Legal Question in Business Law in New York

Re: Inactive Corporations?

There are many ways a corporation may become inactive (failure to pay franchise tax, vote, certificate of incorporation, etc.).

If the corporation is inactive it legally cannot do business in NY. However, even if it cannot legally do business, many companies actually do business although inactive. As a litigator, I see the problem when entering the courthouse. I have individually sued owners of a corporation since the company was doing business although inactive. When I represented a company that wanted to sue in NY, although inactive, I had to re-activate the company prior to commencing the lawsuit.

The best way to find out if the company is inactive is to contact the NY Secretary of State.

Mike.