3 things you need to know about your entity and your state
If you’ve formed an entity in your state, it may have been easy, medium, or… confusing...
Whatever the option - we all know that it involves paperwork and, at least, one check in the mail. Depending on the state you live in, you may have felt like you’ve had to jump through flaming hoops lined with freshly sharpened daggers to get this entity formed. But, hey, it’s done. 👏
If you relocate, you want to be off the hook in that state for filing any forms or paying dues, right? So, you’ll have to dissolve that entity. This can also be easy, medium, or difficult / confusing, depending on your state.
In my case...
I formed an entity in Texas… then, moved to Colorado… so, an entity was created there... and the previous one would be dissolved… and that last part was on the flaming hoops, extra-sharp daggers difficulty / utterly confusing level.
After many attempts to contact the state via paper mail and phone, I wasn’t getting anywhere. Help was needed, and I went straight after it… (best decision ever!).
When it comes to your entity, each state has a very specific set of requirements. It’s not always easy to navigate - as demonstrated by the easy, medium, difficult scale. No matter what your state requires, here’s one thing they expect of you… You better get it right.
And no matter what the particular process related to your entity is - they expect you to get it right or pay them money for not getting it right. Ouch. Let’s avoid that and do it right one time... the first time.
Here are 3 things you need to know about your entity and your state (and getting the rules right):
If you need to call the state, bring a book and prepare to take notes. If you have to pick up the phone to get answers, ask as many questions as you can at once, document answers along with any references cited, and note the agent's name / ID along with day / time of the call - and be sure to bring a book when you have to sit through all that hold music. I’m sure we all have way better things to do than sit on hold with a government office - outsourcing this task was especially helpful with getting my time spent on calls back. This was a massive win for me!
Document everything. Keep every piece of paper you’ve been given from the time your entity’s formed to the time it’s dissolved. You’ll have hard copies (sent by the state) - be sure to also scan those and keep them in a secure cloud storage folder, such as Google Drive. You’ll need these when making any changes to your entity.
Don’t navigate complex state regulations alone. If you’re not sure where to start or what the letters mean that you’re getting from the state, reach out for help. There are people out there who love this stuff (yes, for real) and they’ll swoop in and help clarify all of your action items. A sound support system here is absolutely worth your time. You’ll get hours back - and what’s better than that, honestly.
Dissolving my entity was a breeze… once I handed the task off to CorpNet, business formation, and compliance experts. After explaining where I was in the process and sharing a bit of info with them, they were off to wrap things up smoothly and quickly. In less than a week, I got an email confirmation that we were done. Attached was my certificate from the state - easy!
If you’re finding yourself in a similar situation and are feeling overwhelmed with navigating state entity requirements, see what CorpNet has to offer and get it done quickly and correctly.
As always, reach out to us with your questions!