If an LLC in IL is "involuntarily dissolved" are they still authorized to work/promote themselves under that name?
3 attorney answers
I agree with my colleagues and would add that even when a LLC is dissolved it can still be given time to wind down its business and liquidate its assets. So, it is possible that the LLC can continue to operate for a period, but it is not meant to continue to promote nor conduct new business. As part of the "winding down" process, the member is supposed to pay off all known creditors and/or set aside money from the proceeds of the liquidated assets. Creditors may be able to make a claim against the dissolved LLC for up to 5 years after dissolution.
Also, if the LLC (or the individual company owner - i.e., the member) continues to use the dissolved LLC to promote or conduct new business or promote the member's interests, the individual may loose the limited liability/corporate shield of the LLC. So, the member could be personally liable for the debts and liabilities incurred since the LLC was involuntarily dissolved.
This answer is for informational purposes only and is not intended to be legal advice nor does it establish an attorney-client relationship. Please contact me to discuss further. Otherwise, you need to consult a local business lawyer to obtain legal advice that is tailored to your circumstances and facts. Good luck to you.
The answer to this question you may also want to look at the court order for dissolution and state law/case law. The may contain specific restrictions on using the trade name in addition to using the entity. This is because the goodwill and trade name/ trademark is potentially separate from the actual LLC. And although the owner may be barred from using that LLC, it does not necessarily follow that he cannot use the trade name in conjunction with a product or service via a DBA or perhaps even another entity. However, a local attorney would best be able to answer your question.
I hope this helps.
Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.
As a general principle, if the secretary of state, state attorney general proceeded, or judicial action resulted in an involuntary dissolution this has the same legal effect as a voluntary dissolution. That means that this entity cannot do business under that entity. If it does so, the members may be liable for administrative actions by the state and for possible civil claims for fraud, among others.
Contact a business attorney immediately if your entity has been dissolved. The entity may be able to be reinstated, depending on the circumstances. This is not something to guess about or do without legal advice.
DISCLAIMER—This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship.