The geographic and demographic advantages offered by Maryland are one of the key factors that have lead to a strong and stable growth in both business and economy. The number of incorporated businesses in Maryland has increased in the last decade as the state presents a business-friendly culture that has not only embraced one and all but also is responsible for the development of key innovative industries. Some of the biggest companies headquartered in Maryland include Marriott International, Lockheed Martin, Johns Hopkins Medicine, MedStar Health, The Ritz-Carlton Company, Under Armour Inc., Discovery, and Piedmont Airlines among others.
Why Choose Maryland for Incorporation?
Why is company incorporation in Maryland considered a good business decision? There are several reasons but the most important are the benefits and advantages that businesses enjoy. Some of the industries where businesses have seen positive growth, revenue generation, and expansion include BioHealth & Life Sciences, IT & Cybersecurity, Advanced Manufacturing, Aerospace & Defense, and Financial Services.
Now let’s take a look at some of the salient benefits that are responsible for fueling growth of small businesses in this state:
- Enterprise Zones: The Maryland Department of Commerce has designated 6 enterprise zones for businesses. In order to qualify for EZ business tax credits, you will have to set up a company in a Maryland enterprise zone. The most important state income tax credit is on new jobs being created where the credit would be a one-time maximum of $1,000. Map of Enterprise Zone
- Brownfields Tax Incentive: This is a tax incentive program that is also known as the Brownfields Revitalization Incentive Program (BRIP). If your business qualifies for this program then you can benefit from real property tax credit between 50% and 70%.
- One Maryland Tax Credit: You can benefit from this tax credit only after company incorporation in Maryland jurisdictions like Allegany, Baltimore City, Caroline, Dorchester, Garrett, Kent, Somerset, Washington, Wicomico, and Worcester. The amount of income tax credit your business entity qualifies for is dependent on the total amount of capital investment.
How do you incorporate in Maryland?
Is there a process for company incorporation in Maryland? Do you require any specific documents? How can you submit or file these documents? These are some of the questions that you will be confronted with and hence the following steps will provide you with information on how incorporation works in Maryland:
Type of Business
What type of business would you like to form in Maryland? The four most common business structures in the state of Maryland are sole proprietorship, corporation, partnership, and Limited Liability Company. If you are planning to form a corporation then you need to identify whether it is a domestic or foreign entity as the documentation, fee, and other aspects would be different. The first step towards company incorporation in Maryland is to identify the type of business you want to set up.
Business Entity Name
What is the next step towards incorporation in Maryland? The next step is to identify and reserve a name and this can be done as follows:
- Naming Requirements: The naming requirements for LLC should be pursuant to 2010 MD Code § 4A-208 while that of a business corporation should be pursuant to MD Corp & Assn Code § 2-106 (2015). The name of each limited liability company must contain words like “Limited Liability Company” or abbreviations like “L.L.C.” or “LLC”. A corporate name must contain words like “corporation”, or “incorporated” or abbreviations like “corp.” or “inc.”
- Business name search: You need to search for a business name that is not in use currently. You can conduct a name search here.
- Name Reservation: Once you have identified your business entity name, you can reserve the name with the State Department of Assessments and Taxation for a period of 30 days.
- Name Registration: If you are foreign entity planning to set up a company in Maryland then you will be required to register your business name with the State Department of Assessments and Taxation pursuant to MD Corp & Assn Code § 7-101 (2015).
Choose a Registered Agent
According to MD Corp & Assn Code § 2-108 (2015) for business corporation and 2010 MD Code § 4A-210 for LLC, each business entity needs to designate a registered agent in the state of Maryland. We are one of the respected registered agents in Maryland and will be responsible for initiating company incorporation in Maryland through processing of all your documents including “Articles of Incorporation” for domestic corporations and “Certificate of Registration” for foreign corporations.
Articles of Incorporation and Certificate of Registration
If you are planning to form a domestic corporation (For profit/stock corporation), then you will have to file “Articles of incorporation” pursuant to MD Corp & Assn Code § 2-104 (2015). If you are planning foreign business incorporation in Maryland then you will be required to file a “Certificate of Registration” pursuant to MD Corp & Assn Code § 7-204 (2010). In order to streamline the process we can file documents on your behalf through the online process or through an expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Maryland, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Maryland Incorporation
What would it cost to set up company in Maryland? Check Fees here!