Understanding Active Noncompliance in Georgia and Related Issues

A business entity registered in Georgia is said to be in active noncompliance if it doesn’t submit the requisite yearly reports on time or pay the necessary fees. Limited liability companies (LLCs), corporations, and partnerships are a few examples of such entities. The Secretary of State’s office in Georgia is in charge of monitoring business registration and compliance, and it imposes sanctions on those that don’t comply.

The Secretary of State’s office will issue a notice of noncompliance if a business entity fails to submit annual reports within the deadline, giving the entity 60 days to comply. The state will reserve the entity’s name and label it as “not in good standing” if this is not done. The entity will also be charged fines, such as a $150 reinstatement fee and a $25 late fee for every month of noncompliance.

Business owners in Georgia have two options for submitting yearly reports: either online through the Secretary of State’s portal or on paper. The most practical choice is the web portal because it enables real-time processing and compliance validation. Basic company details including name, address, registration agent, and officers or directors must be included in the annual report.

The registered agent of the company, who is appointed to receive legal notices and other official communications on the company’s behalf, is also responsible for filing yearly reports. The company must appoint a new registered agent and notify the Secretary of State’s office of the change if the registered agent is unable to perform their obligations or is no longer available.

In order to dissolve an LLC in Georgia, you must submit articles of dissolution and pay a $100 fee to the Secretary of State’s office. The LLC must pay any outstanding debts and taxes, as well as get the requisite shareholder or member approvals, before it may file for dissolution. Failure to do so could subject the owners to personal accountability and legal action from creditors.

The failure of a business entity to submit annual reports or pay the requisite fees within the allotted timeframes is referred to as active noncompliance in Georgia. Annual reports may be submitted by business owners electronically or on paper, and the registered agent is responsible for filing them. In order to dissolve an LLC in Georgia, articles of dissolution must be filed, and all existing debts must be paid. If you don’t follow these rules, you risk fines, liability, and losing your good standing.