Business Status Forfeited In Middlesex
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Forfeiture is the process that allows the Department to remove inactive entities that have not legally terminated their authority to do business in Maryland or to notify active entities of an existing oversight in meeting legal filing requirements.
Forfeiture is the process that allows the Department to remove inactive entities that have not legally terminated their authority to do business in Maryland or to notify active entities of an existing oversight in meeting legal filing requirements.
In order to maintain Good Standing status, it is important that you file required annual reports and maintain compliance with any applicable Maryland laws. Failing to do so means your entity may be “Not in Good Standing,” which eventually leads to forfeiture.
So, you've got a forfeited LLC. Under Maryland law, your entity does not legally exist. That is, until you get sued. Many LLC members do not realize that they can be forced to defend a lawsuit against the LLC even after forfeiture.
Forfeit or forfeiture means losing a right, privilege, or property without compensation as a consequence of violating the law, breaching a legal obligation , failing to perform a contractual obligation or condition , or neglecting a legal duty .
“Forfeited” means the right of the entity to conduct business in the State of Maryland has been relinquished and it has no right to use its name. For domestic corporations, this also means that the business has no existence under the laws of the State of Maryland.
Forfeiture of shares refers to the cancellation of allotment of shares to the shareholders by the company due to non payment of installments. On the other hand, surrender of shares refers to the voluntary act of surrender of shares by the shareholder for cancelling the allotment of shares.
