What Happens If You Miss a Filing Deadline

What Happens If Your LLC Is in Bad Standing?

When you miss a required filing, like an annual report or a renewal form, your state may change your LLC’s status from active to “not in good standing.” If too much time passes, your LLC might even be administratively dissolved.

So, what happens if your LLC is in bad standing? It depends on your state, but here are some of the potential consequences:

• You lose liability protections

• You may not be able to legally operate or enter into contracts

• Banks may freeze accounts or deny loans

• You could face fees, penalties, or reinstatement costs

Every state has different rules. For example, failure to file a Statement of Information in California can result in penalties and suspension by the Franchise Tax Board. In Louisiana, if your business is fully revoked, you may not be able to re-secure your same business name for up to three years if you are forced to start again from the beginning.

When Is an LLC Annual Report Due?

Unfortunately, there’s no one-size-fits-all answer to the question of “when is an LLC annual report due?” It varies by state. Some states require reports annually, others only biennially. Due dates can be based on:

• Your LLC’s formation anniversary

• The calendar year (e.g., April 1st every year)

• The quarter in which you founded your LLC

You can usually find your state’s specific requirements on the Secretary of State’s website. Missing your report deadline doesn’t mean your business is dead in the water, but it does start the clock on potential fines and dissolution.

How to Reinstate Your LLC 

If you’ve realized your LLC has fallen out of good standing, don’t panic. That rarely ever helps. Most states make it pretty easy to fix the problem. The process to reinstate LLC status generally involves:

• Filing a reinstatement application. Usually done through your Secretary of State’s office.

• Paying any outstanding fees or penalties. You may owe late fees, missing report fees, and reinstatement fees.

• Filing missing documents. Any required documents, such as overdue annual reports or renewal forms, must be completed and submitted.

• Waiting for confirmation. Processing times vary, but many states offer expedited options.

You can often complete the business reinstatement process online, though some states still require mailing in forms. Check your state’s requirements to be sure. Once your paperwork is processed and your LLC is officially in compliance, you may request a certificate of good standing from your Secretary of State. This document proves your LLC is active and up to date and is something banks, lenders, or potential partners might request when you're applying for financing, bidding on contracts, or expanding your operations. In some states, like Indiana, this is called a “Certificate of Existence.” 

Reinstating a Business License

Sometimes, letting your LLC fall out of good standing also impacts your business licenses or permits. If this happens, you must reinstate your business license through your local or state licensing agency. Usually, this requires:

• Proof that your LLC is back in good standing

• Payment of renewal or reinstatement fees

• Re-submitting your license application, if needed

It’s a good idea to handle the LLC reinstatement first, since most agencies want to see an “active” status for your business before they let you renew or reinstate a license.

What to Do If Your LLC Is Not in Good Standing

If you’ve looked up your LLC and found it’s “not in good standing,” don’t ignore it. Here’s what to do:

• Confirm the reason for the status. It could be a missed filing, unpaid fees, or even an error.

• Fix the problem quickly. Most states give you a grace period before things escalate to administrative dissolution.

• Keep documentation. Save copies of all your filings and payment confirmations in case of future questions.

Reinstating an LLC is usually much cheaper than starting over from scratch, and it protects your business name and reputation.

Avoiding Future Missed Deadlines

Once you’ve gone through the pain of reinstatement, you probably don’t want to do it again. Here are a few tips to stay in good standing moving forward:

• Set annual calendar reminders for filing deadlines.

• Use a registered agent service that sends alerts and handles filings for you.

• Check your Secretary of State’s website regularly for updates or changes.

• Consider professional business compliance services.

A little organization can go a long way when it comes to remembering what needs to happen when. 

Reinstate Your LLC and Keep Moving Forward

​​Missing a filing deadline isn’t the end of the world, but it’s essential to act quickly to protect your business. Whether you just missed your first annual report or your LLC’s status has already been suspended, most states allow you to reinstate your LLC with a bit of paperwork and some fees. The key is to take action now, not six months from now. You’ve got this. Just take it one step at a time.

Once your LLC is reinstated, make it a priority to stay ahead of future deadlines. Consider setting up digital reminders, using a compliance calendar, or hiring a registered agent to track your filings. Staying proactive helps avoid unnecessary stress, late fees, and operational interruptions.

Reinstating your LLC isn't just about checking a box. It's about restoring the legal protections and credibility your business needs to grow. Getting back in good standing shows clients, banks, and partners that you're serious and reliable. So don’t be discouraged by the misstep. Fix it, learn from it, and keep building the business you're proud of.

Handle Your Taxes Early

Managing your taxes from the start is essential, especially when working with limited resources. Most new business owners need to apply for a free Employer Identification Number (EIN) from the IRS, which is required for filing taxes. You should also understand your sales and self-employment tax obligations to avoid penalties. The IRS offers free resources to help you file correctly and track deductions. If you’re a sole proprietor or freelancer, set aside a portion of your income to cover your tax liabilities.

Start Your Business Today

Starting a business with less than $500 and staying compliant is achievable! By focusing on the essentials like business registration, licenses, taxes, and free tools, you can minimize costs while ensuring that your business meets legal requirements. Remember to start small, stay disciplined with your budget, and use the wealth of free resources available.

Bizee offers a range of tools and resources to help you launch your business successfully and stay compliant without exceeding your budget. Let us help you take the next step in your entrepreneurial journey.