If a Corporation or LLC fails to file required reports or pay its taxes on time; or if a Business does not have a Registered Agent, that Company's right to do business could be suspended or its charter may be revoked by the Secretary of State or the by the state Departments of Treasury or Taxation. 

Different terms are used to define suspension of a company's right to do business in a specific state.  Some of these are Administratively Dissolved, Withdrawn, Involuntarily Terminated, and Revoked.  If a Corporation or LLC is Dissolved or Terminated; or their Business Charter has been Revoked, and the Company still wants to conduct Business then the Company - the Corporation or LLC - will need to be Reinstated by the Secretary of State or the state Departments of Treasury or Taxation.

Some states call the process of bringing a Business back into Good Standing Reinstatement. Other states call the process Revival.

After a Corporation or LLC initially registers with the Secretary of State, most states require Companies to file some form of report with the Secretary of State or with the state Departments of Treasury or Taxation on a regular basis, usually yearly, sometimes biennially.  In most states, this report is required even if a Compamy has done no business in that state during the prior year.

If a registered Company does not file its required reports with the Secretary of State or the state Departments of Treasury or Taxation on time, that Corporation or LLC is at risk.  This could result in the suspension of the Business by the Secretary of State or the state Departments of Treasury or Taxation.

A suspended Corporation or LLC cannot legally conduct Business and may not sue or defend a law suit.  Also, contracts made by a suspended Business can be voided at the option of the other party.  Most importantly, it may be a criminal act to attempt to exercise any of these functions.

When a Corporation or LLC is Adminstratively Dissolved the assets of owners - shareholders for a Corporation, Members for a LLC - may be at risk.  An Administratively Dissolved Corporation or LLC is at risk of losing its legal liability protection.

The definition of "Good Standing" varies from state to state but it usually means that a Corporation or LLC has filed all its required reports on time and has paid all required business fees.  In some states, "Good Standing" means that the business is up to date with its tax requirements.

A Business that is not in Good Standing for a certain period of time (the time period varies from state to state) risks being Administratively Dissolved, Involuntarily Terminated or having its Charter Revoked.  An Administratively Dissolved Corporation or LLC is at risk of losing its legal liability protection.

The state wants to make sure they get their due.  There may be penalties.  And the penalties usually increase in proportion to the time since the Corporation or LLC was Administratively Dissolved.

In some states expedited processing is available for an extra fee.

Sometimes it may make more sense to just form a new Corporation or LLC than go through the Reinstatement process.

For example, if a Company has not filed its required reports for a number of years then the costs for Reinstatement may be much more than the cost of forming a new Corporation or LLC.  Some states will not allow a Dissolved Corporation or LLC to conduct business until the Company has paid all outstanding fiscal requirements.