Reinstate Your Business the Right Way
Learn the exact steps to legally close your business and avoid future risks.
Staff Writer
Arorix Editorial Team
Updated: June 14, 2025, 5:29pm
If your LLC or Corporation has been administratively dissolved or revoked by the state, you may be able to reinstate it. Business reinstatement is the legal process of restoring your company’s status so you can operate again, access bank accounts, sign contracts, and remain protected from liability.
Acting fast can help you avoid additional penalties and keep your original business name, EIN, and legal history intact.
What Is Business Reinstatement?
Business reinstatement is the official filing that restores a business entity’s active status after it has been dissolved, suspended, or revoked—usually due to noncompliance.
- The business was closed by the state, not by voluntary choice
- Reinstatement is like “reopening” your company under its original records
- It allows you to keep the same EIN, name, ownership, and filing history
Why a Business Might Be Involuntarily Dissolved
Most reinstatement cases happen because of missed compliance obligations. Common reasons include:
- Failure to file annual reports or franchise taxes
- Not maintaining a registered agent on record
- Ignoring state communications or deadlines
- Letting a license or permit expire
- Administrative errors or failure to respond to official notices
When Should You Dissolve a Business?
Consider dissolution if:
- The business has ceased operations permanently.
- There’s no intention to resume business activities.
- You’re restructuring or forming a new entity.
- You want to eliminate ongoing compliance obligations.
When Reinstatement Is Necessary
- You want to resume operations under the original business name
- You need to restore access to business bank accounts or assets
- You want to avoid forming a new entity from scratch
- You want to keep existing contracts, EIN, or brand recognition
How to Reinstate a Business
The process varies by state, but generally includes:
Check Eligibility
- Not all states allow reinstatement after long periods of inactivity
- Verify whether your business is eligible to be restored
Address the Cause of Dissolution
File late reports, pay missed taxes, or appoint a new registered agent
File Reinstatement Forms
Submit the required reinstatement paperwork with your Secretary of State
Pay All Fees and Penalties
Includes reinstatement fee, back taxes, and any interest or penalties
Receive Confirmation of Reinstatement
Once approved, your business status is updated to “active” on the state record
Reinstatement Costs and Timeline
- Reinstatement Filing Fee: $75–$300, depending on the state
- Late Report Filing Fees: $50–$200 per missing year
- Franchise Taxes Owed: Varies by revenue and state rules
- Processing Time: Typically 1 to 4 weeks
- Expedited Service: Available in some states for an extra fee
What Happens If You Don’t Reinstate?
- Your business name may become available to others
- You may lose access to your business EIN, bank account, or assets
- Any contracts signed while inactive may be considered invalid
- You’ll remain personally liable for debts or actions taken post-dissolution
- You may be unable to secure loans, licenses, or legal protections
Can You Just Start Over Instead?
Yes—but consider the trade-offs:
Starting a New Business Entity:
- You’ll need a new EIN
- You may lose existing contracts and history
- You must reapply for licenses, bank accounts, and permits
- You’ll have to rebrand if the business name was protected
Reinstatement Benefits:
- Keep your business identity intact
- Retain licenses, contracts, and financial history
- Often cheaper and faster than forming a new entity
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Reinstating your business restores your legal standing, protects your assets, and gives you a clean path to move forward—don’t let administrative issues hold your business back.
How do I know if my business was dissolved?
Check your Secretary of State’s business database. If your status shows “Inactive,” “Revoked,” or “Dissolved,” you may need reinstatement.
Can I keep my EIN after reinstatement?
Yes, as long as you reinstate the same legal entity, your EIN remains valid.
What if my business was dissolved years ago?
Some states allow reinstatement within a time limit (e.g., 2–5 years). Others may require you to start fresh.
Can I file reinstatement myself?
Yes, but using a service can help ensure you don’t miss any required documents, taxes, or deadlines.
What’s the difference between reinstatement and reactivation?
Reinstatement applies to legally dissolved entities. Reactivation usually refers to licenses or permits being re-validated.