Overview
The cost to register a business depends on the type and location. It generally ranges from $50 to $1,000 for permits. Obtaining a permit usually takes four to six weeks. Before registering, you’ll need to make some key decisions like choosing a business structure. This impacts aspects such as personal liability, tax treatment, and credibility. You should also develop a business plan to help secure financing and reach objectives. Additionally, opening a business bank account provides separation from personal finances.
Filing and Timing
On average, online filings for approval of an LLC take two weeks. Maryland offers expedited filing by mail which takes seven business days for an additional $50.
Factors like filing method can influence how long it takes to form an LLC in Maryland. For example, standard mail processing takes six weeks while accelerated service can be same day. Overall, the entire registration process usually takes between five to seven days if filed online with all required documents. However, missing information can lead to delays. Using a professional service can help ensure smooth filing.
Maryland provides a supportive environment for small businesses, including no franchise tax. The state’s proximity to Washington D.C. also offers opportunities like federal contracts. If you decide to start a business in Maryland, thorough planning and preparation can help set up future success.
Licenses and Legal Formation
Many municipalities require different licenses and permissions to start and operate a business in Maryland.
Once you’ve gathered all of your information together and filed your Articles of Organization, it can take from 6-8 weeks for the Maryland Department of Assessments and Taxation to legally create your LLC. If you pay an additional expedited fee, your LLC can be formed in as few as 24 hours.
Open a Maryland corporation by filing the Articles of Incorporation with the Maryland Department of Assessments and Taxation, before creating bylaws and directors.
One benefit of an LLC in Maryland is that it provides liability protection for its members – personal assets won’t be affected by business debts or issues. Another advantage is the tax implications.
Cost and Tax Considerations
Maryland LLC costs $100 to file Articles of Organization. LLCs don’t file tax returns but must submit an annual personal property return by April 15. Sole proprietors report income/expenses on Schedule C. LLCs have flexibility in taxes, allowing potential savings.
Online LLC approval takes 5-7 days. Mail takes 4-6 weeks, or 1 week expedited for $50. An Operating Agreement isn’t required but recommended to outline owners, operations, management.
Setting Up Your LLC
Check the Maryland website to see if the desired LLC name is available and conforms to name regulations. Names need "LLC" and can’t confuse with government agencies or include restricted words like "bank."
A separate bank account helps with LLC asset protection and makes accounting/taxes easier. Once opened, they provide business debit cards or credit cards.
Name your MD LLC first. Other steps include getting an EIN, filing Articles of Organization, making an Operating Agreement, and more. But choosing the name is essential to start.