Fixing an "Inactive" business entity status—meaning reinstating the entity to "Active" and "Good Standing"—often takes only a few minutes to a few business days if done online, once all required documents and fees are submitted. In many states (including Florida), if you pay by credit card or through an approved system, reinstatement posts immediately or within 2–3 business days. If payment is by check, processing follows the order received and takes longer.
Fastest Turnaround
- Online, with credit card/prepaid account: Immediate to 2–3 business days for most states if all filings and payments are correct.
Delays and Exceptions
- By mail (check/money order): Processing could take a week or more depending on agency backlog and delivery times.
- Outstanding Issues: If you owe back taxes, reports, or face name unavailability (another business claims the name), actual turnaround may increase significantly.
- Complex Cases: In states where tax clearance is required (e.g., New Jersey), you must satisfy all tax and filing debts before reinstatement approval, which can add days to the process.
High-Volume Lender Insight
- If your applicant fixes everything and files online, “Inactive” can become “Active” in under 48 hours.
- If your decision engine flags “Inactive,” treat it as KO until the Secretary of State verifies renewed Active/Good Standing—no holds, no exceptions.
In summary: reinstatement is generally fast when a merchant acts promptly and pays online, but the burden and clock is entirely on them, not you as the lender.
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