The status of an Asset Protection entity is paramount to the effectiveness of an Asset Protection Plan. After a limited liability company (LLC) or limited partnership (LP) is formed, maintaining the entity in good standing with the State it is registered under helps to preserve the limited liability an entity provides and avoids state-imposed fees or penalties. Moreover, financial institutions require that an entity maintains good standing to open a bank account or to approve financing. Ultimately, failing to maintain your entity in good standing can prompt the State to administratively dissolve the entity and revoke its ability to transact business in the state—resulting in the loss of liability protection for the individuals involved in your Asset Protection plan.
Tips to maintaining your entity in good standing:
- Timely file annual reports
- Timely pay annual franchise taxes
- If using a registered agent company, timely pay annual registered agent fees. If designating an individual as the registered agent, make sure they maintain a bona fide address in the State of designation.
- Sign up for entity management services. Depending on the complexity of the Asset Protection plan, maintaining entities in good standing can be an extremely time-consuming and complex process—especially if one is conducting business in more than one state. At The Presser Law Firm, we offer entity management services that accurately monitor and maintain the good standing status of entities.
To learn more about our entity management services, contact The Presser Law Firm, P.A. for a consultation with one of our Asset Protection attorneys.
