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Can we legally re-open 2 businesses under their original names after we've walked away from their legal financial obligations?

Asked over 2 years ago - California

Business

I own 2 small businesses in CA. One is an S Corp the other an LLC. I had to file personal bankruptcy (joint husband & wife) 3 months ago and in addition to the personal debt we inccured, we need to dissolve the businesses as we do not want to be responsible for the debts associated with each business. However, each of the businesses continue to provide a small income with internet presence and the LLC has local name brand recognition. Can we change the names of each of the businesses to XYZ dba original names? Do we have to clearly change business names, addresses, toll free numbers, etc? Are there legal documents regarding this that I could read?

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Attorney answers (2)

Dana Howard Shultz

Reputation Level 15

Answered over 2 years ago. Business Attorney in Oakland, CA.

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I'm a bit confused. On the one hand, you write that the entities must be dissolved. On the other hand, you state that you want to change the names of the entities.

If your objective is to continue receiving revenue / publicity from the businesses, then the businesses will continue to be burdened by their debts. You cannot keep the assets / revenue and discard the liabilities / expenses.

If you dissolve the entities, their names will become available for you, or someone else, to use in the future.

The first link below addresses changing the name of a business entity.

Statuses governing fictitious business names are available at the second link below.

Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.

How do I change the name of my business entity?

Business and Professions Code - fictitious business names

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Kaiser Wahab

Reputation Level 14

Answered over 2 years ago. Business Attorney in New York, NY.

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I am not a bankruptcy attorney, nor do I practice in CA, but I believe the goodwill and trade names of the dissolved entities are at issue. In other words, you beleive the names have value and could be used in conjunction with a new entity to generate revenue. I would look at what the bankruptcy authority/court did in liquidating your business assets with regard to the trade names. Getting a DBA with those names is perhaps possible if the creditors did not lay claim to the trade names. More importantly, however, I suggest you consult with an attorney in making that determination as this does not sound like a simple analysis.

Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.

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