Young businesswoman talking on the mobile phone while showing a beaming smileWhen a business entity fails to timely file an annual report, fails to maintain a registered agent, its duration expires or in several other situations, the Secretary of State may administratively dissolve that entity.

The Secretary’s authority to do so is normally granted by statute, and upon dissolution, an entity may no longer carry on its business other than to wind up, liquidate and pay off its creditors.

An entity may apply to have an administrative dissolution rescinded, and become reinstated, by filing reinstatement documents that impose different requirements according to each State. The process is time consuming and most of the times implies more than one filing.