What is administrative dissolution?
When a corporation 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 corporation. The Secretary’s authority to do so is granted by statute, and upon dissolution, a corporation may no longer carry on its business other than to wind up, liquidate and pay off its creditors. A corporation may apply to have an administrative dissolution rescinded, and become reinstated, by requesting a “rescission packet” from the Secretary of State and complying with the requirements set forth in the packet.
When a corporation 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 corporation. The Secretarys authority to do so is granted by statute, and upon dissolution, a corporation may no longer carry on its business other than to wind up, liquidate and pay off its creditors. A corporation may apply to have an administrative dissolution rescinded. Link. What are the future consequences of having your corporation administratively dissolved and failing to properly dissolve it according to the corporate code of the state of incorporation? Failure to [properly] dissolve a corporation or LLC could result in the following: • Tax Filings. The company may be required to prepare and submit tax returns to the IRS, the state, and other municipal taxing authorities. • Personal Liability. Individual shareholders or members may be PERSONALLY liable for the entity’s debt
When a corporation 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 corporation. The Secretary’s authority to do so is granted by statute, and upon dissolution, a corporation may no longer carry on its business other than to wind up, liquidate and pay off its creditors. A corporation may apply to have an administrative dissolution rescinded, and become reinstated, by requesting a “rescission packet” from the Secretary of State and complying with the requirements set forth in the packet.
A corporation or limited liability company may be Administratively Dissolved if the entity in question falls into delinquent status for failure to file its required annual report and fails to correct that status within a certain time, after appropriate notification attempts by the Department of Financial Institutions. Administrative Dissolution is the termination of existence of the entity by this department. Please refer to Wisconsin statutes sec. 180.1421 or sec. 181.1421 or sec. 183.09025(2) www.wdfi.org/corporations/statutes.
