Remember to keep your LLCs up to date

[James]

A couple of months ago I was going through the process of selling a building that of course was held in a LLC. 

Well we made it all the way into escrow and as I was working with the escrow team they let me know that the LLC that held the property was inactive. They said the only way to close was to get it activated again. 

Wow! This gave me a heart attack almost because one I did not realize the LLC had lapsed and two I did not want to put any risk to the closing process on the property. 

Luckily it was just a quick phone call to the state and paying some filing fees I did not pay. After that the LLC was activated and we were able to close. Lucky for us the state we were working with moved quickly and there was no delay to closing. 

It did make me realize though I had to keep better track of the different LLCs and make sure I am paying all the filing fees and renewals on time. I have built myself a spreadsheet to help manage this process. 

Have you ever been put in a pickle because of forgetting to do some LLC paperwork? How did you make sure not to fall into the same situation again?  

[Mila]

How often do you actually have to update these? I was never properly educated on this stuff so I often find myself being told something and not having any idea about it, this is the case with most tax and legal issues. 

[James]

4 hours ago, Mila said:

How often do you actually have to update these? I was never properly educated on this stuff so I often find myself being told something and not having any idea about it, this is the case with most tax and legal issues. 

There are often annual filing that are supposed to take place. Sometimes a annual fee too.