Can I Use An LLC Name That Is Inactive?

Can you trade under a dissolved company?

In legal terms, when a company is dissolved, it ceases to exist.

It cannot still be trading – although a person may trade (misleadingly) using its name.

Assuming that you entered into the contract with your customer before the company was dissolved, then the company was never your customer..

Does having an LLC help with taxes?

LLCs give business owners significantly greater federal income tax flexibility than a sole proprietorship, partnership and other popular forms of business organization. Make sure you have a financial plan in place for your small business.

How do I activate an inactive LLC?

Here are the general steps needed to reactivate a dissolved LLC.Research your state’s law regarding LLC reactivation. … Hold a vote regarding LLC reinstatement. … Withdraw the LLC’s articles of dissolution. … File for LLC reactivation. … In the alternative, form a new LLC. … Get squared away with tax authorities.

How do I dissolve an inactive LLC?

How to Close an Inactive BusinessDissolve the Legal Entity (LLC or Corporation) with the State. An LLC or Corporation needs to be officially dissolved. … Pay Any Outstanding Bills. You need to satisfy any company debts before closing the business. … Cancel Any Business Licenses or Permits. … File Your Final Federal and State Tax Returns.

How long does an LLC stay active?

​The LLC annual fee is an ongoing fee paid to the state to keep your LLC in compliance and in good standing. It’s usually paid every 1 or 2 years, depending on the state.

What happens if LLC has no income?

But even though an inactive LLC has no income or expenses for a year, it might still be required to file a federal income tax return. LLC tax filing requirements depend on the way the LLC is taxed. An LLC may be disregarded as an entity for tax purposes, or it may be taxed as a partnership or a corporation.

How do I reactivate my company?

Administrative restoration is a procedure for restoring your company if the business was forcibly dissolved e.g. struck off for not filing accounts on time. It’s possible to apply for administrative restoration by contacting Companies House and completing the administrative restoration form.

Can two companies have same name?

A company cannot have the same name as another registered company. Any company formation or change of name application containing a company name that is the ‘same as’ or ‘too similar’ to an existing name will be rejected by Companies House. These rules exist to protect the general public from being misled or confused.

How do I reactivate a dissolved company?

If your corporation was involuntarily dissolved because of an administrative oversight, your state’s laws may allow you to “cure” the deficiency within a specified time period by filing certain documents with the secretary of state’s office and paying fees to reactivate the company.

Can you reactivate a dissolved LLC?

If you have dissolved an LLC and later choose to reactivate it, you will have to contact your Secretary of State’s office. Fortunately, in many cases, paying a fee and refiling paperwork is all that is needed. … Request reinstatement of your business from your Secretary of State office (see the Resources section).

What happens to creditors when a company is dissolved?

Any debts that have not been repaid from the sale of company assets will be written off and the creditors will not be able to pursue you personally.

Can an LLC get a tax refund?

Can an LLC Get a Tax Refund? The IRS treats LLC like a sole proprietorship or a partnership, depending on the number if members in your LLC. This means the LLC does not pay taxes and does not have to file a return with the IRS.

What does an inactive LLC mean?

When a company has an inactive business status, this means that it still exists in the eyes of the law but that it has no activity taking place. It could also mean that it has had no business transactions take place in a particular year.

Can I use a company name if it has been dissolved?

Can I use a dissolved company name? The names of dissolved limited companies can be registered by new and existing companies. There are no legal restrictions when choosing such a name. However, one important point you should consider is the reputation of the dissolved company.

Does an LLC last forever?

Members create a limited liability company by filing articles of organization with the Secretary of State. Once formed, the company generally exists indefinitely and can operate for as long as desired. When the owners want to close the business, they must dissolve it.

Are LLC finances public?

Corporations are mandated by laws in all states to allow all owners and investors to examine the books with proper notice. The laws are less clear for LLCs. However, to operate smoothly, LLCs must show financials to their members, lenders, government entities and prospective creditors or investors.

What to do after forming an LLC?

What You Need To Do After Forming An LLCObtain Any Necessary Business Licenses and Permits. … Get a Seller’s Permit. … Get an Employer Identification Number (EIN) … Apply for S Corporation S Treatment (If Applicable) … Open a Business Bank Account. … Apply for a Business Credit Card. … Insure Your Business.More items…•

Do I have to file LLC taxes if no income?

All corporations are required to file a corporate tax return, even if they do not have any income. Thus, if an LLC has elected to be treated as a corporation for tax purposes, it must file a federal income tax return even if the LLC did not engage in any business during the year.