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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 117370
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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My business charter has been forefietted due to unpaid taxes

Customer Question

My business charter for Maryland has been forefietted due to unpaid taxes and I was wondering what my options were for coutinuing to business in Maryland. I don't want to lose my government contracts that I worked so hard for. Can I start another charter.
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
First, not to state the obvious, you can pay the back taxes to reinstate the charter and pay the reinstatement fees (http://www.dat.state.md.us/sdatweb/entitystatus.pdf). Second, you would have to open a new company completely to start over from scratch and you would need to use a new owner on the corporate documents, because if they see the same owner they will likely deny your charter.
Customer: replied 1 year ago.
The problem is one of my government vendors wants my good standing certificate by Friday and I have already paid half of my taxes but I won't have all by Friday my question was what other options do have I have to pay the taxes
Customer: replied 1 year ago.
Th3esw problem is one of my government vendors wants my good standing certificate by Friday and I have already paid half of my taxes but I won't have all by Friday my question was what other options do have I have to pay the taxes
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
If your contractor requires your current company stay in tact and not form a new company, then you really have no other options other than paying the taxes. Dealing with revenue department is not like they give you many options. You can ask for them to reinstate you since you have paid half of the taxes due and ask for a waiver, but they will not decide that in one day I am afraid and unless there is a dispute over the amount due, most times they will not agree to reinstate until payment is received in full.
Customer: replied 1 year ago.
I guess I was wondering because some of competitors got new charters under new names like Dave's Towing llc to Dave's Towing Inc I've seen nightclubs do it
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
That would not solve the issue of you keeping the same company. You would have to form another corporate entity with a new owner with you, you can be one of the owners in the new company, but would need another owner. If you want to get a partner to open a new business with you then you have to transfer contracts to the new company with the new partner.
Expert:  Law Educator, Esq. replied 1 year ago.
That is how the nightclubs do it, they usually get a family member or spouse to open the new business.