At some point, you might find yourself wanting to close down your limited liability company in Maryland. This process is referred to as dissolving your LLC. In order to dissolve an LLC in the state of Maryland, there are a variety of things that you need to do to complete the voluntary dissolution process.
Check Your Formation Documents
When an LLC is formed, you will create formation documents that include an operating agreement and articles of organization. Depending on what you included in each one, one of them should contain defined rules that will dictate how to dissolve an LLC. In some common articles of organization, the rules include things like:
- Having a certain percentage of members vote for dissolution
- Setting a specific time to meet and vote on dissolution
- Specific processes for providing notice to LLC members of a vote
Maryland also has an LLC Act that can supersede the rules of your LLC and provide other rules to dissolve an LLC via unanimous consent. When you obtain unanimous consent, you can dissolve the LLC without the traditional vote or processes detailed in the operating agreement.
File Articles of Dissolution
Depending on how you want to dissolve an LLC, you can also file your articles of dissolution with the Maryland Department of Assessments and Taxation. This document will need to contain:
- The date of dissolution
- The date that the articles of organization and amendments were filed
- The name of the LLC
- Other relevant information
This is optional, but we can assist you in creating your filing.
Why Would You Want to Dissolve an LLC?
There are many different reasons why business owners choose to dissolve an LLC, including:
- You are no longer making a profit, or you feel that a new business would help you better meet your profitability goals and do not want to continue paying fees and taxes on your unprofitable business
- You have completed the purpose of the LLC if it was designed for a specific project, like constructing a property or holding an event
- One of the members of the LLC died
- Members cannot agree on the path forward for the LLC so dissolution is preferable
We can help you find the best path forward for your organization.
Learn More About How to Dissolve an LLC in Maryland from The Law Office of Elizabeth Anu Lawrence
If you are interested in dissolving your LLC for any reason, choose an experienced firm like the Law Office of Elizabeth Anu Lawrence to give you the help you need. Please give us a call at 443.352.3201. Skype and telephone consultation are both available to clients.