What Does Involuntary Dissolution Mean in Illinois?

Involuntary Dissolution in Illinois

Involuntary dissolution describes terminating a corporation without positive action by the corporation. Grounds for involuntary dissolution include failure to file reports or pay fees. The process involves a court order, often due to creditor lawsuits.

Voluntary Dissolution and Reinstatement Process

Voluntary dissolution involves shareholders consenting to dissolve the corporation. After voluntary dissolution and winding up affairs, directors and officers generally won’t face personal liability for corporate actions. To withdraw a foreign LLC in Illinois, submit a withdrawal application and $100 fee. Reinstating an involuntarily dissolved corporation requires filing an Application for Reinstatement and any missed Annual Reports. Without reinstatement, the entity can’t legally do business, faces accumulating state fees, and possible state legal action. To reinstate a dissolved LLC, submit a completed Application for Reinstatement and pay owed amounts. The reinstatement process allows the entity to legally operate again.

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