Submitted by Anonymous on Fri, 01/22/2010 - 21:21
Posted in
Is it illegal for a company to say they are a LLC, have a business in Massachusetts and conduct business in MA when they are not registered with the SOS? I looked up the 2 companies, and there is no record of one but the other had an involuntary Dissolution in 2007 by court order. The only thing they did was add one word to the LLC but they are also not registered with the SOS.
Is it illegal to represent that fact and also would it be illegal to even conduct business in the state? I should add that one of the companies is a law firm, the attorney doesd not use his full name only his last name & Associates LLC.
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A rose by another other name
A business, or individual conducting a business, can call itself whatever it wants.
However calling yourself something does not simply make it so. An entity is not a corporation or an LLC just because Inc. or LLC appear at the end of the name. In order to be a recognized legal entity, the business must file the appropriate documents with the Secretary of the Commonwealth, pay the appropriate fee(s) and file its annual report (with fee). Additionally, the entity must adhere to certain legally required formalities with respect to record keeping and conducting business. If an entity does all of this, it enjoys the benefits of an incorporated or LLC status, which include legal liability protection for the owners/members/board etc., and tax benefits. If not, neither the state, nor the IRS, will recognize the business as an LLC or corporation.
A person or entity need not be an LLC or corporation in order to conduct business in MA, many businesses have no legal entity status.
Unless you are shareholder, owner, member, etc and/or are planning on suing a business and need to know if you may sue the individual instead of, or in addition to, suing the entity, I am not sure how a company's failure to maintain it's legal status would affect you.