You must properly dissolve a foreign LLC that is registered in Maryland but that you want to stop using. An LLC’s dissolution is a big choice that needs to be carefully thought out and done in accordance with state rules. The procedure for terminating a foreign LLC in Maryland is described in this article, along with other relevant queries.
Review your Operating Agreement as Step One
Examining your operating agreement to check if it has any provisions addressing dissolution is the first step in dissolving your foreign LLC. If so, you must adhere to the rules laid out in the agreement. If such provisions are absent, you must abide by state law.
You must submit Articles of Dissolution to the Maryland Department of Assessments and Taxation in order to dissolve your foreign LLC there. The name of the LLC, its incorporation date, and its reason for dissolution must all be listed in the articles. The articles can be submitted in person, via mail, or online.
Step 3: Revoke all business permits and licenses Any business licenses and permissions that your LLC currently holds must be canceled after submitting the Articles of Dissolution. Additionally, you need to submit a final tax return and settle any unpaid fines or taxes.
You must renew your LLC annually in Maryland if you want to keep running your business there. Approximately 60 days prior to the expiration date, the state sends out letters for renewal. You can renew in person, via mail, or online. The $300 renewal fee applies.
Your LLC could be forfeited if you don’t submit your annual report on time or pay the required costs. In certain situations, you can reinstate your LLC by submitting an Article of Reinstatement to the Maryland Department of Assessments and Taxation. The name of the LLC, the forfeiture date, and the reason for forfeiture must all be mentioned in the article.
A Maryland LLC that has been forfeited has lost its good standing and is no longer permitted to operate in the state. To reinstate itself, the LLC must submit an Article of Reinstatement.
Finally, dissolving a foreign LLC in Maryland entails submitting Articles of Dissolution, terminating any business licenses and permissions, and submitting a final tax return. The $300 renewal fee must be paid, and an Article of Reinstatement must be submitted in order to reinstate a forfeited LLC. To make sure you adhere to all legal requirements, it is advisable to consult an attorney or a tax expert.
The forfeiture procedure is not covered in the article “Closing a Foreign LLC in Maryland: A Step-by-Step Guide”. It concentrates on the procedures necessary to voluntarily dissolve an out-of-country limited liability corporation (LLC) in Maryland and the paperwork that must be submitted to the state.
After a firm has been dissolved or suspended by the state, its status might be restored by “reinstating” it. This procedure entails paying any unpaid fines, penalties, or taxes as well as submitting the required papers to the state. The business can continue operations and reclaim its privileges and rights after being reinstated.