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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 14007
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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So I am moving an LLC (personally owned, one owner) from Maryland

Resolved Question:

So I am moving an LLC (personally owned, one owner) from Maryland to Massachusetts. I have had the business open online and have had less than $500 in sales for the life of the business. The business was opened in Oct, 2012.

I have applied for a new LLC in Massachusetts and recieved a sales and use tax license, but am not sure how to merge the two LLCs so I can keep my federal EIN for the business.

Is there any special paperwork I need to file in Massachusetts, or do I simply dissolve the LLC in Maryland?
Submitted: 1 year ago.
Category: Tax
Expert:  Megan C replied 1 year ago.

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

How are you today?

MyVirtualCPA :

You wouldn't need to set up a new LLC in order to move the LLC from Maryland to Massachusetts.

MyVirtualCPA :

You would take your existing LLC and simply register it as a foreign LLC doing business in MA

MyVirtualCPA :

Then, you would be able to use the same EIN number and everything.

Customer:

Good morning! Sorry I had been on another page and didn't realize you had answered so quickly!

MyVirtualCPA :

No, that's fine. I am patient.

Customer:

Well, wouldn't I need to file taxes in Maryland if I did that?

Customer:

Thanks ha ha!

Customer:

I am very new to all this. I've done accounting, but never started my own business.

Customer:

Legal is not my strong suit

MyVirtualCPA :

That's okay I'm here to help.

Customer:

So I guess my question for the foreign LLC is this, would taxes need to be filed in Maryland and Mass?

Customer:

or would that all shift to Mass?

MyVirtualCPA :

Yes, you would still owe tax to Maryland = see this article http://www.nolo.com/legal-encyclopedia/maryland-state-business-income-tax.html

MyVirtualCPA :

Unfortunately, if you set up a new LLC, then you would have to apply for a new EIN

Customer:

I was researching opening an LLC in Mass and then merging the two. That way I could avoid paying tax in Maryland and still keep my EIN. The issue, is that I cannot find the forms to submit in Mass

Customer:

The old LLC would simply disolve

Customer:

Would that work legaly in Mass? Not sure if maybe it isn't an option in this State. Cannot find the forms.

MyVirtualCPA :

You would file articles of consolidation/merger with the state. Comes with a $250 filing fee. It would be cheaper to just dissolve your entity and get a new EIN

MyVirtualCPA :

http://www.sec.state.ma.us/cor/corfees.htm

Customer:

If I have already filed, but filed the wrong thing with Mass, is it possible to change it at this point? No LLC has been approved.

MyVirtualCPA :

What did you already file?

Customer:

I already filed for an LLC in Mass ($500 fee)

Customer:

Thank you for all your help by the way. I had been trying to wade through government sites.

MyVirtualCPA :

That's fine

MyVirtualCPA :

You have the Maryland LLC set up. I don't see the need to merge the two

MyVirtualCPA :

I would just apply for a new EIN it's free

MyVirtualCPA :

You would have to pay an additional $250

Customer:

Yes, I think you are right. Much easier and cheaper that way

Customer:

Okay great! Well then my answer is very well answered. Thank you so much!

MyVirtualCPA :

If you are a single member LLC you will file your tax the same way, you would just have one schedule C for the Maryland llc and a second for the MA LLC this year

MyVirtualCPA :

You're welcome

MyVirtualCPA :

If you would, please rate my response "excellent" so that I may receive credit for assisting you today

MyVirtualCPA :

Thanks again for your question today. And let me know if you need anything else - come back and visit MyVirtualCPA

Customer:

I will. thank you again

Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 14007
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 6 other Tax Specialists are ready to help you

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