How long do LLCs last?
Asked by: Krystel Quitzon DVM | Last update: December 3, 2025Score: 4.4/5 (40 votes)
An LLC can operate indefinitely as long as it continues to comply with legal requirements and maintain its business activities. Unlike some business structures, an LLC has no predefined expiration date. However, its duration may be subject to state regulations and the terms specified in its operating agreement.
Do LLCs ever expire?
Limited liability companies (LLCs) have a lifecycle. They're formed, they do business, and they terminate. And while it's true that LLCs have a right to exist forever—an entity characteristic known as perpetual duration—the fact is, most will one day terminate.
What is the lifespan of an LLC?
By default, most states assume an LLC's term to be "at-will" or "perpetual," meaning it'll continue to exist indefinitely unless the members decide to dissolve it. However, some business owners may choose a specific duration for their LLC, especially when embarking upon a time-sensitive project or joint venture.
How long is an LLC license good for?
This is a question with more than one possible answer because it's determined by the LLC's articles of organization. An LLC can be basically unending or perpetual with no ending or expiration. Or, it can be created for a specific purpose with a defined end date that's stated in the articles of organization.
How often does LLC have to be renewed?
The renewal fee for a limited liability company, or LLC, has to be paid every one or two years, with the frequency varying by state. The LLC business entity is created at the state level. It has the qualities of both corporations and partnerships.
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How long is LLC valid for?
An LLC can operate indefinitely as long as it continues to comply with legal requirements and maintain its business activities. Unlike some business structures, an LLC has no predefined expiration date. However, its duration may be subject to state regulations and the terms specified in its operating agreement.
How do I make my LLC active again?
After fixing the cause of noncompliance, the next step is for the entity to file a reinstatement ( sometimes called a revival) with the Secretary of State and pay any state fees. Reinstating a business requires filing with the Secretary of State, and often with the Department of Revenue or Taxation.
How do I know if my LLC is expired?
"To check an LLC's status, you will need to contact the Secretary of State office in the state where it's registered. Most states provide online business entity databases to look up status and download Certificates of Good Standing."
Is an LLC hard to maintain?
If you can't show evidence that your LLC is a real business, you could lose the very benefits it's supposed to confer. You'll also lose those benefits if your LLC is dissolved, which can happen if you fail to file your annual reports and pay the related fees. Fortunately, maintaining an LLC isn't difficult.
Do I file my LLC taxes with my personal taxes?
The IRS disregards the LLC entity as being separate and distinct from the owner. Essentially, this means that the LLC typically files the business tax information with your personal tax returns on Schedule C. The profit or loss from your businesses is included with the other income your report on Form 1040.
What is the biggest disadvantage of an LLC?
A major disadvantage of an LLC is that owners may pay more taxes. When setting up as a pass-through to owners, they are subject to self-employment tax.
Can you keep an LLC inactive?
Specific State Requirements
Although the general rule applies across most states in the United States, each one has its own specific requirements for inactive LLCs. California: LLCs in California are required to pay an annual minimum franchise tax of $800, even if they have no income or activity.
How long can an LLC not make money?
As an LLC, you want to be careful to try not to report losses for more than two years. Otherwise, the IRS may decide to classify your business as a hobby rather than an actual business. If this happens, you can't deduct your business expenses for tax purposes.
What happens to LLC if not used?
Fear not, the IRS recognizes your LLC as a living, breathing entity regardless of the amount of activity, gains or losses it experiences. It's absolutely acceptable for your company to ebb and flow through trepidation, solid footing and full- fledged confidence, then back to trepidation on a quarterly or annual basis.
Are LLCs forever?
Unlike humans, LLCs and corporations exist forever until you terminate them. It's never wise to leave unused legal entities laying around unused. Dissolve them when you are done with them.
What are the risks of an LLC?
Just because you have an LLC doesn't mean you can do whatever you want without any personal risk. If your business takes reckless, wrongful or fraudulent actions, the courts could find you personally liable.
Can an LLC last indefinitely?
In most states, an LLC is considered a perpetual entity, meaning it can exist indefinitely unless it's dissolved or terminated. However, some states have specific requirements for LLCs to maintain their status, such as filing annual reports or paying fees. One of the key benefits of an LLC is its flexibility.
What is the biggest benefit of an LLC?
An LLC helps separate your personal liability from the company's, the same way a corporation does. But LLCs also allow business owners to count the company's profits as personal income and avoid corporate double taxation, similar to a simple sole proprietorship or partnership.
What happens if I don't renew my LLC?
If you forget to file your annual report, you'll receive a warning letter from the Secretary of State. If you still don't file, the next step is administrative dissolution. This means that your LLC is no longer recognized as a legal entity, and you lose the protections that come with being an LLC.
What is the life of an LLC?
Similar to corporations, LLCs shield personal assets from business debt. However, note that LLCs have a limited life of about 30 years, depending on the state, and do not have stock (and thus do not get the benefit of stock ownership and sales). Currently, all 50 states recognize the LLC business form.
What happens if you don't update your LLC?
Administrative dissolution or revocation.
In a worst-case situation where a corporation or LLC repeatedly fails to respond to requests for required filings, the entity can be administratively dissolved by the home state or revoked by the foreign states.
Should I let my LLC expire?
If a corporation or LLC is inactive by means of revocation or administrative dissolution, it cannot legally transact business in a state. This can impact the entire organization's ability to engage with clients, creditors, and other government agencies.
Can I use an old LLC for a new business?
Yes. You can add a new business function to an already existing LLC.
Is it better to reinstate LLC or start a new one?
Bringing your company back into good standing via reinstatement gives your business a second chance or second life in almost half the time it takes to open a new LLC.