Businesses that fail to file an annual report, maintain a registered agent and/or registered office, pay applicable business taxes, or pay a required filing fee lose their good standing status.
Loss of Good Standing Status
There are serious consequences to losing your good standing status. These consequences include:
- Fines and penalties
- Personal liability
- Loss of name rights
- Loss of legal rights
- Difficulty securing capital and financing
Loss of good standing is also known as revocation. A revocation is not an official dissolution, which means you will be liable for taxes and filings with the State of Rhode Island until you legally close your business.
While your business remains in a revoked status, you will continue to owe a minimum of $400 to the RI Division of Taxation each year.
You should consult an attorney to fully understand the consequences of your entity’s revocation.
Return to Good Standing Status
Businesses can return to good standing status by following the reinstatement process below. If your entity has been revoked for more than 10 years, you must take additional steps to reinstate. Please email us at [email protected] or call 401-222-3040 for assistance.
To start the reinstatement process, request a Letter of Good Standing (LOGS) for the purpose of “reinstatement” from the RI Division of Taxation.
Within 30 days of receiving your LOGS, contact the RI Department of State to identify the outstanding filings and fees you must submit in order to reinstate.
Entities that have been revoked for more than one year may lose the right to their name. To determine whether or not the entity’s name is still available for use, search the Corporate Database. If the name is no longer available, you must submit an additional filing to change the entity’s name.