How To Form an LLC in Maryland
Maryland is an excellent place to form a new LLC
with the highest median household income in the country
and the top-ranking business survival rate.
Every state has slightly different requirements for forming an LLC.
Follow along closely to learn the required steps for creating
your own limited liability company in the state of Maryland.
There are two ways to form an LLC in Maryland.
You can form one yourself
or you can hire a service to do it for you.
Let's start by looking at the five basic requirements to form an LLC in Maryland on your own.
One: Name Your LLC
You'll need to choose a company name that complies with Maryland naming requirements
and do a name search on the state of Maryland website to make sure the name isn't already taken.
You should go ahead and register the web domain for your business website and email as well.
Two: Choose a Resident Agent
Maryland requires that you nominate a resident agent
more commonly known as a registered agent
for your LLC who is your business's point of contact with the state.
The resident agent can be an individual within the company including yourself
or you can hire a professional service authorized to do business in the state of Maryland.
Three: File The Articles of Organization
To register your Maryland LLC you will need
to file the articles of organization with the state of Maryland.
This can be done online or by mail.
You should decide whether your LLC will be member-managed or manager-managed.
Member-managed means all members of the LLC manage the company.
This is good for small organizations where everyone is involved in day-to-day operations.
The second option is manager-managed
where individuals are appointed to manage the LLC.
This is appropriate for larger organizations where not
everyone is involved in the day-to-day affairs of the business.
Four: Create an Operating Agreement
You should also create an operating agreement to establish ownership terms and member roles.
This is an internal document for reference
and does not need to be filed with the state of Maryland.
This foundational document is the core of your LLC and will help you maintain your organization
as well as further establish your LLC as a separate legal entity.
Five: Obtained an EIN
Lastly you'll need to get an Employer Identification Number or EIN from the IRS.
Also known as a Federal Tax Identification Number
your EIN is like a social security number for your LLC and is important for taxes and banking.
EIN's are free of charge and can be obtained from the IRS
online or through the mail.
And with that you'll have formed a Maryland LLC on your own.
Option Two: Hire a Professional Service
The second way to create a Maryland LLC is to hire a professional service to create your LLC for you.
Hiring a professional service to file your forms and act as your registered agent for the LLC
will cost you an additional fifty to one hundred and fifty dollars.
However there are several benefits to working with a pro.
A hired registered agent helps with getting your reports filed on time
helps you stay organized by keeping your business mail separate
and is available at all regular business hours to accept official mail and legal papers on your LLC's behalf.
A final and important additional benefit of using a service is privacy.
A professional service will provide a level of privacy by withholding your personal name
and home address from the LLC's contact information.
There are many reasons you might not want
your personal information easily accessible and associated with your business.
Hiring a professional LLC formation service is an easy way to accomplish this.
Now that you have seen the different requirements and ways you can form an LLC in Maryland
visit our site and take some time to research your options
and establish a solid foundation for your business activities.
Click on the links in the description below to research the top five professional formation services
or get more information on how to form a Maryland LLC on your own.
We offer a host of free templates and tools to help accelerate your small business
from operating agreements to business plans
all free of charge.
Visit us at Howtostartanllc.com