Are you thinking about starting an LLC in Maryland? If you are, you’re excited about launching a new business. Maryland offers a suitable environment for businesses of all sizes, with its tax incentives and lively economy. Follow these steps, and you’ll take care of all the legal (and many practical) aspects of setting up your Maryland LLC, whether it’s in Baltimore or Annapolis.
Step 1: Name your Maryland LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Received a Certificate From the State
Step 5: Obtain an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your Maryland LLC
When starting a business in Maryland, you must select a name for your articles. To comply with Maryland’s naming regulations, keep the following key points in mind:
- Your business name must contain “limited liability company,” “LLC,” or “L.L.C.”
- Make sure the name you choose is different from existing businesses in Maryland. You can check availability on the Secretary of State’s website.
- Avoid using terms associated with government agencies (e.g., State Department, CIA, FBI, Treasury, etc.) in your business name.
- Certain words (such as “bank,” “lawyer,” “attorney,” “credit union,” etc.) may necessitate additional documentation and licensing paperwork.
Here’s a complete list of Maryland’s naming guidelines.
Additional considerations:
Reserve your name: Once you’ve chosen a name for your LLC, you can protect it with the Maryland Department of Assessments and Taxation. Reserving your name means another business can only use it once you officially establish your LLC.
Start by verifying the availability of your chosen name using the Maryland Business Express Business Name Search. If the name is available, email sdat.charterhelp@maryland.gov to express your intention to reserve the name.
Website domain: Even if you don’t need a webpage immediately, you’ll likely require one. Consider purchasing your domain name now to reserve the option for a future website. Before settling on your LLC name, it’s wise to check the availability of the corresponding URL.
Step 2: Choose a Registered Agent
In Maryland, you must appoint a resident agent for your LLC. This registered agent can be an individual or entity authorized to accept official legal documents and notices on behalf of your LLC.
The resident agent can be a person (including yourself or an LLC employee) or an entity providing resident agent services. They must adhere to the following criteria:
- Entities must offer resident agent services.
- The agent must maintain an address within Maryland.
- The agent must be physically present and available to receive documents during standard business operations.
A popular option is to enlist the services of a specialized company to serve as your resident agent. This service generally ranges from $100 to $300 annually, though some providers offer it for approximately $50. Conducting research to ensure you receive good value for your investment is advisable.
Step 3: File an Articles of Organization
The articles of organization serve as the foundational document that officially establishes your LLC, outlining basic information about it.
When preparing your articles, you’ll typically need the following information:
- Your LLC name
- The name, address, and signature of your resident agent
- A brief statement explaining why you formed the LLC
- The signature of the individual forming the LLC
The quickest way to establish your LLC is to use the Maryland Business Express website. Ensure you provide a street address for your LLC, as post office boxes are not accepted.
Alternatively, you can fill out an Articles of Organization form, ensuring it includes the signature of your designated resident agent. Mail the form to:
301 W. Preston St.Baltimore, MD 21201-2392
In Maryland, the fee for forming an LLC is $100. Online submissions are typically processed within seven business days, while paper filings take four to six weeks. With processing completed within seven days, you can expedite paper filings for an additional $50. For a certified copy of your document, there’s a fee of $20 plus $1 per page. Additionally, you can pay $20 for a Certificate of Status at the time of filing.
Step 4: Received a Certificate From the State
After the LLC’s formation documents are approved, the state will issue a certificate confirming its formal existence. This certificate allows the LLC to acquire an Employer Identification Number (EIN), obtain business licenses, and open a bank account.
Step 5: Obtain an Operating Agreement
An operating agreement outlines how your LLC conducts its business operations.
Though only sometimes required by the state, having an operating agreement is crucial for your business. A written operating agreement is beneficial for several reasons, including resolving disputes over financial agreements and potential litigation. Without one, courts base their decisions on state law, which may not align with your LLC’s and its members’ best interests.
Your operating agreement can address several key aspects, including:
- The LLC’s name and primary address
- Duration of the LLC’s existence
- Name and address of the resident agent
- Details about the articles of organization
- Business purpose
- Members and their contributions
- Allocation of profits and losses
Step 6: Get an Employer Identification Number
All newly formed LLCs must obtain an Employer Identification Number from the Internal Revenue Service. The nine-digit EIN is a business’s equivalent of a social security number. It is essential for paying income tax, filing tax returns, opening business bank accounts, and conducting other vital functions.
You can obtain an EIN online for free.
LLC State Guides
FAQs:
How Much Does it Cost to Create an LLC in Maryland?
The Maryland Articles of Organization can be filed for a fee of $100 via mail or in-person submission or $155 for expedited online filing. Additionally, Maryland LLCs must pay a significant annual report fee of $300 annually.
Do I Have to File an Annual Report For My Maryland LLC?
Yes. Maryland LLCs must file an annual report through the Maryland Department of Assessments and Taxation to maintain good standing.
How Long Does it Take to Form a Maryland LLC?
Online submissions are typically processed within seven business days, while paper filings may take four to six weeks.
