September 2, 2014

Businesses urged to check status with state to avoid dissolution (AUDIO)

A deadline looms for businesses that have failed to maintain their good standing with the state.

A change made to the Model Corporate Act set a five-year limit for businesses which have lost their good standing with the state to get it back.

Secretary of State John Gale says businesses that have failed to file their occupation reports, failed to pay their occupational taxes and failed to keep their registered agents current since 2007 will be considered administratively dissolved on the first of January.

“I have had, believe it or not, instances where businesses have failed to do their filings and have continued for 10 or 20 years in a few instances without knowing they’ve lost their good standing,” Gales tells Nebraska Radio Network.

The legislature approved LB 854 this year. It gives businesses that have been administratively dissolved five years to seek reinstatement. Those that have been administratively dissolved since 2007 will permanently forfeit their status January 1, 2013. Attempts to reinstate after five years will be null and void.

The bill applies to limited liability companies, corporations, non-profit corporations and limited cooperative associations.

Gale advises all business entities to review their status with his office and, if necessary, reinstate before the five-year expiration date. Between 2002 and 2007, around 18,000 Nebraska businesses have been dissolved.

The legislature changed the law to avoid creation of “shelf” companies, businesses no longer operating, but with the paperwork needed to launder money from illicit gains.

The Secretary of State’s office says the status of a business can be checked for free by logging onto the Secretary of State’s website. Look Under “Quick Links” on the main page for “Corporate & Business Search”.

If the status of your business is inactive, call the Business Services Division of the Secretary of State’s office at 402-471-4079 or send an email to sos.corp@nebraska.gov to request the appropriate forms to reinstate.

AUDIO: Brent Martin reports [:50]