Does an LLC Expire?
Many business owners want to know if their LLC will expire and the answer is, it depends, and here’s why.
A limited liability corporation is a business structure designed to protect business owners from being personally liable for the company’s debts or other liabilities.
Limited liability companies can have one owner or multiple owners and they have very little restrictions regarding the company’s structure.
This means you decide if you want your business to be a single member LLC, multi-member LLC, and so on.
Furthermore, LLC members can decide if an LLC will continue indefinitely or expire on a certain date.
The LLCs Articles of Organization is where members designate the duration of the LLC or the terms of the life of the LLC.
For example, there may not be an LLC expiration date listed in the Articles of Organization, but there may be events listed (such as the death of an LLC member or bankrupcy) that can cause an LLC to be terminated.
Aside from the terms stated in the Articles of Organization, an LLC must maintain an active and good standing.
In order for an LLC to remain in good standing, they must renew their registered agent each year.
A registered agent is simply a person or entity appointed to accept any official mail or important documents on behalf of an LLC.
They help your business maintain effective corporate compliance by informing you of annual filing deadlines or any legal notices that get sent to you.
Failure to have an active registered agent could result in penalties or reverting the LLC to an inactive status.
Some states require annual reports be filed in order to keep an LLC in good standing.
Failure to file these annual reports could lead to an inactive LLC or to the dissolution of your LLC in extreme cases.