So, you’re thinking about starting a business in Maryland? Great! Maryland is a great state for businesses, with a variety of resources and support available. But where do you start?
Checkout this video:
Overview
Decide the business structure
There are several business structures to choose from when you start your business. The business structure you choose will determine what type of tax return you file, how much you pay in taxes, and your personal liability.
The most common business structures are:
-Sole Proprietorship
-Limited Liability Company (LLC)
-Partnership
-S Corporation
-C Corporation
You can choose to be a sole proprietor, partnership, LLC, S corporation, or C corporation.
File the Articles of Incorporation
You will need to file the Articles of Incorporation with the Maryland Department of Assessments and Taxation. The filing fee is $100. You will need to provide the following information:
-The name of the corporation
-The address of the corporation’s registered office in Maryland
-The names and addresses of the corporation’s incorporators
-The purpose of the corporation
-The number of shares the corporation is authorized to issue
-The names, addresses, and signatures of the directors
Appoint the initial directors or officers
The first step in incorporating your business is to appoint the initial directors or officers of your corporation. You will need to designate:
The names, addresses and occupation of each director or officer;
The number of directors or officers; and
The duration of their terms in office.
You will also need to file a Certificate of Incorporation with the Maryland Department of Assessments and Taxation. The Certificate of Incorporation must include:
The name of your corporation;
The address of your principal office;
The names, addresses and occupations of each director or officer;
The number of directors or officers; and
A statement that your corporation is authorized to issue only one class of stock.
Hold the first meeting of the board of directors
The first step in incorporating your business is to hold the first meeting of the board of directors.At this meeting, the board will appoint officers, adopt initial bylaws, and issue stock. You will also need to adopt a corporate resolution authorizing the incorporation of the business.
The next step is to file the Certificate of Formation with the Maryland Department of Assessments and Taxation. This form must be signed by a majority of the directors and must include the following information:
-The name of the corporation
-The address of the corporation’s principal office in Maryland
-The names and addresses of the directors
-The names and addresses of each incorporator
– The purpose of the corporation
– The number of shares of stock that will be authorized
– The duration of the corporation (if it is not to have perpetual existence)
-Whether or not the corporation will have members
– Any other provisions required or permitted by law
Adopt bylaws or regulations
Adopt bylaws or regulations. You may need to adopt bylaws or regulations if your business is a corporation, cooperative, real estate investment trust, or non-profit organization. Bylaws typically establish the procedures for running the organization and governing its members. Regulations typically statewide or federal requirements that your business must follow, such as environmental regulations.
Issue stock
Most small businesses are organized as either sole proprietorships or corporations. Corporations can be either “C” corporations or “S” corporations. S corporations are a special type of corporation that meet certain IRS requirements. An S corporation does not pay corporate taxes on its profits; instead, the corporation’s profits “pass through” to the shareholders, who must report the income on their personal tax returns. Most small businesses in Maryland are sole proprietorships or S corporations.
If you intend to form a corporation, you will need to file Articles of Incorporation with the Maryland Department of Assessments and Taxation. The articles must contain certain information, including:
-The name of the corporation
-The address of the corporation’s principal office
-The names and addresses of the corporation’s incorporators
-The purpose of the corporation
-The number of shares of stock the corporation is authorized to issue
-Whether the corporation will have perpetual existence or will dissolve after a certain date
Apply for an Employer Identification Number
If you will have employees working for you, you will need to obtain an employer identification number (EIN) from the Internal Revenue Service. This is an identification number similar to a social security number that will be used for tax purposes. You can apply for your EIN online, by fax, or by mail.
Open a business bank account
You will need to open a business bank account so that you can separate your personal and business finances. This will make it easier to track your expenses and income, and will make it simpler to file your taxes at the end of the year. Most banks will require that you show proof of your business registration before they will open an account for you.
##Heading: Get a Maryland Business License
##Expansion:
All businesses in Maryland must have a business license, which is also sometimes called a occupational or trade license. You may need to get additional licenses or permits depending on the type of business you are operating.
The process for getting a business license in Maryland is relatively simple. You can usually apply online, by mail, or in person at your local county office. You will need to provide some basic information about your business, such as its name and address, and pay the license fee.
It is important to note that you may need to renew your business license every year, and that the fees may increase over time.
Get business insurance
Insurance is one of the most important things you can buy for your business. Many types of businesses are required by law to have certain types of insurance, and even if it’s not required, insurance can protect your business from potentially devastating losses.
There are many different types of business insurance, and the type you need will depend on the nature of your business. Some common types of business insurance include:
Property insurance: This type of insurance covers damage to your property, including buildings, equipment, and inventory.
Liability insurance: This type of insurance protects you from claims that may be made against your business for injuries or damages caused by your business activities.
Product liability insurance: If you sell products, this type of insurance protects you from claims that may be made against your business for injuries or damages caused by your products.
Business interruption insurance: This type of insurance covers lost income and expenses if your business is forced to close due to a covered event, such as a fire or natural disaster.
You can purchase Business Insurance through Maryland Insurance Administration or any number of private insurers.
Register with the Maryland Department of Assessments and Taxation
The first step in starting any business in Maryland is to register your business with the Maryland Department of Assessments and Taxation. You can register online or by mail.
After you register your business, you will need to obtain a Business License from the Maryland Department of Business and Economic Development.
You will also need to obtain a Sales and Use Tax License from the Maryland Comptroller of the Treasury.
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