Entity Conversion - switch LLCs, corporate entities

Maryland recently enacted legislation in 2013 that allows for entity conversion.  What's that?  Simply put, it lets a business switch forms.  Lets say you started out as a corporation but find the tiers of shareholders, directors and officers too cumbersome for your small business.   Should you shut down the corporate entity and create a new LLC?   Well, you could, but that creates its own problems and need to transfer every asset, deal with the possibility of a taxable event and so forth.

Or what if you formed your entity outside of Maryland but realized that this means keeping up two sets of filings each year in your state of formation and in-state (with two sets of associated filing fees!)   Or what if you want to "merge" into a new business type but own real property for which Maryland would impose transfer and recordation tax?   

Enter the Conversion Statute.   You may be able to convert your foreign out-of-state business form to a local, domesticated Maryland entity.   Contact the firm for more informatio on how the statute could benefit your business. 

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