When you’re starting a business in Maryland, the first step you need to think about is the incorporation process.
Know that when you’re incorporating in Maryland, you just can’t randomly select any type of structure to incorporate in. Not all businesses have the same needs and goals, so it only applies that no single business structure fits with any one business.
Whether you’re looking to incorporate a Corporation, a Non-Profit organization or an LLC, make sure to do your research well, compare structure advantages with your business needs before making the final decision. You can get further insights on choosing your business structure with the resources below.
Choosing a structure to incorporate in is only one of the tasks involved in how to incorporate in Maryland. There are also a number of other tasks you need to do and comply with to become a legal business entity.
The Secretary of State’s Office of Maryland should be your go-to for requirement information and assistance. In addition, the Maryland Department of Assessments and Taxation is also a vital information hub. Incorporation filing, submission of business periodic requirements and reports, and more are processed here.
Below are a number of Startup Savant guides for the formation of various business structures. Choose the right one for you and get started!
Now that you have followed the steps above, you are officially a Maryland business owner. Here are the additional steps to help you start a successful business.
The actual hard work commences at this stage. Choosing a business structure and obtaining all the required information details on forming your business is only half of the tasks involved. The other half involves other incorporation requirements as mandated by state laws.
Hiring a Maryland Registered Agent, electing officers and an initial set of directors, completing all obligations in terms of business taxes, licenses, permits, and regulations, obtaining an LLC EIN, taking care of shares of stocks, to naming your business and registering that name are just some of the tasks in the incorporation process.
Aside from state-mandated requirements, internal documents should also be created to ensure that your business starts off on the right foot. Internal documents such as a business plan, Corporate bylaws, and an Operating Agreement are just some of these. Most importantly, a business no matter the entity type should always have a Corporate Records Book for safekeeping of business documents.
As a new Maryland business, keeping your personal and business finances separate is very important. The best way to do this is to open a new business checking account.
To find the best bank to start a checking account with, do some research. You can always use the bank you keep your personal account with, just be sure to keep them 100% separate.
The next step when starting a business in Maryland is to build a business website. This will give you added credibility and help future customers find out more.
Without hiring an expensive web designer or building everything from scratch, WordPress is a great option to create a customized business website without having any tech skills. Get walked through the entire process with this step-by-step guide.
When you have already incorporated your business, it is now your responsibility as a legal entrepreneur to honor the rules and regulations of the state. This way, you will have smooth business operations and a clearer path to success. However, do not forget that your responsibilities do not end here.
In fact, it’s just starting to begin. Observe annual meetings, filing for annual reports for as long as the business is in operation, and periodically renewing and amending business licenses and taxes obligations to avoid any undue scrutiny from government agencies.
Please be reminded that this article is only an informational guide, and this should never be taken as a legal document of any kind. In the process of learning how to incorporate in Maryland, do not hesitate to always seek professional help from a business lawyer to assist you.
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