Entity Forfeiture and Revival in Maryland
The right of the entity to conduct business in Maryland is relinquished. It has no right to use its name. For domestic corporations this means the business has no existence under Maryland laws.
The forfeiture process allows the Department to remove inactive entities not legally terminated in Maryland or notify active entities of oversight in meeting filing requirements. Forfeiture notices identify the delinquency.
Forfeiture happens after “not in good standing”. Reasons are the same: missing paperwork or information filing. Corporations must file a personal property report by April 15 yearly, even with no property. If not filed, forfeiture may begin.
Forfeiture doesn’t happen without warning. Months before, notifications allow issues fixing before forfeiture proceeds. Some companies let this happen if no longer operating in the state.
Reinstating a Forfeited Business in Maryland
How do I reinstate a forfeited business in Maryland?
How do I reinstate a dissolved LLC in Maryland? To reinstate your LLC you need to file a Certificate of Reinstatement with Maryland State Department of Assessments and Taxation. Pay any fees, file missing annual reports and penalties.
We can guide you through the steps for reinstating a business in Maryland. First, determine why it is dissolved. Common reasons include failure to file Annual Reports, pay taxes/fees, maintain a Resident Agent or non-compliance with laws.
The reinstatement process allows a dissolved company to settle obligations with the state. Requirements vary based on laws and entity type. LLCs file a Certificate of Reinstatement, corporations file Articles of Revival. You will also have to file all missing returns, pay fees, obtain a tax clearance certificate.
Reviving a Business in Maryland
Revive a Maryland Limited Liability Company. The Secretary of State can dissolve your LLC if you fail to: file annual reports, appoint/maintain a registered agent, reimburse SDAT for returned checks.
Next, assess and settle debts and liabilities by reviewing records and contacting creditors. Once done, remaining assets can be liquidated and distributed among members under the LLC’s agreement.
The final step involves closing all accounts – bank accounts, licenses, permits and any other accounts.
It takes 1-2 weeks to hear back on reinstatement. Pay the expedited fee for 24 hour turnaround. Bringing your company back gives your business a second chance to reopen doors and grow.
Reinstatement and Reactivation Process
The process involves: Research State Requirements, File Appropriate Forms – Complete and file the necessary reinstatement forms provided by the state.
If reinstatement isn’t available, reactivate a dissolved LLC by forming a new limited liability company using the old name. The LLC would be a new entity. If you need help reopening a dissolved company, post your need on UpCounsel.