In Maryland, transferring ownership of a Limited Liability Company (LLC) is a simple procedure, but it might be challenging if you don’t know what to do. You can follow the instructions in this article to change the LLC’s ownership in Maryland.
1. Review Your Operating Agreement
Reviewing your operating agreement is the first step in transferring ownership of your LLC. The procedures for selling an LLC should be outlined in your operating agreement. You must abide by Maryland’s LLC rules if your operating agreement does not contain any ownership transfer clauses.
2. Obtain the Agreement of All Members
The transfer of ownership requires the consent of all LLC members. All members should put this agreement in writing and sign it. The LLC might need to be dissolved if there is a dispute.
3. Submit an Amendment to the State of Maryland
Following approval from each member, you must submit an amendment to the State of Maryland. Name, address, and ownership percentage of the new member should all be listed in the amendment. All LLC members must affix their signatures to the amendment.
4. Update Your Tax Information
Following the completion of the ownership transfer, you must update your tax data with the Internal Revenue Service (IRS). This entails getting the LLC a new Employer Identification Number (EIN). How to Apply for an EIN Number in Maryland You can submit an online application through the IRS website to obtain an EIN number in Maryland. As an alternative, you can apply by completing Form SS-4 and sending it to the IRS via mail or fax. In Maryland, is I allowed to act as my own resident agent? In Maryland, you are allowed to act as your own resident agent. You must, though, have a Maryland physical address at which process can be served. You can use a commercial registered agent if you don’t have a physical address in Maryland.
What Distinctions Exist Between an LLC and a DBA? A DBA (Doing Business As) is an alternate business name to your given name or the name of your LLC. A legal entity known as an LLC shields its members’ limited responsibility. A DBA does not offer any sort of defense in court.
How to Change the Name of Your Maryland LLC
In Maryland, you must submit a Trade Name Registration to the State of Maryland in order to add a DBA to your LLC. The new DBA name and the name of your LLC should both be included in the registration. A registration fee is furthermore due.