Maryland Plan of Liquidation and Dissolution of a Corporation

State:
Multi-State
Control #:
US-0076BG
Format:
Word; 
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Description

Dissolution is the act of bringing to an end. It is the act of rendering a legal proceeding null, or changing its character. Under corporate law, it is the last stage of liquidation. Dissolution is the process by which a company is brought to an end.



Liquidation is the selling of the assets of a business, paying bills and dividing the remainder among shareholders, partners or other investors. A business need not be insolvent to liquidate. Upon liquidation of certain business, such as a bank, a bond may be required to be posted to assure the proper distribution of assets to creditors.

How to fill out Plan Of Liquidation And Dissolution Of A Corporation?

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FAQ

A plan of dissolution is a written description of how an entity intends to dissolve, or officially and formally close the business. A plan of dissolution will include a description of how any remaining assets and liabilities will be distributed.

Corporations in Maryland must file personal property reports with the proper authorities before approval of dissolution can be given. If your business has been forfeited, you must file for reinstatement and submit the personal property reports before your company can be dissolved by Maryland's SDAT.

To file by mail: Mail your filing, check or money order to: State Department of Assessments and Taxation Charter Division 301 W. Preston Street, Room 801 Baltimore, Maryland 21201-2395 Checks or money orders should be made payable to the State Department of Assessments and Taxation or SDAT.

You can file articles of dissolution with the Maryland SDAT by mail or in person. If you mail your documents you need to include a check for the filing fee. If you drop off your documents in person, you can pay by check, cash or money order.

Forming an LLC in Maryland costs $100, but there are additional fees to consider. All Maryland LLCs must file an annual report and pay a $300 annual fee. If your LLC owns, leases or uses personal property in Maryland, you must also file a personal property tax return.

It doesn't cost anything to file articles of dissolution or cancellation unless you want expedited service, and then it's $50 for each document. Wrapping up an LLC's affairs will cost time and money due to registered mailing and administrative expenses.

What are the differences between liquidation and dissolution? Dissolving a company through the process of dissolution often takes place when a company is solvent, but is no longer trading. Liquidation however, occurs due to a company having financial difficulties and therefore being unable to keep up with their debts.

There is no filing fee to cancel your Maryland LLC, but expedited processing costs $50. Your registered agent service in Maryland may be able to help with the dissolution process.

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Maryland Plan of Liquidation and Dissolution of a Corporation