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Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24870
Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
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I have a small business which is incorporated and in Dec. of

Customer Question

I have a small business which is incorporated and in Dec. of 2008 I sent in my anual report and $100.00 fee to the secretary of state. Two weeks later they sent it back along with the check and a letter stating that they could not accept it due to the fact that I owed money to the Dept. of Revenue for sales tax. Unfortunately this is true. I do make the monthly payments along with penalties and interest but I am always around two months behind. The sales tax due is around $20,000.00 each month. I called Sec. of State and they said they will accept the report when the sales tax became current. Then in June of '09 I get another letter from them stating that they have dissolved the corporation. I also was informed that the business is "not in good standing with the state'. Q: I'm very concerned what this means. Can I still run business as usual and will I be able to reinstate the corporation when the sales tax becomes current? Thank You!
Submitted: 6 years ago.
Category: Business Law
Expert:  Law Pro replied 6 years ago.

No, you can't - the business is dissolved and your incurring personal liability running the business as usual.

 

Yes, you can reinstate the corporation once the sales taxes become current.

 

However, continuing to operate the business under the pretense of the corporation places you at personal risk if anything were to go wrong.

 

 

 

 

 

Please click on the ACCEPT button for my answer so that I receive credit for assisting you. You may continue to ask follow-up questions after accepting. If the information is helpful, I would very much appreciate positive feedback. Bonuses are also appreciated.

Customer: replied 6 years ago.

Ok, I just to clear things up, even though my business is not currently a corporation, am I still legally able to stay in business until the corporaration is reinstated?

Expert:  Law Pro replied 6 years ago.

No, your personally liable for the operations of the business. In fact, your being fraudulent if you do. The business is dissolved. Until your business is reinstated - you shouldn't be operating under the false pretenses of the corporate business form.

 

 

 

Please click on the ACCEPT button for my answer so that I receive credit for assisting you. You may continue to ask follow-up questions after accepting. If the information is helpful, I would very much appreciate positive feedback. Bonuses are also appreciated.

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