How To Form an LLC In Maryland
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1. Choose a Name for Your Maryland Limited Liability Company
Check for an Available Name for the LLC in Maryland: Before you file to form an LLC in Maryland, choose a name for your LLC that is unique. To find out if the name that you have chosen for your LLC is unique, you should thoroughly search online databases and other records. You want to make sure that the name is available and not in use by another LLC in Maryland. You might also want to request information by writing to the State Department of Assessments and Taxation, Trade Name Search and Registration, 301 West Preston Street, Baltimore MD 21201 or by calling the office at (410) 767-1340.
Reserve a Name for Your Maryland LLC: You do not need to reserve a name before you file to form your LLC in Maryland, but if you would like to reserve a name for your LLC before you file, you should contact the State Department of Assessments and Taxation, Trade Name Search and Registration, 301 West Preston Street, Baltimore MD 21201 or call the office at (410) 767-1340.
Filing for Trademarks Protection and Doing an LLC Name Search: You might search databases and other records in Maryland and learn that the name that you want to use for your LLC is available in Maryland but in use by an LLC in another state. You might learn that there are restrictions that affect how you can use the name that you have chosen for your LLC. You can consult an attorney to learn what these restrictions may be. For more information on choosing a name for your LLC, go to how to choose a name for your llc.
Maryland LLC Name Requirements: When you are choosing a name for your LLC, remember that in Maryland the name of your LLC must include the designation "LLC," “L.L.C.,” “L.C.,” or "Limited Liability Company." It is important to note that the term “LLC” stands for “Limited Liability Company” and not “LLC Corporation, “Limited Liability Corporation,” or anything else related to a corporation. An LLC is a different kind of business entity than a corporation.
2. Find a Registered Agent in Maryland
Before you file to form an LLC in Maryland, choose the registered agent that will act as an agent for service of process, receiving all tax documents, legal notices, and other official notices for your LLC. You might want to use the services of one of the corporate service companies that provide registered agent services to LLCs. These companies usually charge around $75.00 to $150.00 for these kinds of services.
3. File Articles of Organization with the Maryland Secretary of State
Minimum Requirements for the Articles of Organization: The Articles of Organization that you file for your Maryland LLC must contain the name and purpose of your LLC, the mailing address of your main office, and the name and address of your registered agent. The Articles of Organization must be signed by the organizer and the registered agent. You can download a form for this document online at Maryland LLC.
Other Maryland Legal Provisions: You might consider including other clauses along with the minimum requirements when you create Articles of Organization for your LLC. You can consult a lawyer for guidance in including additional clauses that are most relevant and beneficial to your company.
Where to Submit the Articles of Organization for Filing: You can mail your Articles of Organization to the State Department of Assessments and Taxation, Charter Division, 301 W. Preston Street; 8th Floor, Baltimore, MD 21201-2395.
Filing Fee: The fee to file Articles of Organization in Maryland is $100.00 plus $20.00 for a Certificate of Status.
4. Form a Maryland Limited Liability Company Agreement (Operating Agreement)
After you file Articles of Organization to form an LLC in Maryland, you will want to create an LLC Agreement that governs all aspects of the LLC as well as the actions between the members of the LLC. All of the members of your LLC must sign the LLC Agreement. You should realize that the details of your LLC Agreement will depend on factors such as how many people are involved, how much money is being invested, how the money will be distributed, and whether the company will be managed by a manager or by the members of the LLC. You should also realize that the items included in an LLC Agreement depend on the purpose of the LLC. For example, an LLC that was formed to operate a retail store may need to include different items in an LLC Agreement than an LLC that was formed to own and develop real estate. You can consult a lawyer and an accountant for guidance in creating an LLC Agreement that is in compliance with all state requirements and federal tax laws.
You will also want to prepare to make securities filings, obtain an EIN from the IRS, and obtain a business license in the locale where you will be conducting business. You should be aware of the corporate services companies that make these kinds of filings for LLCs. For more information on how to get a business license in your city, visit our online guide at http://www.cityapplications.com/business-licenses.html.
5. Qualify Your Maryland LLC to Do Business in Other States
In most states, LLCs must register or qualify in order to do business. You will need to register or qualify your LLC to do business in your home state if your main office is located outside the state of Maryland. You will need to pay taxes in your home state when you do business in other states in most cases. To find more information on qualifying your LLC to do business in other states, go to [Qualifying to Do Business in Other States].
6. Make Annual Filings and Pay Annual Taxes in Maryland
If you have an LLC that is registered in the state of Maryland, you may need to make some periodic filings with the state. Contact the State Department of Assessments and Taxation if you have any questions about what filings apply to your corporation.
You will have to file a tax report and pay taxes every year once you have registered your LLC in the state of Maryland. Visit the official website of the Comptroller of Maryland at Maryland LLC to learn about the taxes that may apply to your LLC and to download tax forms.
Forming an LLC in Maryland involves complex decisions, especially when more than one person is involved. You can consult an accountant and an attorney for guidance during the process of forming an LLC so that you can feel more confident that an LLC is right for your company and that all your paperwork is being processed correctly.
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This site is for informational purposes only and does not constitute legal, financial or tax advise. The information on this site should not be relied upon as an official source of information and should be independently verified.