Are You in Good Standing?
- BR Accounting And Tax Service
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I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.
As we prepare to enter the 2021 Tax Filing Season states are encouraging all business owners to check with the state and verify that their businesses are in “Good Standing” with the states that they operate in, currently. Here are a few check list items, to guide you as a starting point:
1. Determine if your business status is “Active” or in “Good Standing”. A. Look up your business’ status on your state(s) website:.B. Note the status of your business: Is it “Active” or “Inactive”? Is it in “Good Standing”? What “Business Type” is it?
Note: In the majority of states, Only legal entities (ie. corporations, LLCs) can be in “Good Standing”, and non-legal entities (Sole Proprietorships and General Partnerships) can only be “Active” or “Inactive”.
C. If your business is “Inactive” or not in “Good Standing”, obviously, you need to take the necessary steps to rectify the matter. You need to research whether or not your business has done any of the following (wording could be different in certain states):
- reported business personal property, now or in the past,
- maintains a trader’s license, or
- is applying for a county business license,
2. File all Annual Reports and Business Personal Property Tax Returns due.
- This is the most common reason businesses are not “Active” or in “Good Standing”. All businesses must file an Annual Report each year, starting with the year after it was created.
1. Look up your business on the state(s) website:
2. Click on the proper tab, i.e. “Annual Report/Personal Property” tab.
Hopefully, all will be in order for your business to proceed into the new year, in proper standing with the state(s) in which you operate, as we head into the new year, and what is sure to be a absolutely wild tax season. Feel free to contact us for any of your or your business’s tax needs.