Dissolution of a limited liability company (LLC) signifies the end of the entity’s legal existence. What happens to its name, though? Can someone else still use it? The answer to this query and other details about LLC winding up, termination, and dissolution will be covered in this article.
The name of a disbanded LLC cannot be used. An LLC’s name can be used by another company after it has been dissolved. However, using an LLC’s name after it has been disbanded may have legal repercussions, such as trademark infringement and consumer confusion. Before using a name for your company, it’s crucial to perform your due diligence and check on its availability.
No, they are not interchangeable. Dissolution is the procedure used to formally dissolve an LLC. The act of concluding the LLC’s unfinished business, such as paying off debts and transferring assets to members, is referred to as winding up. Termination is the last action in the procedure, which entails submitting the required documentation to the state and formally terminating the LLC’s existence. Why Would an LLC Be Terminated?
An LLC may be dissolved for a number of reasons, such as: The LLC has ceased operations or has no more assets. It has served its function or has reached the end of its intended existence. It is unable to make payments on its debts or obligations. How Does Something disband? – The LLC’s members decide to voluntarily disband the business. The steps provided in their state’s LLC statutes must be followed by the members in order to dissolve an LLC. This often entails notifying any impacted parties, including as creditors and workers, and submitting articles of dissolution to the state. The LLC must also finish the process of winding up, which included paying off debts, distributing assets to members, and taking care of any unresolved legal issues. How Do I Dissolve My LLC?
– Resolving any unresolved debts and obligations
– Liquidating assets and distributing them to members
– Filing final tax returns and paying any taxes due
– Cancelling any licenses, permits, or registrations
– Notifying any affected parties, such as creditors and employees
– Documenting the LLC’s winding up process and distributing the documentation to members
In conclusion, it is not advised and may have legal repercussions to use the name of a disbanded LLC. Before selecting a name for your company, it’s crucial to check on its availability. State LLC statutes specify the procedures for dissolution, winding up, and termination—all three of which are distinct from one another. If you’re thinking about closing your LLC, be sure to finish all necessary activities and record the procedure.