Reinstate a Business in Illinois | A Step-by-Step Guide

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Reinstate Illinois Business

Running a business or forming an LLC in Illinois can be a rewarding yet challenging experience. When operating a business, unforeseen circumstances may arise, leading to the suspension or dissolution of the entity. If your business has been suspended or dissolved in Illinois, you do not need to worry. This guide will provide a step-by-step process to Reinstate your Business in Illinois and get back on track.

Webinarcare Editorial Team will help you easily reinstate your Illinois business. You must be guided by all the factors gathered in this article.

How to Reinstate a Business in Illinois

Understanding Dissolution and Suspension

Before diving into the reinstatement process, it’s essential to understand the difference between dissolution and suspension.

Dissolution

Dissolution is the legal termination of a business entity. This can happen voluntarily by the owners or involuntarily by Illinois due to non-compliance with state laws and regulations. When a business is dissolved, it must cease all operations and settle outstanding debts and liabilities.

Suspension

The state can suspend a business entity for various reasons, such as failing to file Annual Reports or paying taxes. When a business is suspended, it loses its right to conduct business within Illinois, and the owners may be personally liable for any debts or liabilities incurred during the suspension period. Hiring a Registered Agent for your documents to be compliant is very important. You could check out the Best Illinois Registered Agent Services in Illinois.

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How to Reinstate a Business in Illinois

In Illinois, reinstating your business needs a lot of preparation, more specifically if it is located in Springfield. To be aware and prepared, we have gathered information on the steps to reinstate your Illinois business. If it is manageable to Dissolve a Business in Illinois, it is also bearable to reinstate your Illinois business. Keep in mind that you should follow the mentioned steps below. 

Step 1: Determine the Reason for Suspension or Dissolution

The first step in reinstating your Illinois business is determining why it is suspended or dissolved. This information can be found in the notice issued by Illinois or by contacting the Illinois Secretary of State. Common reasons for suspension or dissolution include:

  • Failure to file Annual Reports
  • Failure to pay taxes or fees
  • Failure to maintain a Registered Agent
  • Non-compliance with state laws and regulations

Step 2: Resolve Outstanding Issues

Once you have identified the reason for your business’s suspension or dissolution, you must resolve the outstanding issues. This may include:

  • Filing any missing Illinois Annual Reports and paying associated fees. In Illinois, the LLC Annual Reports costs $75 while the Corporation Annual Report costs $155.
  • Paying any outstanding taxes or fees
  • Appointing or updating your Registered Agent information. 
  • Resolving any non-compliance issues with state laws and regulations

Ensure that you keep records of all payments and documents submitted to the Illinois Secretary of State, as you may need to provide proof of compliance during the reinstatement process. We recommend hiring the Best Registered Agent Services if you plan to reinstate your business. This will ensure that your documents are up to date.

It is suggested that you speak with a legal professional before you begin reinstating your Illinois business. They’ll understand what’s best for you and your company. To safeguard your personal assets from business debts, you can always start an LLC in Illinois.

– WEBINARCARE EDITORIAL TEAM

Step 3: Obtain a Certificate of Good Standing

Certificate of Good Standing is a document issued by Illinois that verifies that your business is in compliance with all state requirements and is authorized to conduct business within the state. Although obtaining a Certificate of Good Standing is not always required for reinstatement, it can be beneficial in demonstrating your business’s compliance and may expedite the reinstatement process.

To obtain a Certificate of Good Standing in Illinois, you will need to:

Get and Submit the Form

The form is available on the Illinois Secretary of State website. You can download the form and mail it or submit it online. 

Online Application Process:
  • Visit the State Website: In Illinois, they offer an online portal for business services, which includes the option to request a Certificate of Status.
  • Register an Account: You may need to create an account or log in to your existing account to access the application process.
  • Provide Required Information and Documentation: The online application typically requires basic information about your business, such as the entity name, identification number, and business type. You may also need to upload supporting documents. 
Paper Application Process:
  • Download and Complete the Appropriate Forms: Visit the Illinois Secretary of State to download the required application forms for the Certificate of Good Standing. Complete the forms, ensuring all information is accurate and up-to-date.
  • Provide Required Documentation: In Illinois, you may need to include copies of your registration documents, Articles of Organization, Annual Reports, or other supporting materials.
  • Mail or Deliver the Application: Once you have completed the forms and gathered the necessary documents, mail or deliver the application package to the Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL 62746, along with the required fees.
Pay Any Associated Fees

The fees for obtaining a Certificate of Good Standing cost $25, vary depending on the type of business entity. Some states also offer expedited processing for an additional fee. Check the Illinois Secretary of State website for the most up-to-date fee schedule. The Certificate of Good Standing’s processing time varies from state to state. Also, it depends on the expedited filing as well. It can take a few days to a few months to obtain the Certificate of Good Standing in Illinois.

Provide Proof of Compliance

To prove compliance with state requirements, you must file Annual Reports and pay the necessary taxes.

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Step 4: Submit Reinstatement Application

Once you have resolved all outstanding issues and obtained a Certificate of Good Standing, you can submit your reinstatement application to the Illinois’s Secretary of State. The reinstatement application process may vary depending on the state and the type of business entity (corporation, LLC, etc.).

In general, the reinstatement application process will require:

  • Completing a reinstatement application form is typically found on the Illinois Secretary of State’s website.
  • Providing proof of compliance with state requirements, such as filing Annual Reports, paying taxes, and maintaining a Registered Agent.
  • Pay the reinstatement fee in Illinois. The cost of the reinstatement fee amounts to $200 (domestic corporations), $400 (foreign corporations). However, the cost will vary depending on the length of time your Illinois business has been suspended or dissolved.

Step 5: Wait for Approval

After submitting your reinstatement application and all required documentation, you must await approval from the Illinois’s Secretary of State. The processing time for reinstatement applications can vary depending on the Illinois and the complexity of your case. Being patient and prepared to provide any additional information or documentation requested by Illinois during this time is essential.

Step 6: Notify Creditors and Stakeholders

Once your business has been reinstated, you must notify creditors and stakeholders of your business’s renewed status. This may include:

  • Sending a formal letter to creditors and stakeholders informing them of the reinstatement.
  • Updating your Illinois business’s website and social media accounts to reflect the reinstated status.
  • Informing any relevant licensing or regulatory agencies of the reinstatement.

Step 7: Resume Business Operations

After your Illinois business has been reinstated and all relevant parties have been notified, you can resume your business operations. Be sure to maintain compliance with state laws and regulations moving forward to avoid future suspensions or dissolutions.

Reinstating or Creating a New Business?

Whether to reinstate a business or start a new one from scratch depends on several factors specific to your situation. Here are some points to consider when making your decision:

  • Costs: The costs of reinstating and starting a new business can vary significantly. Reinstating a business may involve paying outstanding taxes, fees, and penalties while starting a new business requires registration fees and potential legal costs. Compare both options’ costs to determine which is more financially viable.
  • Business History and Reputation: If your previous business has a strong reputation and established customer base, reinstating it may be more beneficial than starting from scratch. On the other hand, if your Illinois business has a negative history or unresolved legal issues, start fresh with a new business.
  • Time and Effort: Reinstating a business can be a time-consuming process, as you need to resolve outstanding issues, submit a reinstatement application, and wait for approval. Starting a new Illinois business may be faster, as you can register the business and begin operations relatively quickly. Consider which option is more time-efficient based on your situation.
  • Legal and Regulatory Compliance: If your previous Illinois business was suspended or dissolved due to non-compliance with state laws and regulations, you should carefully evaluate whether you can maintain compliance if the business is reinstated. If you are confident in your ability to comply with requirements, reinstating the business might be a good option. However, starting a new Illinois business might be a better choice if you still determine your ability to maintain compliance.

Ultimately, deciding to reinstate a business or start a new one from scratch depends on your circumstances and goals. Consider the abovementioned factors, consult with professionals such as Illinois Business Attorneys and accountants, and evaluate which option best suits your needs and long-term business objectives.

FAQs

How do I reinstate my Illinois business?
You need to file an Application for Reinstatement with the Illinois Secretary of State.
Can I reinstate my Illinois business online?
Yes, the Illinois Secretary of State website allows online reinstatements.
What is the fee to reinstate an Illinois business?
The fee varies depending on the type of business and how long it has been inactive.
How long does it take to reinstate an Illinois business?
The processing time depends on the volume of paperwork and online filings that the Secretary of State is experiencing.
Do I need to pay any unpaid taxes before I can reinstate my Illinois business?
Yes, you need to pay any unpaid taxes before filing for reinstatement.
How do I find out about any unpaid taxes that my Illinois business owes?
You can check with the Illinois Department of Revenue to find out if your business has any unpaid taxes.
Can I continue operating my Illinois business while it is being reinstated?
No, your business cannot operate until it is completely reinstated.
What is the penalty for not reinstating an Illinois business?
If your Illinois business is not reinstated, it can be dissolved and subject to additional fees and penalties.
Do I need a lawyer to reinstate my Illinois business?
No, you do not need a lawyer to reinstate your Illinois business.
Are there any non-profit Illinois businesses that can help me with reinstatement?
Yes, there are many non-profit organizations in Illinois that offer assistance with small business reinstatement.
Can I reinstate my Illinois business if it has been dissolved by the state?
Yes, you can apply for reinstatement even if your Illinois business has been dissolved by the state.
Can I reinstate my Illinois business if it was dissolved voluntarily?
Yes, you can apply for reinstatement even if your Illinois business was dissolved voluntarily.
Is there a deadline to reinstate an Illinois business?
No, there is no specific deadline, but the sooner you start the process, the better.
Are there any Illinois business reinstatement assistance services?
Yes, there are businesses and websites that are dedicated to providing assistance with reinstating an Illinois business.
Can I reinstate my Illinois business after I have retired from it?
Yes, you can reinstate your Illinois business after you have retired from it.
Can I hire employees while my Illinois business is being reinstated?
No, you cannot hire employees until your Illinois business is completely reinstated.
Can I begin operating my Illinois business as soon as my reinstatement application is filed?
No, you must wait until your reinstatement has been completed and approved by the Illinois Secretary of State.
Can I reinstate my foreign (out-of-state) business in Illinois?
Yes, you can reinstate your foreign business in Illinois as long as you qualify to conduct business in Illinois.
Can I operate my business in the meantime while I’m reinstating my Illinois business?
No, you must wait until your Illinois business is fully reinstated before operating it.
Can I appeal the denial of my Illinois business reinstatement?
Yes, you can appeal the denial of your Illinois business reinstatement.
How do I request an extension to reinstate my Illinois business?
You can contact the Illinois Secretary of State and request an extension to reinstate your Illinois business.
Can I reinstate my Illinois business while I am out of state?
Yes, you can complete the reinstatement process from out of state.
What should I do if my reinstatement application is rejected in Illinois?
You should find out why the application was rejected and make the necessary changes and resubmit the application.
How can I prove that my Illinois business has been reinstated?
You will receive a Certificate of Good Standing from the Illinois Secretary of State when your Illinois business has been reinstated.
How long does a reinstatement stay valid in Illinois?
A reinstatement remains valid as long as the business remains in good standing and keeps up with annual filings and fees.
Can I increase the number of owners in my Illinois business during reinstatement?
Yes, you can change the ownership structure of your Illinois business during the reinstatement process.
Will my business name change in the reinstatement process?
No, the name of your Illinois business will remain the same unless you request a name change.
How do I change my business address or phone number during a reinstatement?
You can change your business address or phone number on your reinstatement application and with the appropriate state agencies.
Can I sell or transfer my Illinois business while I’m in the reinstatement process?
No, you cannot sell or transfer your Illinois business until the reinstatement process is complete.
What are the requirements to reinstate an Illinois business?
You must file the appropriate forms and pay any delinquent fees or penalties.
Can I reinstate my Illinois business if it has been dissolved for more than five years?
You may be required to start a new business entity in Illinois if it has been dissolved for more than five years.
How much does it cost to reinstate an Illinois business?
The cost for reinstatement varies depending on the type of business entity and any outstanding fees or penalties.
Will I be required to file past due tax returns when reinstating an Illinois business?
Yes, you must file any past due tax returns and pay any outstanding tax liabilities.
Can I still operate my business while it is being reinstated in Illinois?
No, you cannot legally operate your business until the reinstatement process is complete.
What happens if I don’t reinstate my Illinois business?
Your business may be permanently terminated and any remaining assets may be seized by the state.
Are there any time limits for reinstating an Illinois business?
Yes, you must reinstate your Illinois business within five years of its dissolution.
Will I be required to obtain new business licenses or permits when reinstating an Illinois business?
You may need to obtain updated licenses or permits for your reinstated business, depending on the type of business and any changes to state regulations.
Can I reinstate an Illinois LLC or corporation if it has been administratively dissolved?
Yes, you can reinstate an Illinois LLC or corporation that has been administratively dissolved by filing the appropriate forms and paying any outstanding fees.
Can I reinstate an Illinois business that was voluntarily dissolved by its owners?
Yes, you can reinstate an Illinois business that was voluntarily dissolved by filing the appropriate forms and paying any outstanding fees.
Can I reinstate an Illinois business if I’m not the original owner?
Yes, as long as you have the legal authority to do so, you can reinstate an Illinois business as a new owner.
What is the difference between “surrendering” a business and “dissolving” a business in Illinois?
Surrendering a business means that the owner voluntarily terminates the business entity, while dissolving a business can be done either voluntarily or involuntarily through the state.
Can I reinstate my Illinois business if I dissolved it due to financial difficulties?
Yes, you can reinstate your Illinois business if you were forced to dissolve it due to financial issues by filing an application with the Illinois Secretary of State.
How can I check the status of my Illinois business?
You can search for your business status on the Illinois Secretary of State’s website by using the company’s name or corporate ID number.
Can I reinstate an Illinois not-for-profit corporation?
Yes, you can reinstate an Illinois not-for-profit corporation by filing the appropriate forms and paying any outstanding fees or penalties.
Is it necessary to have a registered agent in Illinois to reinstate a business?
Yes, you must have a registered agent listed on the reinstatement documents and that agent must have a physical address in Illinois.
Can I reinstate my Illinois business if it is in bankruptcy?
Yes, you can still try to reinstate your Illinois business while it is in bankruptcy proceedings, but you must first get your bankruptcy trustee’s approval.
Can I reinstate my Illinois business even if I owe back taxes to the state?
Yes, you can still begin the reinstatement process for your Illinois business, but you will need to pay any outstanding tax liabilities before completing the process.
What happens if I miss a deadline for reinstating my Illinois business?
If you miss a deadline for reinstating your Illinois business, it may be permanently dissolved and any remaining assets may be seized by the state.
Can I request expedited processing for my Illinois business reinstatement?
Yes, you can request expedited processing for an additional fee in Illinois.
Are there any penalties for late reinstatement of an Illinois business?
Yes, you may be assessed late fees or penalties for failing to reinstate your Illinois business on time.
Can I request a waiver of any fees or penalties for reinstating my Illinois business?
You can request a waiver for fees or penalties, but it is up to the discretion of the Illinois Secretary of State’s office.
Can I still use my original business name after reinstating my Illinois business?
Yes, you can still use your original business name after reinstating your Illinois business.
How often do I need to file reports for my reinstated Illinois business?
You must file an annual report for your reinstated Illinois business every year to stay in good standing.
Can I cancel my Illinois business reinstatement after starting the process?
You may be able to cancel your Illinois business reinstatement if you change your mind, but the fees and processing time will still apply.

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Conclusion

Reinstating a business in Illinois can be complex and time-consuming. However, following the steps outlined in this guide, you can successfully reinstate your business and resume operations. Remember to stay diligent in maintaining compliance with state laws and regulations to avoid future issues and ensure the continued success of your business.

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