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Don Mazza
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What should I do

Don Mazza
Posted Apr 17 2024, 01:14

Hi, so my llc has been inactive for about 10 years now. Should I create a new one or try to reactivate it. What are the pros and cons.

Thank you in advance for taking the time. 

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Henry Clark
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Henry Clark
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Replied Apr 19 2024, 08:53

The LLC part is easy either way. Do you also have an Operating Agreement for it? That is where you need to spend the most effort.

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Charlie MacPherson
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Charlie MacPherson
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Replied Apr 29 2024, 08:36

Check to see if your old LLC is even still active on the state's roster.

I know where I used to have mine (MA), it would be "administratively closed", i.e. dissolved, if you didn't file your annual reports and other paperwork timely.  I think it was 3 years before the Secretary of State would close it, but that's a distant memory.  That probably also varies by state.

If it was administratively closed, you might had some significant expense to resurrect it - like paying 10 years of back fees and filing 10 years of back reports.  Again, check with your state.

I suspect that it would be cleaner and easier to just start a new one.  Especially if there's any chance of latent liability.

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