Got a letter today saying my LLC was administratively revoked. I had no idea that was even a thing. I've been paying my taxes and thought everything was fine. Apparently I missed some annual report? Has anyone dealt with this? I'm kind of panicking because I have a couple of client contracts and I'm worried they're void now.
Business Compliance
I didn't realize the state could revoke my LLC status
It's usually an annual report or registered agent issue. State sends notices to whatever address you had on file. If you moved and didn't update it, you never see them. Check your state's business portal to see what was missed. You can often file reinstatement online.
Contracts aren't automatically void. The LLC is a separate legal entity but if its status is revoked it loses the liability shield and can't do business. Reinstatement usually fixes the retroactive gap in many states.
How long has it been revoked? Some states have a grace period.
This happened to a friend of mine. Turned out his registered agent had resiGned and he never knew. The state mailed the notice to the agent's addiress, not his. By the time he found out, it was six months later. He had to pay a penalty plus file two years of reports. Not the end of the world but annoying. Go online and pull your filing history.
OP, this is common. States make money on reinstatement fees. Its a compliance trap for small businesses.
It's not really a trap. The rules are published. People just don't read them.
DustyBoxcar has a point though. The notices go to the registered agent address, and if that agent is a service you stopped paying, you're flying blind. The state doesn't hunt you down. i set a calendar reminder every year now for the report.
Call the secretary of state offic directly. They're usually helpful. Ask for the exact steps and fees for reinstatement. Don't rely on third party sites that charge extra.
This is why I use a registered agent service. Costs like $50 a year but they forward everything. Worth it.
Also check if your state requires a statement of information or biennial report. Some states have different names for the same thing. And update your address with the state and the IRS separately. They dont talk to each other.
The IRS is a whole other mess. If your LLC was revoked, your EIN still exists but you may need to update your responsible party, though.
I went through this last year. Reinstated online in about 20 minutes. Paid a $100 penalty. My contracts were fine. Don't panic. Just handle it this week.
What state are you in? The process varies a lot. Some states are way easier than others.