Whether we’re talking weather, vacations, or bags of potato chips, all good things must come to an end, and that includes resident agent duties. There are numerous reasons you might need to give up your Maryland resident agent role, but only one way to resign.
Resident agents play an important role in the life of an LLC, handling sensitive legal and tax documents, so it’s essential that agents follow proper resignation procedures. Otherwise, you could leave your company with unplanned fines or penalties, and you could be individually liable.
What’s nice is that resigning from a Maryland LLC is a pretty easy process.
Follow these steps and the hardest part of your resignation won’t be the process itself, it’ll be saying “so long” to your former business.
Time Saving Hack: You can resign as resident agent, get all state paperwork taken care of and have a replacement agent when you hire an online registered agent service.
Notifying the Maryland LLC
There’s no legal requirement to give your LLC advance notice before submitting your resignation. You’re only required to send them a copy of your official resignation statement after sending it to the state. Regardless, it can be helpful for both you and them if you reach out to the company before resigning. This gives them time to plan their resident agent change so that they can avoid potential fines and penalties.
On your end, giving notice beforehand can help your resignation move quicker. You will remain on file as the LLC’s resident agent for ten days unless they appoint a replacement sooner. Helping the company create a succession plan can get you off the record right away.
Submitting Your Resignation
Before you move on to your next business or project, you need to file a formal resignation with the Maryland Department of Assessments and Taxation. There is no standard form, so you’ll need to create your own. But don’t worry, there isn’t too much involved. Here’s the information you need to include:
- The LLC name
- State where the LLC was formed
- Principal office address
- Your name and address
- A statement of resignation
- Your signature
That wasn’t so bad. And what’s even better is that there’s no filing fee, so put your checkbook away – you won’t need it. If you’re happy with your document, you can mail or hand-deliver it to:
State Department of Assessments and Taxation
301 W. Preston St, Room 801
Baltimore, MD 21201-2395
If your LLC already has a replacement lined up, your resignation will effective immediately. But if they do not, you will retain your agent duties for ten days after your statement is processed. Standard processing time is 4-6 weeks, but you can request expedited processing (seven business days) for a $50 fee.
Handing off Your Responsibilities
When you put down your resident agent responsibilities, someone else has to pick them up, or your LLC will lose its good standing with the state. Help your LLC keep its momentum by carefully planning your transition.
This starts with finding a successor who’s ready to take over right away. Even a small gap in resident agent coverage can result in severe penalties. Any Maryland business entity that goes 30 days or more without a valid resident agent can be administratively dissolved by the state. Because the penalty is so severe, it’s a good idea to give your LLC plenty of time to find a new resident agent.
Anyone that the company appoints as your replacement must meet Maryland’s resident agent requirements. They must:
- Be an individual or business entity that resides in Maryland
- Have a physical Maryland address (P.O. boxes aren’t allowed)
- Have a mailing address in Maryland
- Be authorized to conduct business in the state, if a foreign entity
- Be available at the registered address during regular business hours
An owner or manager can serve as resident agent for their own LLC, but sometimes hiring a professional can save time and prevent stress.
We recommend using a resident agent service, which can take over resident agent duties, freeing up more time for the LLC’s managers to focus on running the business.
You do a lot for your Maryland LLC. You’re essentially the shield that protects it from fines, the filter that catches important documents, the conductor that keeps it on track with compliance.
Because you play such an important role, it’s crucial that you follow the resignation procedures exactly — and potentially provide a replacement agent for the business. Otherwise, you might find yourself and your LLC in hot water.
Follow this guide and you’ll be totally fine. Soon, you’ll be on to your next project, whether that’s starting a new business in Maryland or something completely different.