Do you want to know how to dissolve an LLC in Maryland? There can be several reasons why you might choose to dissolve an LLC in Maryland. Perhaps the company is no longer profitable, or maybe you’ve decided to move on to other ventures. Whatever the reason, you can easily dissolve your LLC in Maryland by following the right steps.
In this article, we’ll walk you through the steps involved in dissolving an LLC in Maryland. We’ll also provide some tips on how to make the process as smooth and stress-free as possible.
How to Dissolve an LLC in Maryland?
To dissolve the Limited Liability Company in Maryland mandates some subsequent steps. The first step is to track the Operating Agreement of Maryland LLC. Next, you must submit an Article of Dissolution to the Maryland State Department of Assessments and Taxation Charter Legal Department. Finally, to notify creditors, distribute all LLC assets, and close all tax accounts. Once these process steps are done, the LLC is officially dissolved. Now, let’s comprehend each of the steps in detail:Step #1: Track LLC Operating Agreement
Track the LLC operating agreement’s requirements in dissolving an LLC in Maryland is one of the essential steps. Because an Operating Agreement effectively governs your Limited Liability Company. And the LLC has to follow the conditions of an operating agreement to avoid violating state law. Conduct a dissolution meeting of LLC members. In order to dissolve the LLC in accordance with the Operating Agreement, a majority vote of all of the members is required. And the members have to sign a written agreement to dissolve the Limited Liability Company. The Maryland LLC Operating Agreement lays out the ownership percentage of each member, how the company is managed, and what happens if a member decides to dissolve the LLC.Step #2: File an Articles of Cancellation
Dissolving an LLC requires the filing of Articles of Dissolution. The Articles of Cancellation must be signed by all members of the Limited Liability Company. This certificate should be submitted to the Maryland State Department of Assessments and Taxation Charter Legal Department as soon as it is completed.
How to File Maryland LLC Articles of Cancellation?
Below mentioned are the few steps to file Articles of Cancellation in Maryland to dissolve a Limited Liability Company:- The name of the LLC must be included in an Article of Dissolution.
- The date of LLC formation and reason for dissolution.
- The signatures of all LLC members should be included.
- The Articles of Dissolution filing fee must be paid.
- Notify the debtors about the LLC’s dissolution.
- Close all bank accounts and cancel all licenses and permits associated with the Limited Liability Company.
Step #3: Close Tax Accounts, Notify Creditors, & Distribute Assets
After filing the Articles of Cancellation, the LLC’s members must notify all creditors about the LLC’s dissolution. The members must notify government agencies interested in the LLC’s affairs. Once the LLC has been dissolved, its members can liquidate the company’s assets and distribute the retrievals to the LLC’s creditors. The members must also file a Limited Liability Company final tax return for the LLC and pay any due taxes. Now, let’s take a brief look at each of them individually.1- How to Notify Creditors?
Generally, LLCs must notify creditors about the company’s dissolution to protect themselves from liability. A Maryland LLC dissolution notification should also be sent to them. However, after a Limited Liability Company has been dissolved, creditors only have a short period of time to make claims against the company.2- How to Distribute Assets to Members?
After notifying the creditors, all the remaining assets must be distributed to the members. The assets must be distributed under the LLC’s operating agreement or a written agreement between the members. If no operating agreement exists, all assets will be shared evenly amongst the members.3- How To Pay Outstanding Debts and Taxes?
Prior to dissolution, the LLC must settle all financial obligations, including taxes and debts. In Maryland, the final tax return must be submitted to the Department of Assessments and Taxation. And the members don’t need to acquire a tax clearance certificate. On the other hand, if you file nationwide taxes for the Limited Liability Company, you need to check the IRS form’s final tax return. The LLC registered as a corporation must check the 1120 IRS form. Or the LLC, registered as a partnership, must go through the 1065 IRS form.How to Notify the IRS to Dissolve the LLC in Maryland?
To notify the IRS about the dissolution of a Limited Liability Company in Maryland, you must file a state’s final tax return and a copy of the dissolution Certificate of the LLC. You must also include a member’s statement that the LLC has been dissolved on this tax return. And to gather all of your financial information for the year and submit it to the state tax office.
The certificate of dissolution must include a few clauses, like the name and the dissolution date of the limited liability company, the LLC is dissolved, and all the assets have been distributed to its members under Maryland law, LLC is no longer in business, and has no remaining liabilities, and the Signatures of authorized persons.
What is the Filing Fee to Dissolve Maryland LLC?
The filing fee to dissolve Maryland Limited Liability Company is 100$. And an additional expedited service for processing papers costs $50. However, some costs involved in dissolving the LLC in Maryland are1. Article Of Cancellation Filing Fees
The Limited Liability Company must pay a filing fee to the state when it files its Articles of Cancellation.2. The Publication Costs
If the LLC is required to publish notice about dissolution in a local newspaper, it will incur publication costs.3. Debts and Obligations
The Limited Liability Company may be liable for debts and obligations incurred during its presence.How to Dissolve Foreign LLC in Maryland?
There is no specific process to dissolve a foreign Limited Liability Company in Maryland because this process is the same as that for a domestic LLC. However, the foreign Limited Liability Company must follow the general dissolution procedures outlined in the Maryland LLC Act. Additionally, the foreign LLC must also notify all members about dissolution. And file a notice of termination with the Department of Assessments and Taxation State in Maryland about foreign dissolution.Here’s How Goodbye Startup Can Make It Easier For You to Dissolve an LLC in Maryland
It’s essential to plan appropriately if you’re dissolving your LLC in Maryland for the first time, since the procedure may be complicated and time-consuming. The process of dissolving an LLC requires the filing of several documents. A lot of time and money might be lost if you make a mistake.
It’s recommended that you get professional help. Hiring an expert from Goodbye Startup can help you save both time and money. They will complete the necessary paperwork to dissolve your Maryland LLC while making sure you meet all legal requirements.
Goodbye Startup experts assist company owners in Maryland with closing down their businesses under applicable federal and state laws. If you contact them, they will help you dissolve your LLC in a manner that is compliant with the law.
Schedule a Free Consultation Call With Experts at Goodbye Startup by clicking here.
