A Maryland LLC, which is also known as a limited liability company, offers flexibility in management and pass-through (by default) taxation. It also provides liability protection to business owners and personal assets. It sounds great, but in order to run your business, you need to give your LLC a name, identify a registered agent, file Articles of Organization at the Maryland Department of Assessments & Taxation. The Articles of Organization are $100 for mail filing or in person. They cost $155 to expedite online filing. For Maryland LLC formation, you can file online in about one week. If you file by mail, it may take up to six months. Our step-by-step guide to LLC formation will guide you.
1. Name Your LLC
Name selection is crucial as it sets the tone for how your customers will view your LLC. But you cannot choose any name to your LLC. You will need to comply with MD Corp & Assn SS 1-502(2019). Your LLC name should:
- Maryland is looking for unique business names.
- Include “Limited Liability Company,” “L.L.C.” or either “LLC,”, “L.C.” or “LC.”
- You should not have any identifiers that indicate your business to be another type of entity, such as “corporation” and “corporation”.
Is it possible for me to reserve a Maryland business address?
Yes. Maryland permits LLCs for a 30-day reservation of a business name. Just fill out the Corporate Name Reservation form and pay $25 (plus $20 for expedited services).
2. Designate a Registered agent
Designating a registered agent is the next step. They are known as “resident agents” by Maryland but they can be used interchangeably. Your registered agent can be you, another Maryland resident, a professional service, or both. Maryland LLCs need to register with an agent in order to be listed on the Articles of Organization.
What does a registered representative do?
MD Corp & Assn. Code SS7-205 outlines requirements for a Registered Agent in Maryland. Your registered agent must meet the following minimum requirements:
- A physical address is required in Maryland.
- You should keep the address open during regular business hours.
- You can accept legal mail and correspondence from Maryland SDAT on your behalf and have them delivered to you as quickly as possible.
Do you have the potential to become your own Maryland registered agent
Yes, but why? Privacy is essential. Your LLC’s registered agent will make your personal information public. The state registers the information of professional registered agents, protecting you from spammers or hackers.
If you are planning to go on vacation, it is possible that you will miss urgent legal mail. A registered agent is a way to ensure your LLC stays in compliance.
To form an LLC you will need to fill out and file the Articles of Organization. It costs $100 to file in person or by mail and $155 for expedited filing online.
Notification: All data on this form will be part of the public record.
You will need the following information to fill out the form:
- Company name. Name must include “Limited Liability Company”, or abbreviations like “LLC”, or “L.L.C.”
- Purpose. Businesses keep this section simple with statements such as “The purpose is to engage any lawful activity within the state of Maryland.”
- Address of LLC. In Maryland, list a street address.
- Address and name of registered agent. Name and address of your registered agent.
- Maryland LLC authorized individual. The authorized person to sign the Articles of Organization of your LLC and submit them.
How can I ensure that my personal information is not made public?
The state paperwork of your LLC can allow hackers and scammers a glimpse into your private life. A registered agent will be able to allow you to list other people’s information on this form. This is the best way to protect your personal information.
What time does it take for a Maryland LLC to be formed?
Filing via mail can take up 6 weeks. The expedited mail filing option is available for $50. This will allow you to file in seven days. Online filings can be processed within one week. Hand-delivered documents can be received same-day between 8:30 AM and 4:30 PM. For same-day LLC approval, you need to be available by 4:05 PM.
How do I file Maryland Articles of Organization
You can send your articles online, via mail, or in person.
Mail and in-person:State Department of Assessments and Taxation
Corporate Charter Division
301 W. Preston St. Room801
Baltimore, MD 21201
Online filings:
4. Make an LLC Operating Agreement
Operating agreements are one of the most important documents you will need for your LLC. The operating agreement, at its most basic form, will be the foundation of how your LLC operates. Operating agreements can cover things such as who the members are, how they contribute to the revenue and the procedures for dissolving an LLC. Operating agreements will serve as the roadmap for resolution in the event of disagreements between LLC members.
Do operating agreements in Maryland require LLC formation?
Maryland doesn’t require an operating agreement. However, this shouldn’t give the impression that your LLC doesn’t need one. Operating agreements are crucial because they define the boundaries between the LLC’s members and themselves. This distinction is critical to protect your LLC from liability. Without an operating contract, your LLC will have to comply with Maryland’s default LLC statutes.
What should be included within an operating agreement?
You will want to address the most important issues first, but operating agreements can be used to cover any topic that is not in violation of Maryland law. Things to be aware of include:
- Initial investments
- Distributions, profits, and losses
- Management, voting rights and decision-making authority
- Transfer of membership interests
- The business must be liquidated
An operating agreement is required for a single member LLC.
Yes. An operating agreement is required to open a bank accounts. A separate bank account for your business helps you protect your LLC’s assets from liability.
5. Get your EIN
Register with the IRS to obtain an Employer Identification Number (EIN) for your LLC in order to open a bank account and conduct business separately. An EIN is a nine digit code you’ll use for filing taxes or other IRS-related forms. The IRS allows you to apply online for an EIN.
Do I need an EIN to register my Maryland LLC
It is clear that the answer is yes. For your Maryland LLC to be eligible for an EIN, you will need it. An EIN is required by banks to open a bank account. To prove that your LLC is separate from you, opening a bank accounts for your business will be a crucial step. EIN will be required for any LLC that plans to hire employees.
