Reinstate a Business in Maryland | A Step-by-Step Guide

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Reinstate Maryland Business

Running a business or forming an LLC in Maryland can be a rewarding yet challenging experience. When operating a business, unforeseen circumstances may arise, leading to the suspension or dissolution of the entity. If your business has been suspended or dissolved in Maryland, you do not need to worry. This guide will provide a step-by-step process to Reinstate your Business in Maryland and get back on track.

Webinarcare Editorial Team will help you easily reinstate your Maryland business. You must be guided by all the factors gathered in this article.

How to Reinstate a Business in Maryland

Understanding Dissolution and Suspension

Before diving into the reinstatement process, it’s essential to understand the difference between dissolution and suspension.

Dissolution

Dissolution is the legal termination of a business entity. This can happen voluntarily by the owners or involuntarily by Maryland due to non-compliance with state laws and regulations. When a business is dissolved, it must cease all operations and settle outstanding debts and liabilities.

Suspension

The state can suspend a business entity for various reasons, such as failing to file Annual Reports or paying taxes. When a business is suspended, it loses its right to conduct business within Maryland, and the owners may be personally liable for any debts or liabilities incurred during the suspension period. Hiring a Resident Agent for your documents to be compliant is very important. You could check out the Best Maryland Resident Agent Services in Maryland.

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How to Reinstate a Business in Maryland

In Maryland, reinstating your business needs a lot of preparation, more specifically if it is located in Annapolis. To be aware and prepared, we have gathered information on the steps to reinstate your Maryland business. If it is manageable to Dissolve a Business in Maryland, it is also bearable to reinstate your Maryland business. Keep in mind that you should follow the mentioned steps below. 

Step 1: Determine the Reason for Suspension or Dissolution

The first step in reinstating your Maryland business is determining why it is suspended or dissolved. This information can be found in the notice issued by Maryland or by contacting the Maryland Secretary of State. Common reasons for suspension or dissolution include:

  • Failure to file Annual Reports
  • Failure to pay taxes or fees
  • Failure to maintain a Resident Agent
  • Non-compliance with state laws and regulations

Step 2: Resolve Outstanding Issues

Once you have identified the reason for your business’s suspension or dissolution, you must resolve the outstanding issues. This may include:

  • Filing any missing Maryland Annual Reports and paying associated fees. In Maryland, the LLC Annual Reports costs $300 while the Corporation Annual Report costs $300+.
  • Paying any outstanding taxes or fees
  • Appointing or updating your Resident Agent information. 
  • Resolving any non-compliance issues with state laws and regulations

Ensure that you keep records of all payments and documents submitted to the Maryland Secretary of State, as you may need to provide proof of compliance during the reinstatement process. We recommend hiring the Best Resident Agent Services if you plan to reinstate your business. This will ensure that your documents are up to date.

It is suggested that you speak with a legal professional before you begin reinstating your Maryland business. They’ll understand what’s best for you and your company. To safeguard your personal assets from business debts, you can always start an LLC in Maryland.

– WEBINARCARE EDITORIAL TEAM

Step 3: Obtain a Certificate of Status

Certificate of Status is a document issued by Maryland that verifies that your business is in compliance with all state requirements and is authorized to conduct business within the state. Although obtaining a Certificate of Status is not always required for reinstatement, it can be beneficial in demonstrating your business’s compliance and may expedite the reinstatement process.

To obtain a Certificate of Status in Maryland, you will need to:

Get and Submit the Form

The form is available on the Maryland Secretary of State website. You can download the form and mail it or submit it online. 

Online Application Process:
  • Visit the State Website: In Maryland, they offer an online portal for business services, which includes the option to request a Certificate of Status.
  • Register an Account: You may need to create an account or log in to your existing account to access the application process.
  • Provide Required Information and Documentation: The online application typically requires basic information about your business, such as the entity name, identification number, and business type. You may also need to upload supporting documents. 
Paper Application Process:
  • Download and Complete the Appropriate Forms: Visit the Maryland Secretary of State to download the required application forms for the Certificate of Status. Complete the forms, ensuring all information is accurate and up-to-date.
  • Provide Required Documentation: In Maryland, you may need to include copies of your registration documents, Articles of Organization, Annual Reports, or other supporting materials.
  • Mail or Deliver the Application: Once you have completed the forms and gathered the necessary documents, mail or deliver the application package to the CoState Department of Assessments and Taxation, Charter Division 301 W. Preston Street; 8th Floor, Baltimore, MD 21201-2395, along with the required fees.
Pay Any Associated Fees

The fees for obtaining a Certificate of Status cost $40, vary depending on the type of business entity. Some states also offer expedited processing for an additional fee. Check the Maryland Secretary of State website for the most up-to-date fee schedule. The Certificate of Status’s processing time varies from state to state. Also, it depends on the expedited filing as well. It can take a few days to a few months to obtain the Certificate of Status in Maryland.

Provide Proof of Compliance

To prove compliance with state requirements, you must file Annual Reports and pay the necessary taxes.

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Step 4: Submit Reinstatement Application

Once you have resolved all outstanding issues and obtained a Certificate of Status, you can submit your reinstatement application to the Maryland’s Secretary of State. The reinstatement application process may vary depending on the state and the type of business entity (corporation, LLC, etc.).

In general, the reinstatement application process will require:

  • Completing a reinstatement application form is typically found on the Maryland Secretary of State’s website.
  • Providing proof of compliance with state requirements, such as filing Annual Reports, paying taxes, and maintaining a Resident Agent.
  • Pay the reinstatement fee in Maryland. The cost of the reinstatement fee amounts to $100. However, the cost will vary depending on the length of time your Maryland business has been suspended or dissolved.

Step 5: Wait for Approval

After submitting your reinstatement application and all required documentation, you must await approval from the Maryland’s Secretary of State. The processing time for reinstatement applications can vary depending on the Maryland and the complexity of your case. Being patient and prepared to provide any additional information or documentation requested by Maryland during this time is essential.

Step 6: Notify Creditors and Stakeholders

Once your business has been reinstated, you must notify creditors and stakeholders of your business’s renewed status. This may include:

  • Sending a formal letter to creditors and stakeholders informing them of the reinstatement.
  • Updating your Maryland business’s website and social media accounts to reflect the reinstated status.
  • Informing any relevant licensing or regulatory agencies of the reinstatement.

Step 7: Resume Business Operations

After your Maryland business has been reinstated and all relevant parties have been notified, you can resume your business operations. Be sure to maintain compliance with state laws and regulations moving forward to avoid future suspensions or dissolutions.

Reinstating or Creating a New Business?

Whether to reinstate a business or start a new one from scratch depends on several factors specific to your situation. Here are some points to consider when making your decision:

  • Costs: The costs of reinstating and starting a new business can vary significantly. Reinstating a business may involve paying outstanding taxes, fees, and penalties while starting a new business requires registration fees and potential legal costs. Compare both options’ costs to determine which is more financially viable.
  • Business History and Reputation: If your previous business has a strong reputation and established customer base, reinstating it may be more beneficial than starting from scratch. On the other hand, if your Maryland business has a negative history or unresolved legal issues, start fresh with a new business.
  • Time and Effort: Reinstating a business can be a time-consuming process, as you need to resolve outstanding issues, submit a reinstatement application, and wait for approval. Starting a new Maryland business may be faster, as you can register the business and begin operations relatively quickly. Consider which option is more time-efficient based on your situation.
  • Legal and Regulatory Compliance: If your previous Maryland business was suspended or dissolved due to non-compliance with state laws and regulations, you should carefully evaluate whether you can maintain compliance if the business is reinstated. If you are confident in your ability to comply with requirements, reinstating the business might be a good option. However, starting a new Maryland business might be a better choice if you still determine your ability to maintain compliance.

Ultimately, deciding to reinstate a business or start a new one from scratch depends on your circumstances and goals. Consider the abovementioned factors, consult with professionals such as Maryland Business Attorneys and accountants, and evaluate which option best suits your needs and long-term business objectives.

FAQs

How do I reinstate my Maryland business?
You must file annual reports and pay all associated fees to reinstate your business in Maryland.
What happens if I fail to file annual reports for my Maryland business?
Your business will be dissolved by default if you fail to file annual reports for three years.
How much will it cost to reinstate my Maryland business?
Cost to reinstate your Maryland business will depend on various factors. You should check on the status of your business before determining any costs.
Do I need a registered agent to reinstate my Maryland business?
Yes, every Maryland business, including those reinstating, is required to have a registered agent.
How long does it take to reinstate a Maryland business?
Business reinstatement in Maryland typically takes several weeks to several months, depending on the complexity of your business structure.
Can I reinstate my Maryland business myself?
Yes, you can reinstate your Maryland business yourself or hire a professional service to do it for you.
Can I expedite the process of reinstating my Maryland business?
Yes, you can pay an extra fee to expedite the process of reinstating your Maryland business.
How do I check the status of my Maryland business?
You can check the status of your Maryland business by searching the business database on the Department of Assessments and Taxation (SDAT) website.
Why was my Maryland business dissolved?
Maryland businesses can be dissolved for not filing annual reports, failure to pay taxes and other fees, or any other reason determined by state law.
Will I have to pay any fees in addition to the reinstatement fee?
Yes, in addition to the reinstatement fee, there may be fees for late filing penalties and interest on unpaid taxes.
Can I get a copy of my filed annual reports if I lost my paperwork?
Yes, you can contact the Maryland Department of Assessments and Taxation (SDAT) to request a copy of your annual reports.
Can I reinstate my Maryland business if I owe the state taxes?
You can likely still reinstate your Maryland business, but you may have to pay penalties and interest on the delinquent taxes.
What happens after I submit my reinstatement application?
After submitting your reinstatement application, you’ll have to wait to hear back on whether it has been successful.
What should I do once my business is reinstated?
Once reinstated, you should file any overdue taxes, renew any expired licenses or permits, and ensure compliance with all state rules and regulations.
Can I reinstate a Maryland business if it was dissolved voluntarily?
Yes, you can reinstate a Maryland business that was dissolved voluntarily, but there may be additional requirements, such as a resolution from your Board of Directors.
Will I need to register my business with the State of Maryland again after reinstatement?
If your business structure hasn’t changed, then you won’t need to re-register your business after reinstatement. However, if there have been any changes to the business structure, you will have to file new paperwork.
How do I change my business name when reinstating in Maryland?
You can file paperwork to change your business name once you have reinstated your Maryland business.
Can I still get business insurance if my Maryland business was dissolved or inactive?
Yes, you can still get business insurance if your Maryland business was dissolved or inactive by working directly with insurance providers and discussing your situation.
Can I abandon my Maryland business instead of reinstating it?
If you would rather abandon your business than reinstate it, you need to file Articles of Dissolution with the State of Maryland.
What if I notice errors on my Maryland business reinstatement form after it’s already been submitted?
You need to contact the State of Maryland’s SDAT as soon as possible, so that the errors can be corrected.
Will I need to obtain a new Maryland EIN number when reinstating my business?
No, you won’t need to obtain a new federal Employer Identification Number (EIN), but you will need to contact the IRS to reactivate it once your business is reinstated.
How can I update my mailing address after reinstating my Maryland business?
You can update your mailing address on the Department of Assessments and Taxation (SDAT) website or by filing a Change of Mailing and/or Principal Office Address form.
Can I still sell products or provide services if my Maryland business is inactive?
Inactive businesses cannot legally conduct business. If you want to sell products or provide services legally in Maryland, you will have to reinstate your business.
Will reinstating my Maryland business affect my personal liability protection?
No, reinstating your Maryland business won’t change your liability protection as long as your businesses operates smoothly.
Is there any limitation on how many times I can reinstate my Maryland business?
There is no limit to how many times you can reinstate your Maryland business. Nevertheless, be mindful of incurring additional late fees.
If my Maryland business is overseen by other government agencies in addition to the Department of Assessments and Taxation, will I need to contact them as well?
Depending on the level of government oversight your Maryland business is under, you may need to contact additional government agencies before you can resume doing business.
Can I automatically expect all of my permits and licenses to be renewed once I have reinstated my Maryland business?
No, you’ll need to check on protection plans on the higher level to ensure compliance before you complete restoration.
What should I do to keep my Maryland business from being dissolved again?
File your annual report and pay all necessary taxes and fees on time. Make note of extension deadlines as well.
What is the fee to reinstate a Maryland business?
The fee to reinstate a Maryland business varies depending on the type of entity and the reason for dissolution. You will need to contact the Maryland Department of Assessments and Taxation for more information.
How can I check the status of my Maryland business?
You can check the status of your Maryland business by searching for it on the Business Entity Search provided by the Maryland Department of Assessments and Taxation.
Is there a penalty for failing to file annual reports for my Maryland business?
Yes, there is a penalty for failing to file annual reports for a Maryland business. The penalty is $300 for each year that the report is past due.
Can I reinstate my Maryland business online?
Yes, you can file for reinstatement of your Maryland business online through the Department’s Maryland Business Express platform.
What is the deadline for filing annual reports for my Maryland business?
The deadline for filing annual reports for a Maryland business depends on the timeframe in which your business was incorporated or registered. You will need to check the Maryland Department of Assessments and Taxation website for due dates.
Can I change the name of my Maryland business when I reinstate it?
Yes, you can change the name of your Maryland business when you reinstate it, but you will need to file a new Articles of Incorporation or Amendment with the Department of Assessments and Taxation.
Can I dissolve my Maryland business and then reinstate it later?
Yes, you can dissolve your Maryland business and then reinstate it later by filing the appropriate paperwork and paying all necessary fees.
Can I reinstate a delinquent Maryland LLC?
Yes, you can reinstate a delinquent Maryland LLC by submitting a reinstatement application and paying all necessary fees.
How long does it usually take to reinstate a Maryland business?
The time it takes to reinstate a Maryland business varies depending on the volume of applications being processed by the Department of Assessments and Taxation. Generally, it takes about 6-8 weeks.
Can I file for reinstatement of my Maryland business by mail?
Yes, you can file for reinstatement of your Maryland business by mail by submitting all the required forms and accompanying fees to the Department of Assessments and Taxation.
Will I need to file new Articles of Incorporation or Amendments when reinstating my Maryland business?
If your Maryland business has been dissolved for less than five years, you don’t need to file new Articles of Incorporation or Amendments. However, if it has been more than five years since dissolution, new Articles of Incorporation or Amendments may need to be filed.
What are the requirements for filing for reinstatement of my Maryland corporation?
The requirements vary depending on the reason for dissolution. You will need to check with the Maryland Department of Assessments and Taxation for more information.
What are the requirements for filing for reinstatement of my Maryland LLC?
The requirements for reinstatement of a Maryland LLC vary depending on the reason for dissolution. You will need to check with the Maryland Department of Assessments and Taxation for more information.
Can I still file for reinstatement if my Maryland business has been forfeited?
Yes, you can still file for reinstatement if your Maryland business has been forfeited, but you will need to contact the Department of Assessments and Taxation for more information about the reinstatement process in your particular case.
How can I obtain the necessary forms to file for reinstatement of my Maryland business?
You can obtain the necessary forms for reinstatement of your Maryland business from the Department of Assessments and Taxation’s website or by contacting their office.
What is the minimum waiting period before I can reinstate my Maryland business?
There is no minimum waiting period before you can reinstate your Maryland business, but you will need to file the proper forms and pay all required fees.
Will I need to pay any back taxes or fines when I file for reinstatement of my Maryland business?
You may need to pay back taxes or fines when you file for reinstatement of your Maryland business if they have been assessed. You will need to check with the Department of Assessments and Taxation for more information.
Can I dissolve my Maryland business online?
Yes, you can dissolve your Maryland business online through the Department of Assessments and Taxation’s Maryland Business Express platform.
Can I file for reinstatement of my Maryland business if it was involuntarily dissolved by the state?
Yes, you can file for reinstatement of your Maryland business if it was involuntarily dissolved by the state, but you will need to contact the Maryland Department of Assessments and Taxation for more information about the specific requirements for your case.
Can I reinstate a Maryland non-profit organization?
Yes, you can reinstate a Maryland non-profit organization by submitting the appropriate paperwork and paying all necessary fees.
Can I file for reinstatement of my Maryland business if it was dissolved by court order?
Yes, you can file for reinstatement of your Maryland business if it was dissolved by court order, but you will need to contact the Maryland Department of Assessments and Taxation for more information about the specific requirements for your case and the appropriate court documents to submit.
Can I reinstate my Maryland business without paying all the outstanding fees?
No, you cannot reinstate your Maryland business without paying all outstanding fees and taxes.
What happens if I don’t file for reinstatement of my Maryland business?
If you don’t file for reinstatement of your Maryland business, it will be irrevocably forfeited and will no longer exist.
Can I get help with reinstating my Maryland business?
Yes, you can contact legal counsel or a business formation service to help you with the process of reinstating your Maryland business.
What is the process for reinstating a Maryland partnership?
The process for reinstating a Maryland partnership is similar to that for other entities – you will need to file for reinstatement by submitting the appropriate forms and paying all applicable fees.

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Conclusion

Reinstating a business in Maryland can be complex and time-consuming. However, following the steps outlined in this guide, you can successfully reinstate your business and resume operations. Remember to stay diligent in maintaining compliance with state laws and regulations to avoid future issues and ensure the continued success of your business.

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