diff --git a/src/engine/objects/Guild.java b/src/engine/objects/Guild.java
index 5b3422dd..9b27ba37 100644
--- a/src/engine/objects/Guild.java
+++ b/src/engine/objects/Guild.java
@@ -848,14 +848,12 @@ public class Guild extends AbstractWorldObject {
         if (!DbManager.GuildQueries.UPDATE_PARENT(subGuild.getObjectUUID(), WorldServer.worldUUID))
             Logger.debug("Failed to set Nation Guild for Guild with UID " + subGuild.getObjectUUID());
 
-        // Guild without any subs is no longer a nation
-
         if (subGuild.getOwnedCity() == null) {
             subGuild.guildState = GuildState.Errant;
             subGuild.nation = Guild.getErrantNation();
         } else {
             subGuild.nation = subGuild;
-            subGuild.guildState = GuildState.Errant;
+            subGuild.guildState = GuildState.Sovereign;
         }
 
         // Remove from collection