In a recent case, the Court of Appeals of Maryland dismissed the appeal of a Maryland limited liability company (“Company”) in a breach of contract action because the Company failed to file a personal property tax return.
After September 30, of each year, the Comptroller of Maryland issues a proclamation with a list of every company that fails to file its personal property tax return. Once put on notice, there is a sixty (60) day window to file the return. If the return is not filed within that time, the company forfeits its right to do business, which also includes the right to pursue litigation.
While restoration of the right to do business can occur with a filing of the return, the Company could not reinstitute its appeal. In this case, filing the return could not prevent the dismissal of the case and upon dismissal, the time limits for the appeal were exhausted.
There are also penalties and possible assessments which can affect the principals. We urge our clients to make sure that the annual filings are made. We partner with our clients and offer counsel in Corporate and Business Law and law for Business Startups. Contact A. Howard Metro by email today.