Q: Do I have to pay Maryland annual back fees for an entity that has never conducted any business?
I registered a business in 2014 in Maryland through a registered agent but soon changed my mind before any business was conducted.
I never paid annual fees and Maryland has finally forfeited the entity. Now Maryland fees are piling up annually and Maryland tells
me that in order to dissolve the entity I must first pay them back fees. Additionally, the registered agent continues to withdraw an
annual membership fee from my credit card because they tell me I can't cancel because Maryland requires me to have a registered agent.
How do I get out from this scam because as I mentioned, I've NEVER conducted any business with this entity? It just exists on paper.
A: I sympathize with you.
When you set up a business you do need to follow the state law requirements and pay all your dues. You should have dissolved the business if you weren’t making any money at all for the first year. That doesn’t mean not making a profit. It means literally not making any money.
At this point you may want to speak to Maryland to see if you can negotiate with them to pay less if you don’t have the funds to pay the back fees. Otherwise, just pay them.
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