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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: muttonchops on April 06, 2015, 07:50:09 PM

Title: Business Entity-Type Issues
Post by: muttonchops on April 06, 2015, 07:50:09 PM
I need help!

I read the "Joy of Self-Employment" and got excited about starting a small business with my wife recently but I think my excitement has gotten us into trouble. I'll try to summarize what has transpired as succinctly as possible in bullet format:

After that long explanation, the question at hand is:
Should we form the LLC while the corporate name change is being processed? As far as a I know, as long as the name is available at the time we organize the LLC, it will be granted. It is an online process so I believe it is instant. Hopefully, this would then prevent the corporate name change from being processed since that is done manually and will take time. When the person at the department of state tries to process the corporate name change, they should see that the name is unavailable (due to the new LLC) and deny the change.

My fear is that the corporate name change gets processed and then we cant organize the new LLC until after we have dissolved the corporation. In fact, there might even be a waiting period of 6 months, 1 year, or more before the name can be used again after the corporation is dissolved but I am not sure.

I tried calling the state to ask if they could cancel the corporate name change but they said there is no way to guarantee that the process can be stopped. They told me to fax the department that processes corporation documents and request the amendment not be processed. I did this earlier today but it is not guaranteed that will work.

I hope that makes sense. It is a confusing situation so if its unclear what is going or what I am asking, please let me know.

Thank you for any help!