As your business grows, you may find that you need to make changes that impact your licensing. For example, you may move to a new office, prompting an address change, or you may experience changes in officers or directors. To ensure your state has the most up-to-date information about your business, you may need to submit a new filing to keep your license in good standing. Understanding the licensure process and your obligations is crucial to staying in good standing and remaining compliant.
If your business needs to make changes to its original registration documentation, you may need to file a restatement of the articles of incorporation or articles of organization. Factors that may trigger a new license application include the following:
There are two sets of compliance responsibilities to face when you undertake such changes. First, you must complete the organizational formalities necessary to authorize the change. Then, you must file the appropriate documents with the Secretary of State in your home state.
A change of business entity, also called business entity conversion or statutory conversion, is the legal process of converting your current business entity into another business entity without forming a new entity or dissolving your existing entity. If the state doesn’t allow for conversions, you will have to dissolve and start a new company. With dissolution, the original entity is dissolved, and a new entity is formed.
Changing your business entity is done through the Secretary of State. While each state has its own rules, there are generally at least three parts: a Plan of Conversion document, business formation documents for the converted entity, and a certificate of conversion.
Beyond legal liability and taxes, changing your business entity could involve additional requirements. For example, if you are running a business that requires licensing, you will likely have to apply for a new license for your new business entity.
Your business can face fines, closures, delays, and other penalties without the correct licenses. Spare your business the time, expense, and potential mistakes. With Harbor Compliance’s managed services you can access our compliance specialists to handle initial registration, renewals, and special projects.
If you prefer to manage your licenses in-house, our License Manager software enables you centralize and maintain your current licenses and efficiently research and obtain new licenses. The foundation of License Manager is our nationwide database of licensing and filing requirements that helps keep your portfolio up-to-date.
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Harbor Compliance does not provide tax, financial, or legal advice. Use of our services does not create an attorney-client relationship. Harbor Compliance is not acting as your attorney and does not review information you provide to us for legal accuracy or sufficiency.