Start a Business in Maryland
Corporate Compliance by Local Corporate Guides®
Starting a business in Maryland can and should be easier than you think. You file simple forms with the State Department of Assessments and Taxation, and your business is formed! Obviously there’s a few more things than that, but if you’d like to start your own business yourself, you will find it easy to hire us as your registered agent and you’ll find all the forms you could file to start a business in Maryland, along with great filing instructions on the quickest and cheapest ways to start your business in Maryland.
How to Start a Business in Maryland
Maryland business registration is started when you file the articles of organization or incorporation with the State Department of Assessments and Taxation. You can now complete your MD corporation or MD LLC filing online!
You obtain a federal tax ID number with the IRS after you have confirmation from Maryland that the entity is completely filed.
You should be able to open a business banking account with these two items.
You contact the Department of Labor, Licensing and Regulation if you’re going to have employees or to get a trade license.
You obtain a local license, if the city or county you’re going to be working in requires it.
If you’re going to have an office or shop, you might need an approval from the city zoning for your type of business in that location.
Are You A Do-It-Yourselfer?
You Can Save Some Money:
If you want to start a business in Maryland yourself, you can just hire us as your Maryland registered agent, and you’ll instantly have the Maryland LLC or corporation forms to file along with filing instructions on the quickest, cheapest, and most efficient way to incorporate a Maryland corporation or form a Maryland LLC. You’ll get the ongoing support of our online tools, reminders and the support of a professional Maryland registered agent service.START YOUR MARYLAND BUSINESS TODAY
Maryland LLC vs Corporation
Small business owners often like the great tax options and flexible management structure of an LLC. They have fewer annual requirements and are easier to maintain. Large business owners like the well-established, defined management structure of a corporation. Plus, having the option to sell stock helps attract strong investors.
But, what about Maryland? Any pros and cons for a Maryland LLC vs a Maryland corporation?
Maryland LLCs have a few advantages over Maryland corporations. The filing fee for the Articles of Organization is $100 whereas the Articles of Incorporation costs a minimum of $120—and if the corporation chooses to authorize over 5,000 shares, the cost will increase. In addition, corporations must list an acting director on their formation documents and director/officer names on their annual report—LLCs don’t need to include manager/member information on either public document. However, both entities are required to pay a $300 minimum filing fee each year for their annual report and personal property tax.
During tax season, Maryland LLCs and corporations have the potential to get hit fairly hard. The rate for corporate income taxes is a flat rate of 8.25% and personal income tops out at 5.75%. Plus, each state county assesses their own personal income tax—ranging from 1.25% to 3.2%. So, high revenue businesses could pay huge amounts in taxes each year. However, Maryland also offers several business tax credits to help even things out.
Maryland has several tax benefits for qualified veterans and the businesses that hire them. The “Hire our Veterans” tax credit allows small businesses to potentially earn an income tax credit based on wages paid to the employee. In addition, the “Military Personnel and Veteran-Owned Small Business Loan Program” provides no-interest loans for companies owned by military reservists, veterans, national guard personnel, or other businesses that employ such persons.
If you want a corporation, you file Maryland Articles of Incorporation:
The Maryland articles of incorporation cost $100 plus a $20 organization fee with the Maryland State Department of Assessments and Taxation.
We custom draft your Maryland articles of incorporation when you hire Northwest to start your Maryland business. The basic requirements of Maryland corporations are:
- The name and address of the incorporator.
- The Maryland Corporation must have a corporate ending such as INC, Incorporated, Corporation or a different variety.
- The Maryland corporation name must be different than already registered Maryland corporations.
- The purpose of the Maryland Corporation.
- The street address of the principal office of the corporation.
- The name and office address of the registered/resident agent in Maryland.
- The value of and number of shares the Maryland Corporation is authorized to issue.
- The number of directors of the Maryland Corporation and their names.
- The Maryland incorporator and resident agent must sign the articles of incorporation.
- The filing party’s contact information.
Maryland does not require original signatures on new MD corporation filings. The stamped form will be mailed to the address of the person who filed the documents.
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If you want a LLC, you file Maryland Articles of Organization:
To form a Maryland LLC, you file Maryland articles of organization and pay the $100 fee. The basic requirements of Maryland LLC filings are:
- The business name must have a limited liability company ending or variation of it such as LLC, L.L.C.
- The Maryland business name must be different than already registered Maryland businesses.
- The duration of the Maryland LLC, (Usually perpetual.)
- Maryland limited liability companies do not need to state a LLC purpose.
- The Maryland registered agent and the physical address.
- The names and addresses of the initial member(s) are not required.
- If the MD limited liability company is to be managed by one or more managers, you must specify this management structure. Managers names are not required.
- Someone must sign as the MD LLC organizer.
Maryland does not require original signatures on new MD LLC filings. You’ll get a certificate of formation mailed back to you after the state approves your filing