Legal Question in Entertainment Law in California

Can a Nevada LLC (a production company) that is in revoked status legally do business in another state, California, and can they legally enter into a business contract with an individual? If no, then is that contract null and void?

Asked on 7/07/16, 1:41 pm

1 Answer from Attorneys

Keith E. Cooper Keith E. Cooper, Esq.

A legal entity that is registered as a separate entity by the state, such as a corporation or LLC, can enter into an agreement as an individual entity in the same way a person can enter into an agreement as an individual. When a company's registration is revoked, it is legally dead. Just as a dead person can not form an agreement, a dead entity can not conduct business or enter into contracts. An entity formed in one state must "qualify to do business" in another state, which is similar to forming the entity in the new state. With some exceptions, the entity may not legally conduct business in the second state until it has done this. An entity would not be able to appear in court to enforce a contract, or defend a lawsuit, while its registration is revoked. That said, if there are joint parties on one side of a contract (such as an individual and a company), and there is a remaining party that has legal status, that party could enforce the contract against the other side.

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Answered on 7/14/16, 6:01 pm

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