How do I maintain an LLC in Maryland?
How do I maintain my Maryland LLC? | BetterLegal
What's the next step after registering my business in Maryland?
After successfully setting up your business in Maryland, you need to make sure that you keep your LLC in good standing with the state. This way, you will be able to transact with third parties smoothly, especially with your vendors and clients.
A good standing status shows that your company is compliant with the state requirements. This includes, but is not limited to, payment of annual fees and updating of your company information with the state.
Additionally, certain other formalities are required by the state, like appointing a registered agent for service of process and maintaining a registered office in Maryland.
If you do not have a physical address in the state where you registered your LLC, check out BetterLegal's Registered Agent Service. Through BetterLegal's Registered Agent service, you will receive scanned copies of your important mails and you may also request for physical copies to be mailed to your address for a minimal administrative fee. Subscribe to our service now!
Why is it important to Maintain my LLC in Maryland?
Third parties are able to obtain your good standing status by submitting a request to the Secretary of State in Maryland. If a third party you are transacting with finds out that your company is in bad standing with the state, it may cause unnecessary delays and issues in your business transactions.
Also, failure to comply with state requirements may result to forfeiture, dissolution, or involuntary termination of your LLC.
This is why you should be on top of Maryland's periodic requirements for Limited Liability Companies (LLCs) like yours. Maintain your LLC to avoid any issues and delays in your transactions.
If you need help in maintaining your LLC in Maryland, check out BetterLegal's State Compliance package. We will make sure that your company complies with the state requirements to keep your company in good standing. Subscribe to our State Compliance Service Now!
The Basics of Maintaining Your LLC
There are different administrative tasks that make up the maintenance of an LLC in Maryland, but can be grouped into categories:
- Annual Report: Required filing in Maryland to keep your LLC in good standing
- Articles of Organization: Updating of your LLC information in Maryland
- Operating Agreement: Legal document outlining the internal rules and procedures of a Limited Liability Company
- Licenses and Permits: Documentary requirements for these in Maryland vary depending on the nature of business
- DBAs: Registration of other names a business may go by other than its official name
- Taxes: Money owed to the government for revenues and earnings
Filing your Maryland LLC's Annual Report
If you are planning to file your Maryland LLC's Annual Report, BetterLegal has prepared an easy to follow step-by-step guide for you below. We have also included pertinent information that you need to remember when filing.
When is the due date for my Maryland LLC's Annual Report?
File your Maryland LLC's Annual Report every April 15th. You need to file it with the state every year. The Annual Report may be submitted on or before the due date.
How much do I need to pay for my Maryland LLC's Annual Report?
Prepare a minimum amount of $300 plus any other additional taxes computed to pay for your Maryland LLC's Annual Report.
What information are needed when filing my Maryland LLC's Annual Report?
When filing your LLC's Annual Report, make sure to provide any updated information of your LLC, except for LLC name change. You may only update your LLC's principal office address, department ID number, EIN, Statement of purpose, business email address, and managers' information. Additionally, you are also required to provide your LLC's Personal Property Tax Return information. This is necessary if your LLC owns, leases, or uses personal property in MD or maintains a trader's license with a local unit of government. You must have the following information: a. dates business was conducted in MD b. Fiscal year start and end dates, if applicable c. business's total gross sales or amount of business transacted in Maryland during previous year d. physical location of all personal property within the state of Maryland e. original cost of each piece of personal property declared f. average monthly inventory and inventory open/close dates g. average monthly manufacturing and R&D inventories h. Supplies cost average.
How do I submit my Maryland LLC's Annual Report?
You may submit your Maryland LLC's Annual Report online or by mail.
(1) File online using this link: https://egov.maryland.gov/SDAT/ppf/Start.
(2) By Mail:
a. To file your annual report and personal property tax return, you'll need to fill out two separate forms: Form 1 (Annual Report) and Form 2 (Personal Property Tax Return). You can download these forms from the Maryland State Department of Assessments and Taxation website (https://dat.maryland.gov/Pages/sdatforms.aspx#BPP).
b. Submit the forms: Once you've completed the forms, you can submit them online or by mail. To file online, you can use the Maryland Business Express website (https://egov.maryland.gov/businessexpress). To file by mail, send the completed forms to the Maryland State Department of Assessments and Taxation, 301 W. Preston Street, Baltimore, MD 21201.
c. Pay any fees: There may be fees associated with filing your annual report and personal property tax return. Make sure to check the Comptroller of Maryland's website for the latest fee schedule.
What is the turnaround time for my Maryland LLC's Annual Report?
Your payment or filing submission will reflect on the state's records after seven (7) to ten (10) business days from the date of filing .
What should I do if I miss my Maryland LLC's Annual Report's due date?
Late submission of Annual Report in Maryland is allowed. Late fee is maximum of $500. It is computed as 0.001% of your total property tax or the base penalty, whichever is greater. In addition, 2% interest will continue to accrue for each month you are not able to file. You may file your late submission online or by mail.
If you fail to file even after the grace period, your LLC will lose its good standing in the state. This will reflect in any request for a Certificate of Good Standing.
I missed my Maryland LLC's Annual Report's grace period for late submission, what should I do?
If you also missed the state's grace period for the filing of Annual Report, file the late annual report.
Articles of Organization
If you want to update your company information but it is too early to file for your LLC's Annual Report or maybe you have already filed your LLC's Annual Report, but forgot to update your information, you may still do so by filing an amendment with the state.
BetterLegal may also assist you in filing these amendments. Check out the links below:
- Maryland LLC Change Principal Office Address
- Maryland LLC Resolution to Change Registered Agent
- Maryland LLC Application for Reservation Of Limited Liability Company Name
- Maryland LLC Articles of Cancellation
- Maryland Corporation Articles of Dissolution
- Maryland LLC Articles or Certificate of Reinstatement
- Maryland Corporation Articles of Revival
The operating agreement outlines your LLC's internal rules and regulations. Some events, such as change in ownership, may require you to update your operating agreement. BetterLegal may also assist you with this.
Licenses and Permits
Licenses and Permits requirement may vary in each state and depending on the nature of your business. These licenses and permits ensure that companies within specific industries are abiding by its rules and regulations. If you need assistance in obtaining the licenses and permits required for your LLC, you may check out BetterLegal's Permit and License Search service.
DBAs and Fictitious Names
A DBA (Doing Business As) or a Fictitious Name is an alternative name or nickname under which a business can operate. This allows a business to conduct business under a name other than its legal name. For example, an LLC named "ABC Tile LLC" might file for a DBA and conduct business under the name "Maryland Tile".
A DBA or Fictitious name is not a separate legal entity, it is a name that the business can use for its transactions and it does not change the legal structure or the ownership of the business.
If you need help in registering a DBA for your LLC, reach out to us via chat or call to confirm if we can assist with your filing.
The type of taxes that each state requires vary. Meanwhile, all LLCs are subject to Federal Taxes due to the IRS and are reported through the LLC’s EIN. For the filing of your taxes, it is best to consult your accountant.