renew it.
Dissolving a sole proprietorship is step four. The Louisiana Secretary of State will need to receive documents if you want to dissolve a sole proprietorship. Additionally, you must revoke any state or municipal licenses or permissions the business may have had. Your single proprietorship will be declared to have been dissolved once all essential procedures have been followed. Comparing LLCs and Sole Proprietorships in Step Five
Which is better, an LLC or a sole proprietorship? Depending on your company’s objectives and demands. With limited liability protection provided by an LLC, your personal assets are safeguarded in the event that your company is sued. Although a sole proprietorship is easier and less expensive to form up and run, it does not provide this protection.
A sole proprietor is eligible for a tax refund. Yes, if sole proprietors overpay taxes throughout the year, they are entitled to a tax refund. But keep in mind that sole owners must pay self-employment taxes, which can be more expensive than regular income taxes.
Finally, reactivating a business in Louisiana is a simple procedure that entails submitting documentation, paying fees, and taking any other procedures required to restore your company to good standing. To avoid any future legal or financial issues, it’s crucial to abide by the state’s rules and regulations while reactivating an LLC or dissolving a sole proprietorship.
You can complete and submit a Final Return to the Louisiana Department of Revenue in order to cancel a tax account there. You can also be required to present documentation, such as evidence of a business’s dissolution or termination. Before closing the account, it’s crucial to settle any outstanding tax debts. The webpage for the Louisiana Department of Revenue has more details and directions.