How to start an LLC in Maryland?

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Introduction

Starting an LLC in Maryland may appear difficult at first. The state is close to Delaware, which is a more popular place to incorporate limited liability corporations, or LLCs.

The “Old Line State” is, nonetheless, still worth considering. For one thing, forming an LLC there is less expensive than in Delaware. In addition, in order to conduct business in Maryland, you must first register.

Find out whether the name you want is available

You should definitely check the state website’s Business Entity Search feature before attempting to file with a business name that might not be accessible in Maryland.

Although it is not needed, now is the perfect time to see whether a website domain name that matches is also available.

How much does it cost to form an LLC in Maryland?

Registering an LLC in Maryland costs $100. There is an extra $50 cost if you want to expedite your submission. A Certificate of Status is also available for $20 at the time of filing.

Name your business entity

If you’ve established that your LLC name is available but aren’t ready to create your LLC yet, you can file a Corporate Name Reservation Application to hold a business name for up to 30 days. The regular charge is $25; expediting the procedure costs an extra $20.

Please note that your company name must include the words “limited liability company” or the approved acronyms “LLC,” “L.L.C.,” “L.C.” or “LC” as required by state law.

Hire a Resident Agent

A resident agent, also known as a registered agent, is required to incorporate an LLC in Maryland. If an owner or employee is above the age of 18 and a Maryland resident, they can be recognized as the company’s resident agent. A resident agent might also be a Maryland business or LLC.

Hiring a specialist organization to operate as your resident agent is a popular option. This service usually costs between $100 to $300 each year, however some companies charge as little as $50. To guarantee that you obtain good value for your money, you should conduct as much research as possible.

File Articles of Organization

The Maryland Business Express website is the quickest and easiest way to create an LLC. Make sure your LLC has a physical address; PO Boxes are not allowed.

You can also fill out an Articles of Organization form, making sure to include your authorized resident agent’s signature. Please send the form to:

Department of Assessments and Taxation

301 W. Preston Street

Baltimore, MD 21201-2392

The cost of forming an LLC in Maryland is $100. Paper filings take four to six weeks to process, whereas online submissions take seven days. For an extra $50, paper filings can be processed and approved within seven days. Your document will be certified for $20 + $1 per page. A Certificate of Status can also be purchased for $20 at the time of filing.

Create an LLC Operating Agreement

An operating agreement essentially spells out how you plan to conduct your limited liability company. It covers everything from day-to-day operations to the amount of money each member will give. An LLC operating agreement, while not needed, is a useful guideline that may help you avoid future problems with your company partners. It is also seen as a must for adding respectability to your company.

Get an Employer Identification Number (EIN)

An EIN, also known as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number, is necessary for most organizations (FTIN). If your company is a single-member LLC with no workers, however, you can use your Social Security number instead. An EIN helps secure the privacy of your Social Security number, even if it isn’t necessary.

File an Annual Report

You must file an annual report in Maryland that includes information about your company activities and total sales inside the state. It comes with a $300 annual fee. Regardless of whether the LLC is domestic or international, the cost remains the same.

Correcting Maryland LLC Filing Errors

You can file Articles of Amendment if you submit your LLC forms only to discover problems later. Handwritten submissions are more likely to be rejected, thus the state suggests that you complete the documentation on a computer or typewriter.

Articles of Amendment cost $100 to file, and usual processing takes six to eight weeks. You may, however, speed up the procedure by paying an extra $50. The state will automatically charge you the expedited cost if you file online. To prevent this, send your application to the Maryland State Department of Assessments and Taxation (SDAT).

In addition to completing the processes outlined above to incorporate your Maryland business organization, double-check with the state to confirm the current nature of LLC filing regulations, paperwork, and costs. Things might change at any time, so be sure you’re going ahead with the most up-to-date information.

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