You just found out that your Maryland Limited Liability Company (LLC) is not in good standing.  What do you do now?

“Not in Good Standing”

“Not in good standing” means the business entity is not in compliance with one or more Maryland laws that apply to businesses and their responsibilities in the State of Maryland.

The most common reasons that a business is not in good standing are
– Failed to file a Business Personal Property Return (PPR), also called a Form 1
– A monetary penalty resulting from the late filing of a PPR
– An issue with the Maryland Office of the Comptroller
– An issue with the Maryland Department of Labor, Licensing and Regulation
– A check or other form of payment that was dishonored
– Not having an active resident agent

The status can be returned to Good Standing by correcting the reason in which the business is out of compliance.

Failure to bring a “Not in Good Standing” company to “Good Standing” can result in forfeiture and the loss of the ability of your company to perform work or otherwise operate in the state of Maryland.



“Forfeited” means the right of the entity to conduct business in the State of Maryland has been relinquished. For domestic entities, this also means that the business has no existence under the laws of the State of Maryland.  The business cannot bring a lawsuit to collect on a contract or bring any other legal proceeding for its benefit.

In most circumstances, a business is forfeited only after it has been “not in good standing,” so the most common reasons for forfeiture are the same as the reasons businesses fall out of good standing.

Even a “Forfeited” entity can be revived and brought back to Good Standing.  Please contact William Day Law Group for help in making sure your Maryland entity is current with filings and stays in good standing.