Categories: Business BasicsMaintaining a Business

Filing for Withdrawal

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.

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.