Business Status of your entity
If you are planning to register your business in the state of Nevada, one of the key to success is to ensure good business status Nevada. What is business status? In the state of Nevada, if you are planning to apply for a loan or planning to conduct business with a distributor, vendor, or partner agencies then your company needs to have a “good standing status”. Is there a way to find out if a business entity has a good standing status or not?
In the state of Nevada, any business entity including a corporation, LLC, partnership, can come face to face with a situation leading to it featuring in the “Nevada business status default” list. Now, in order to understand how your company can have a good standing business status, you have to identify the current status of your company. The different statuses include:
The Active Status
A business entity will be considered as being active if it has a good business status Nevada. This simply means that the business has not defaulted on the basis of failure to pay fee, ensure annual requirements, or submission of business documents. If all applicable fees and taxes of a business entity are paid then it will be entitled to a “Good Standing Certificate”, which will further ensure that the entity can apply for a bank account or a loan.
The Default Status
A business entity is considered to be in the Nevada business status default list if it has failed to submit their annual list or annual report along with the applicable fees by the due date pursuant to NRS 78.150 to 78.185 for business corporations and NRS 86.263 for a limited liability company. This is applicable for both domestic and foreign business entities. Any business deemed to be in default can get back to the active status if they submit the annual list or report along with fee and penalties.
If your business license gets revoked by the Secretary of the state then the company will be deemed to be in the Nevada business status revoked list. The reasons for business being revoked can vary from one state to another and the statute for each state is different for different types of businesses. In the state of Nevada, if a business corporation fails to comply with the requirements prescribed in NRS 78.152 – subsection 3 then the Secretary of the state can take necessary action like suspension or revocation of the corporate charter. The statutes primarily specify that business entities in the state need to submit business documents and pay fee within their due in order to maintain good status.
Once your company is in the Nevada business status revoked, you will have to prepare and submit extensive paperwork to reinstate your business corporation, LLC, or any other type of entity. Know more about business reinstatement in Nevada!
A business entity can be dissolved or can undergo dissolution if it’s charter or articles has been revoked by the Secretary of the State or if the board of directors or any person with authority files paperwork to dissolve the company like Corporation in Nevada can be dissolved pursuant to NRS 78.580. Once a company is dissolved, its business status Nevada will not be active and it will not be able to conduct business in the state.
If your business entity is dissolved like a corporation then you can apply for reincorporation pursuant to NRS 78.725 but if it has Nevada business status revoked then what are your options?