Washington, DC asked in Business Law for Maryland

Q: Change domestic Maryland LLC to out of state LLC

Related Topics:
1 Lawyer Answer
Mark Oakley
Mark Oakley
  • Rockville, MD
  • Licensed in Maryland

A: Depends on the law of the state where you want to move the LLC to, and what you are actually looking to achieve. There are four options: (1) keep the MD registration and simply register to do business in the other state as a foreign registered LLC; (2) dissolve the MD LLC and create a new LLC in the other state; (3) create a new LLC in the other state, then merge the MD LLC into the new LLC; (4) domesticate the MD LLC in the other state through conversion.

Not all states permit domestication of out-of-state LLCs, and there may be state law restrictions or other consequences to mergers, and there may be tax consequences to each of the different options as well as differing legal fees and filing fees for each option since the documentation needed to accomplish each is very different.

It is best to discuss what you want to accomplish and why you want to do this with a lawyer. You should also consult with a tax accountant familiar with small businesses about the tax consequences of each option.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.