Today on the ABC’s of small business we’ll be covering the basics, and the benefits, of what it means to file for a withdrawal for your company.

As previously covered here on MyCorp, corporations or LLCs that have previously foreign qualified in a state other than their home state to legally operate and conduct business in, file for a withdrawal in order to stop doing business in that state. By filing for a withdrawal, this ensures the business will have no further obligations to that state and the sooner the withdrawal is filed for review, the better. The more changes a business undergoes, it may become necessary to stop operating within certain states and expand to others instead.

Filing for a withdrawal provides more benefits than simply being able to stop conducting business within that particular state you withdraw from. Additionally, you’ll be able to prevent late fees and additional changes and avoid paying unnecessary taxes and annual state fees for your business within that state. Once your withdrawal order form has been filed and approved by the Secretary of State, you will have terminated the corporate existence in that state.

As a quick side note, before you start filing, remember that all required fees, penalties, and costs must be paid in order for the application for withdrawal to be considered complete with most jurisdictions.