Should I reinstate my LLC or start a new one?
My business (LLC) has been inactive for a couple years and has been "dissolved" for lack of annual reports with my state. I am bringing the business back to life, however, the fine (penalty) to reinstate my LLC is hefty in my state (FL). I have the option to open a new LLC with the same name at a fraction of the cost to reinstate. Are there any downsides to going with the "new" option vs reinstating?
A bank lender recently told me if I wanted to expand my operation one of the factors banks consider is how long have I been in business "officially." If I reinstate and pay the penalty I keep my time, but if I start again (even though it is less expensive than reinstatement) then I have to wait.
Can anyone shed some light on this for me? Any other pros and cons?
This is not legal advice. However, I have extensive experience in this area and my work is to provide business advice.
I would start a new LLC. As you point out, "officially" means actually operating. Banks can verify continuous operation so it's best not to play games. You can disclose that you have X years of experience operating under a different LLC.
Also, resurrecting the old LLC can reopen old liabilities. In my opinion, a clean new start is your better choice.
Chris Reich, TeachU.com