Each state has an annual fee for corporations, LLCs, and LPs. Of course, the fees are an important source of revenue for the states.
A major issue arises when the company fails to pay annual fees. The state has the power to revoke your company charter. Without a current charter someone later suing the company can piece the corporate veil and pursue claims against the individual owners. By failing to keep your corporate charter in place due to nonpayment of the annual fees you are now personally liable for the company’s claims.
The solution to this problem is clear: Pay the annual filing fees (and keep a reputable resident agent place). You will be better protected this way. For more information or to get started, call us today at 1-800-600-1760 or sign up for a free 15-minute consultation.