General Process
To dissolve a Maryland LLC, file the Articles of Cancellation with the Maryland State Department of Assessments and Taxation (SDAT). Provide the name of the LLC, its SDAT Number, and the name and address of a Maryland registered agent. Settle all outstanding debts and liabilities. Review financial records and contact creditors. Once settled, liquidate remaining assets. Distribute assets per the LLC’s operating agreement. Close all business-related accounts.
Detailed Steps
1) Follow the operating agreement
2) Obtain written consent of all members
3) Draft a resolution to dissolve
4) Cancel licenses and permits
5) Notify creditors
6) Distribute assets
7) Close tax accounts
Costs and Timing
How much does it cost to dissolve an LLC in Maryland?
It normally takes the Maryland SDAT up to 8 weeks to process a dissolution filing. By paying the $50 expedited fee, you can get your application processed within 7 business days.
Required Approvals and Notices
Can I dissolve my LLC without notifying my members in Maryland? If you have multiple members, a vote will be required to approve dissolution based on the operating agreement procedure. You’ll need to provide notice of the meeting so they can vote.
Official Filing
To officially dissolve your Maryland LLC, complete and file the Certificate of Dissolution with the Maryland Secretary of State. This form requires:
- LLC Name: Provide the exact name as it appears on your Articles of Organization.
Compliance and Closure
Although the state doesn’t require tax clearance before dissolving your LLC, it’s important to resolve outstanding tax and financial obligations before filing the Certificate of Dissolution.
To close your Maryland LLC, you’ll need to pay a $100 filing fee to the Maryland Secretary of State. The LLC is considered dissolved either when the SDAT approves your articles of cancellation or on the effective date of those articles.
Voluntary Dissolution
To voluntarily dissolve your LLC, first investigate the formation papers, including the articles of organization and operating agreement. These typically detail the procedures to wind down the business.
The filing fee for Articles of Dissolution in Maryland is $100. You need to file by mail to:
[mailing address]
Following the right procedures will protect you from liabilities and allow you to move forward without issues.
- Step 1: Vote to Dissolve the LLC
- Step 2: Notify Creditors
- Step 3: File Final Tax Returns
- Step 4: File Articles of Dissolution
- Step 5: Distribute Assets
- Step 6: Close Accounts and Cancel Licenses/Permits