What Does It Mean If An LLC Is Inactive?

What happens when an LLC expires?

For example, in California an LLC expires when the members unanimously consent to file a certificate of cancellation.

After the certificate is filed, registration of the LLC will be canceled and all of its powers, rights and privileges will cease..

How long does an LLC stay active?

What’s the LLC Annual Fee? ​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.

How do I close an inactive company?

To apply to strike off your limited company, you must send Companies House form DS01. The form must be signed by a majority of the company’s directors. You should deal with any of the assets of the company before applying, eg close any bank accounts and transfer any domain names.

Can two businesses have the same name?

Because business names are registered on a state-by-state basis, the fact that a company in another state has the same name as yours is usually not a cause for concern. However, you are right in that there could be intellectual property issues (namely, trademark) when two companies have the same name.

How do I make sure no one has my business name?

Contact the Secretary of State’s Office in your state to register your business. Registration is required of corporations, partnerships and limited liability companies. States keep records of registered businesses and offer searchable databases to prevent others in the state from using the same name.

Can you use an LLC name that is inactive?

If the company is inactive, you may not be able to use its name. If the company is listed as dissolved, the name may be available for your use.

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.

Can I use a name for a business that already exists?

A trademarked name is protected on a national basis. If a company name already exists as a trademark, you can’t use it even if the company doesn’t operate in your state. To see if a specific company name exists and is trademarked, search for the name using the USPTO website’s electronic search system.

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 make my company inactive?

To make your company dormant, you first need to tell your Corporation Tax office, clients and agents that you’ll no longer be trading. You’ll also have to chase any unpaid invoices and prepare final accounts up to the usual financial year end.

Can multiple businesses have the same name?

The name of each and every company should be unique. Two companies can have the same name but that too in the following way: … Sued by the owner of the one who first filed the name. Also, if the name is trademarked then you would be in violation of trademark laws and would be prevented from using it.

What is an inactive business?

An inactive business is a business that still exists but has no activity, which means no business transactions during a specific year. A business is not inactive if it conducts even minor transactions, or if it receives payments during a year from previous business transactions.