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Entity Compliance: Why It Is Important to the Health of Your Business

On Behalf of | Nov 15, 2013 | Business Law

For our clients who are entities, i.e., corporations and limited liability companies, as we approach the end of the year, it may be time for year-end cleanup.

Being out of compliance with state business entity requirements can cause problems with your entity’s good standing with the State of Maryland and with the State Department of Assessments and Taxation (SDAT). If your company is not in good standing, it may not have the authority to enter into binding contracts, and such agreements may become voidable. In addition, your company may not be able to file a claim against another, or defend a claim against it.

When Was the Last Time You Checked Your Status?

If your business underwent any changes this year, we recommend that you make sure the changes are properly reflected in the public record.

  • If you merged or acquired businesses, are the entities in good standing in Maryland and in all other states where they’re registered to do business?
  • If you bought or sold assets or stock, were the property transfer reports filed with the Personal Property Division of SDAT, and was the Bulk Transfer Return filed with the Maryland Comptroller?
  • Are annual reports (personal property returns) up to date for all your entities?
  • If you closed a business, have you filed the appropriate articles of dissolution or cancellation forms with SDAT?
  • Are all your business licenses current at each location where you conduct business?
  • If your entities changed names or are operating under a trade name, did you complete all necessary filings with SDAT and notify your resident agent of the changes?
  • Are your principal office, resident agent and resident agent’s addresses current and accurate as reported with SDAT?

Make Sure You Are Prepared for an Audit

We can audit your entities, alert you to missed filings, and take care of any lapses for you. We can also make sure your filings are done correctly for any new business actions or transactions you need to complete by December 31st.

Close out the year with peace of mind. Contact us and let one of our attorneys or legal assistants help you make sure you are current on all state and local filings to close out your business this year and remain in good standing for the New Year ahead.

To learn more, contact the attorneys at Snee, Lutche, Helmlinger & Spielberger by clicking here: http://www.slhslaw.com/contact/

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