Last Updated on 1 month by Komolafe Bamidele
Do you want to know how to form a Maryland LLC? If so, you’re probably preparing to start a fascinating new company. Maryland is an excellent location for businesses of all sizes to operate because of the state’s thriving economy and array of tax breaks.
All the necessary actions to guarantee that your Maryland LLC will be adequately created are provided on this page.
To ensure you don’t miss anything, we advise you to thoroughly read the entire piece, word by word.
7 Steps to Form an LLC in Maryland – Maryland LLC Guide
Step 1. Choose your LLC business name.
Picking a name is the first thing that needs to be done to start a Maryland LLC.
The type of business you have should be clear from your business name by including the letters LLC, L.L.C., or Limited Liability Company.
The words Inc., Corporation, Corp, or Incorporated cannot be in your name.
Another thing that shouldn’t be in it, are words that make it sound like your business provides a service or product, it shouldn’t look like “bank” if your LLC isn’t a bank.
Use Maryland’s business company search tool to see if the name you want is already taken.
It will tell you if a name is already being used in Maryland after you type it in.
Then, check the database of the U.S. Patent and Trademark Office to make sure the name is not legally protected against infringement.
For extra peace of mind, search for your chosen name on Google and Bing to ensure it’s not already taken.
Step 2: Name a Maryland Resident Agent
A resident agent is required for any LLC that conducts business in Maryland.
The terms “registered agent” and “agent for service of process” are also frequently used to describe this role.
A Maryland LLC, a Maryland registered agent service, or a person of Maryland who is above the age of 18 can all serve as resident agents.
They are not permitted to designate a P.O. box as their location of contact; instead, they must have a genuine street address in Maryland.
The papers of formation for your LLC will identify this agent, who will handle official government documents and documentation related to any legal actions the LLC takes on its behalf.
Although your LLC is not permitted to act as its own resident agent, any member or staff member of the LLC may do so.
Step 3. File Articles of Organization in Maryland
The Articles of Organization filing is the third and most crucial stage in creating a Maryland LLC.
To register your business with the Maryland Secretary of State, you must submit this legal document, the Maryland Articles of Organization.
The filing fee for a formation certificate in Maryland is $100.
The name of the LLC, the address and name of the registered agent, the personnel list, and the nature of the business (manager- or member-managed) are all included in the Articles of Organization.
Prior to employing personnel in Maryland LLC, it is important to fully understand the rules and regulations.
You also need to file as a Maryland Foreign LLC if you are growing your current company, which is an LLC, into Maryland from another state.
Use internet resources such as Zenbusiness to streamline this procedure.
Step 4: Create an Operating Agreement.
You don’t have to make an operating agreement as part of the steps to start an LLC in Maryland, but you should take your time with this part of the process.
Your business plan paints a picture of your goals coming true.
You gave the state a lot of information about how to contact you in your articles of organization.
Now is the time to make sure that everyone in your Maryland LLC knows what their official rights, tasks, and obligations are.
A working agreement is a deal that was made to help you, not the government.
You might be able to avoid the kinds of mistakes and fights that end up in court between LLC members if you write this paper now.
Step 5: Acquire Any Required Licenses and Permits
A business license or permission may be needed to run your LLC, depending on the type of business you’re in.
Check out the types of business licenses page for the state of Maryland to see if your business needs one.
Look through the list of business types.
If you find one that applies to your business, click on it to find out who can apply, how to apply, and if there are any fees.
Like, if your business is building things, click “Construction license.”
In the drop-down menu, you can see who should apply for this license and how much it costs.
It also has links to pages with more details about the licenses you need and how to apply for them.
Step 6: Get an Employer Identification Number (EIN).
An EIN, often referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN), is necessary for the majority of businesses.
On the other hand, in the event that your company is a single-member LLC and you do not hire anybody, you may substitute your Social Security number.
An EIN helps safeguard the privacy of your Social Security number even if it is not necessary.
One is available for free on the IRS’s official website.
Step 7; File an Annual Report.
It is mandatory in Maryland to submit an annual report to the Department of Assessments.
A personal property tax return must also be filed with your annual report if you are a Maryland trader license holder, or if you own, lease, or utilize personal property in Maryland.
The deadline for these forms is April 15 each year.
The Maryland Business Express website allows you to file your personal property tax return (if required) together with your yearly report.
To begin, scroll down and select the “File” tile.
In addition to transaction costs of $3 or 3%, depending on your payment method, the yearly report filing price is $300.
There is no yearly charge for filing personal property tax returns.
It is noteworthy that Zenbusiness provides a complementary file an Annual Report service for the first year.
To Wrap Up
Setting up a Maryland LLC is easier than setting up other types of businesses.
Maryland makes it easy and cheap for small businesses, especially new ones, to form an LLC.
LLCs don’t have to pay some taxes because of something called “pass-through taxation.”
It takes a lot less paperwork and formal steps to set up a limited liability company.