3 things you need to know about your entity and your state
Updated: 4 days ago
When you form a business entity in your state, it may be easy or confusing. Be ready for paperwork, filing fees, and possibly long hold times with state government offices.
And if you move, you want to be off the hook in that state for filing any forms or paying dues, right? Now you’ll have to dissolve the entity in your former state.
IN MY CASE...
I formed an entity in Texas. Then, moved to Colorado. So, I had an entity in Texas and Colorado. Since I was no longer doing business in Texas, that one had to go—along with my annual obligation to file franchise tax forms.
After many attempts to contact the state via mail and phone, I wasn’t getting anywhere with dissolving this entity. I was getting more and more confused. And I needed help.
Each state has a specific set of requirements for entities doing business within their borders. They expect you to get the process right or pay fines for making a mistake. And we don't want anyone facing a sticky situation with the government.
Here are 3 things you need to know about your entity and your state:
- If you need to call the state, have something fun to read while you listen to the hold muzac and prepare to take notes. When you call with questions, ask as many as you can in one go, document answers along with any references cited, and note the agent's name (or ID) and the day + time of your call.
- Document everything. Keep every piece of paper they have given you from the time your entity’s formed to the time it’s dissolved. You’ll have hard copies (sent by the state). It's a good idea to scan those docs and keep them in a secure cloud storage folder, such as Google Drive. You reference these papers when changing 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, no joke) and they’ll swoop in and help clarify your actions. A sound support system here is absolutely worth it.
Dissolving my entity in Texas was a breeze—as soon as I handed the task off to CorpNet.
After explaining where I was in the process and sharing a bit of info, they got started right away and could wrap things up smoothly and quickly. In less than a week, I had an email confirmation that we were ready! They sent me all the supporting materials I needed and just like that—I was all done.
If you’re finding yourself in a similar situation and you're overwhelmed with navigating state entity requirements, see what CorpNet offers to support you through it. We're confident you'll love their service as much as we have.
And when you're ready to bring a bookkeeper onto your team, use our free Discovery Call Prep Guide to support you in preparing for your consultation and next steps.