Are you considering starting a Limited Liability Company (LLC) in Maryland? Understanding the requirements and steps involved is essential before filing with the state.
Here is what you need to know before creating an LLC in Maryland.
LLC In Maryland cost
The fee to form an LLC in Maryland is $100, with an additional $50 for expedited filing. It's important to note that these fees are subject to change, so check with the State of Maryland website before submitting your application.
The standard processing time for filing is three weeks; however, if you need your documents sooner than that, the expedited option will get them to you within two business days.
Taking The Steps To Register An LLC In Maryland
Here are five easy steps that will get you on the path to launching your business.
Step 1: Name Your Business And Choose A Registered Agent
The first step in registering your Maryland LLC is to choose a business name. Your chosen name must be unique and should not mislead potential customers about its purpose or content. Once you have selected your desired name, make sure it is available by searching Maryland's online records.
You will also need to choose a registered agent—an individual or company that will accept legal documents related to your business on behalf of the LLC. The registered agent must be located in Maryland, so if you are not based in the state, you should consider hiring an experienced registered agent service provider.
Step 2: File The Articles Of Organization
The next step is filing the Articles of Organization with the Secretary of State's office in Annapolis. This document outlines important information about your LLC, such as its purpose and members—the individuals who own it—and other details required by law. It typically takes two weeks for processing and costs $100 to file online or $150 if you mail it in. Make sure to keep all documents related to this process for future reference.
Step 3: Create An Operating Agreement (Optional)
An Operating Agreement outlines how your LLC will be managed and is designed to keep things running smoothly between members. It is not required by law, but having one can help avoid potential issues if any disputes arise over how one made decisions or how profits were distributed among owners.
Step 4: Get An EIN Number
Your Employer Identification Number (EIN) from the IRS identifies your company for tax purposes and allows you to open a bank account under its name instead of using yours personally. Getting an EIN is free and easy; simply go online at the IRS website, fill out Form SS-4 with basic information about your business, such as its address, type of entity, etc., then submit it for processing. You should receive an EIN within one week of submitting the form.
Step 5: Open A Business Bank Account
The final step in setting up your LLC is opening a separate business bank account in its name so that all money related directly to your company can be tracked easily and accurately come tax season. To open a bank account, you will need several documents, including proof that your business exists, such as copies of Articles of Organization or Operating Agreement plus identification cards from each owner listed on it, plus any other necessary paperwork requested by the bank. Double-check with potential banks beforehand, so you go into this process prepared with all the required paperwork before deciding which institution best suits your needs.
Choosing Your Business Name
Before moving ahead with the process of forming an LLC, make sure to check if your preferred name is available. The first step is to perform an entity search on the Maryland Department of Assessments and Taxation (SDAT). Doing so will provide information regarding whether your desired name is already taken. If so, you must develop another one that fits the regulations.
File Annual Reports & Pay Fees
Every LLC must submit an annual report to the SDAT, which incurs a $300 fee per entity - though this cost may vary depending on when you file.
Moreover, if your LLC has personal property holdings in Maryland, you should file a yearly Personal Property Tax Return with the SDAT and pay any related taxes due.
Other Fees And Costs Related To Starting Your Business
In addition to the cost of forming your LLC in Maryland, there are other fees and expenses related to starting your business that you should consider.
To start the formation process, you must obtain a Certificate of Status ($20) and submit your Corporate Name Reservation Application ($25 standard or $20 expedited).
A Corporate Name Reservation Application gives you the luxury of reserving a business name for an entire month without committing to registering it as an LLC. This allows entrepreneurs more time and flexibility when deciding on the perfect moniker for their company.
Have A Long-Term Budget In Mind
Budgeting for the costs associated with forming and maintaining an LLC is essential. This includes filing fees, annual report fees, taxes, etc. Before filing, set aside enough funds for these expenses so your business can remain current with all legal obligations. Additionally, consider seeking professional advice from lawyers and accountants who are well-versed in LLC formation. They can provide additional guidance on forming and maintaining an LLC and suggest other ways to save money over time.
Other Aspects To Consider When Forming An LLC In Maryland
Here are a few other things to consider when creating an LLC in Maryland.
Hiring A Resident Agent
When forming a Maryland LLC, it is essential to choose a registered agent—an individual or company that will accept legal documents related to your business on behalf of the LLC. This essential role should not be taken lightly, as the designated agent must be present in Maryland and able to receive service of process notices.
These documents can include notice of a lawsuit or other legal action. It is essential to select someone reliable, responsive, and available whenever needed.
Forming The LLC Online
You may form your LLC by using the Maryland Business Express. To do so, you will need to provide basic information about your business, such as its name, address, purpose, registered agent name and address, duration of the company (if it's not perpetual), and more. You will also need to pay the $100 filing fee for processing. If you need your documents returned posthaste, you can pay an extra $20 for expedited processing
Forming The LLC On Paper
If you prefer not to file online, you can mail in your Articles of Organization form instead. This document contains all the information listed above, but you'll need to fill it out or use a typewriter before submitting it, along with the $100 filing fee.
You may also order a Certificate of Status for another $20 fee. Processing times for paper filings typically take four to six weeks; however, you can pay an additional $20 for expedited processing if needed.
Final Considerations When Forming A Maryland LLC
Here are some other points to consider:
If you have all of these things, then you're well on your way to becoming a successful affiliate marketer.
There's no need to get fancy about it.
Knowing about a Maryland LLC's cost and associated requirements is essential for those considering forming an LLC in this state.
To ensure a successful formation process, it's best to seek professional help from a lawyer or other expert who can walk you through the process. Doing so will help prevent potential legal issues and allow you to focus on running and growing your business.
Further reading on MikeVestil.com Knowing how to start an LLC in Texas for free is easy if you satisfy one specific criterion.Legalzoom's LLC cost if you're looking for a service to handle the entire process.