How To Do an LLC Renewal
The paperwork required for filing reports annually may seem overwhelming, especially if you’re new to it.
However, much like the LLC application process, LLC renewals do not have to be difficult, especially if you do it virtually.
Here is an easy guide of how to get an LLC renewal done in 3 easy steps.
1. Pre-application Checks
There are a few things you need before filing for an LLC renewal report. These include:
- Knowing your company document number.
- Ensuring that all your registration fees are up to date.
- Ensuring you have a valid mode of payment.
If you need to make changes to your company information during this process, you’ll need to provide more company details.
These include a physical address, registered agent details, mailing address, and your company’s email address.
In case you can’t trace your company number for any reason, you can always search for it in your state’s database.
A valid payment mode is also a crucial requirement that will help your LLC renewal process go smoothly.
Depending on which way you choose to submit the application, there are recommended modes of payment that vary by state.
If you decide to file for the report online, here are some common valid payment methods:
- Credit card
- Debit card
The recommended modes payments for submitting applications by mail are:
- Approved money vouchers
- Money orders
Your payment method will be rejected during the LLC renewal process if it’s not valid.
2. Choose Your Preferred Renewal Period
An LLC renewal is usually done annually. However, some states provide a multi-year option for registration.
As a company, you may choose to file for an LLC renewal annually, biannually, or longer depending on what your state allows.
Once you have made this decision, you can then proceed to the next step, which is the actual registration process.
3. Register Online
Although sending your physical registration by mail is an option, filing your LLC renewal virtually is the easy way to go.
For online registration, here’s a step-by-step guide:
- Go to the Secretary of State’s website.
- State your business type, which, in this case, will be a Limited Liability Company.
- You may update the information about your company at this stage. This includes details such as names of company officers, or the registered agent.
- Follow the rest of the instructions as required.
- Make the payment using any of the valid payment modes.
- On completion, you’ll receive a confirmation receipt for your payment. This marks the completion of your LLC renewal process.
If you choose to send your LLC renewal application by mail, follow this process:
- On your state’s Secretary of State website, search for your business.
- Print out the LLC renewal form.
- Fill it out manually and mail it to your state offices along with your payment.
Make sure to stamp your mail with the right date to avoid attracting a penalty.
You will receive your updated LLC renewal document and receipts by mail within a few weeks confirming the completion of the renewal process.
What Happens If You Do Not File For Renewal?
Failure to do an LLC renewal after receiving a notice from your state will lead to your company’s administrative dissolution.
Research by Michigan Law found that startups that do not adhere to regulatory rules risk losing their agility. The time spent in restoring good standing impedes a company’s growth.
If your company gets dissolved, along with its right to operate, it loses its name. To be reinstated, the company has to recheck the business names in the state. This is to ensure the name is not taken or is still valid.
Once verified, you can then pay the reinstatement and renewal fees before your company regains its status.
How to Restore a Closed LLC
If for any reason your company couldn’t file the LLC renewal report, you can apply for a certificate of restoration of good conduct.
Suppose that your LLC renewal is overdue for many years. You will need to file reports for all these years. You’ll also have to pay the amount accrued over these years and a fee for restoration of good conduct, otherwise known as a reinstatement fee.
Here is the step-by-step LLC renewal process for voided businesses:
- Head over to your state’s Secretary of State website.
- Provide your company’s PIN or identification number.
- Once you’re logged in, select the Certificate of Restoration of Good Standing form.
- Fill out the form.
- Return to the forms page and fill out the renewal details for the previous years that were not submitted.
- Make the payments for each application. You’ll receive different receipts for each payment.
- Once done, submit your restoration certificate application and each LLC renewal application.
- Your applications will be reviewed and processed within a specified period, which varies from state to state.
Ready to Start Your LLC Renewal Process?
LLC renewals are simple, especially if you choose to do it online. As long as you have the right documents, as listed above, you should be well on your way to doing it quickly and smoothly.
With the information included in this post, you won’t have to risk going out of business. Just use this guide and keep your business running smoothly.
Even if you do go out of business for some reason, you can always restore your business and rebuild it. It may cost you a little more than having your usual LLC renewal, but it’s possible.
Hopefully, it won’t come to that if you follow this guide. All the best!
Brett Shapiro is a co-owner of GovDocFiling. He had an entrepreneurial spirit since he was young. He started GovDocFiling, a simple resource center that takes care of the mundane, yet critical, formation documentation for any new business entity.