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When you file paperwork with Maryland Secretary of State to set up LLC this is whatyou will receive:

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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!

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Maryland is home to 581,712 small businesses with the Government sector producing $52.1 billion in revenue. Industries like health care and social assistance, professional and technical services, and retail trade witnessed a rise in the number of businesses and employment. There are several industries where you can form a Maryland business and enjoy economic and business growth including BioHealth & Life Sciences, Advanced Manufacturing, Energy & Sustainability, and Agribusiness to name a few.

How can you form a Maryland business? There is a procedure that is followed and we as one of the top Maryland registered agents can assist you with the incorporation or LLC formation process. This will ensure successful set up of your business!

Let’s take a look at how you can incorporate or set up your business in Maryland.

Maryland LLC Registration and Formation

LLC company formation in Maryland is governed by 2010 Maryland Code – Limited Liability Company Act, Title 4A. The procedure for registration and formation of LLC is as follows:

Step#1: Maintain a registered agent

One of the essential steps towards company formation in Maryland is hiring and maintaining an agent. Whether you form a domestic or foreign Limited Liability Company in the state, each business entity in the state is required to maintain a registered agent pursuant to 2010 MD Code § 4A-210. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Maryland.

We are in compliance with all regulations in the State of Maryland.

Step#2: Name Reservation/Registration

A business name is crucial to the existence of any business entity and without a name, an LLC or business entity will not get registered in the state. A domestic or foreign entity can reserve their name for a period of 30 days pursuant to 2010 MD Code § 4A-209. Name reservation provides exclusive right to use a specified name. The name reservation application needs to be submitted to the State Department of Assessments and Taxation. The naming requirements for company formation in Maryland highlights the fact that the chosen business name should be distinguishable from the name of any other entity on the records of the state.

Step#3: Articles of Organization and Application for Registration

To initiate the process of company formation in Maryland, you will require registration documents specific to an LLC. These documents or forms are separate for domestic and foreign business entities.

• If you are planning to form a domestic LLC then you will have to file “Articles of Organization” pursuant to 2010 MD Code § 4A-204.
• If you are planning to form a foreign LLC in the state then you will be required to file “Application for Registration” pursuant to 2010 MD Code § 4A-1002.

The registration documents can be filed through mail, physical submission, or filed online with the State Department of Assessments and Taxation.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form a Maryland business, feel free to call us on 702-871-8678.

Maryland Corporation Registration and Formation

How do you form a corporation in Maryland? The incorporation will be governed by Title 2 (domestic) and Title 7 (foreign) of the 2015 Maryland Code, Corporations and Associations. The process of incorporation is as follows:

Step#1: Maintain a Registered Agent

One of the essential steps towards company formation in Maryland is hiring and maintaining an agent. Whether you form a domestic C Corporation or a foreign corporation, each business entity in the state is required to maintain a registered agent pursuant to MD Corp & Assn Code § 2-108 (2015).

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Maryland. We are in compliance with all regulations in the State of Maryland and will assist you to form a corporation in Maryland.

Step#2: Name Reservation/Registration

You will be able to transact business in the state of Maryland only if you have reserved or registered a corporate name that meets the requirements of MD Corp & Assn Code § 2-106 (2015). You can reserve the chosen name for a period of 30 days pursuant to MD Corp & Assn Code § 2-107 (2015) and foreign corporations can register their name pursuant to MD Corp & Assn Code § 7-101 (2015). The forms are different for reserving and registration of name and have to be filed with State Department of Assessments and Taxation. The naming requirements for company formation in Maryland highlights the fact that the chosen business name should be distinguishable from the name of any other entity on the records of the secretary of state.

Step#3: Articles of Incorporation and Certificate of Registration

If you are planning to form a Maryland business entity then the most important step is to prepare and file the right registration or business formation documents. The documents or forms are different for domestic and foreign entities.

• If you are planning to form a domestic Maryland corporation then you will have to file “Articles of Incorporation” pursuant to MD Corp & Assn Code § 2-104 (2015).
• If you are planning to incorporate a foreign business entity in Maryland then you will be required to file a “Certificate of Registration” pursuant to MD Corp & Assn Code § 7-204 (2010).

We can help in streamlining the process of company formation in Maryland by filing documents on your behalf through the online process or through an expedited process.

If you have any questions regarding Maryland incorporation or LLC formation, you can simply visit the Maryland Business formation page.

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Maryland is a state where innovation in business is one of the top priorities and the state and Federal government has in place numerous incentives and benefits that businesses can take advantage of to harness their full potential. In fact, there has been a rise in companies company Maryland that is owned by women. It ranks 2nd in a country where percentage of women-owned firms is concentrated with a share of 39.5%. It is interesting to note that small businesses established in Maryland received almost $106.2 million in 2017 from the U.S. Small Business Administration. This was made possible through the highly competitive Small Business Innovation Research (SBIR) program.

Advantages of setting up an LLC Or Corporation

Business growth in the “Free State” as this state is known has been quite remarkable and the primary reason is the advantages specific businesses have and the support provided by the state through incentive program. Whether you are planning to register a new company in Maryland as an LLC or a Corporation, there are distinctive advantages that your business can benefit from. Let’s take a look at some of them.

Advantage#1: Salient benefits of Corporation or LLC formation

Corporation

• Raise additional Funds: If you register a new company in Maryland as a C Corporation then the business entity will be able to raise additional funds through sale of stock.
• Tax credits: There are several state run tax credit programs that Corporations and Individuals can benefit from like the Bio-Heating Oil Tax Credit. A corporation would have to submit Form 500CR to benefit from this credit.
• Independent Life: If you register a new business in Maryland as an S Corporation then the most important advantage is that it will enjoy an independent life. The business entity will continue operations undisturbed even if it is faced with the death of one of its stockholders.

LLC

• Flexibility of taxation: When you register a new business in Maryland as an LLC, the choice of taxation can vary from that of a sole proprietorship, partnership, C Corporation or S corporation and thus providing great flexibility.
• Limited Liability: The owner of a Maryland LLC will be able to enjoy limited liability protection, which means creditors can sue the LLC but not the owner or investors.
• No Minutes of meetings: Unlike a corporation, an LLC startup company in Maryland will not be required to maintain any minutes of the meetings or resolutions.

Advantage#2: Business Incentives

Maryland is a state known for its pro-business climate. There are several factors responsible for creating a conducive business climate and the foremost among them are the various incentives and financing programs. A startup company in Maryland has to qualify for the incentive programs. Most of these programs are state governed although some are Federal incentive programs. Let’s take a look at a few such incentive programs:

• Maryland Enterprise Zones: If you register a new company in Maryland Enterprise Zone then your business entity can leverage from a variety of incentives and income tax credits based on new jobs created. The credit can be a maximum of $3,000 for jobs created in the first year of operation of the business.
• Job Creation Tax Credit (JCTC): This is a program that provides income tax credits to businesses established in specific regions of Maryland. A startup company in Maryland responsible for creating a minimum number of new jobs will be entitled to this tax credit. Businesses can benefit from $3,000 to $5,000 per job in tax credits especially in a “revitalization area.”
• Regional Institution Strategic Enterprise (RISE) Zone Program: If your business is located in a RISE Zone then the benefits can vary from income tax credits on capital investment to real property tax credits. The current RISE Zones are in Baltimore City, Baltimore, and Prince George’s.

If you register a new business in Maryland, there are several other incentive programs that you can benefit from including One Maryland Tax Credit, Research and Development Tax Credit, Small Business Relief Tax Credit, Maryland Economic Adjustment Fund (MEAF), Maryland Small Business Development Fund, Maryland Resource-Based Industry Financing Fund Loan (MRBIFF) among others.

Are there any Disadvantages of Incorporating in Maryland?

If you register a new company in Maryland, whether domestic or foreign, the business will enjoy benefits that aid in the overall growth process. There are but a few disadvantages although they will not have any negative effect on your business in the long run. The process of incorporation takes more time and is monitored by federal, state as well as local agencies leading to paperwork that is compliant with the regulations. As for an LLC, it can be quite difficult to raise financial capital although that problem is solved by the state based grants and loan programs.

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Once your business is registered in the state of Maryland, you can begin your operations only after you have received a proper business license or permit. At the same time, it is important to remember that not all types of businesses require a license. The options are:

• Your business may require a license
• Your business may require only a permit
• Your business may require multiple licenses or permits
• Your business may require a permit as well as a Maryland company license

Maryland Business License Requirements

You are probably surrounded by plenty of questions right now. For example, how do you find out whether your business needs a license or a permit or both? Who is responsible for issuing business license in Maryland? These are important questions and hence, we have created a guide that will help answer some of these questions.

Here is a step-by-step approach towards acquiring a Maryland company license:

Step#1: The Industry or Business Type

The state of Maryland provides business licenses and permits to different types of businesses. The type of industry or the activities of a business helps in identifying the type of business license required. At the same time, it is important to know that there are certain businesses that may require county or city clerk issued licenses instead of state licenses.

In the state of Maryland, the requirement for a permit or business license is dependent on the type of industry or services. Some of the main categories of services for which a license or permit is required are under the following:

• Alcohol Beverage or Liquor
• Slot Machines
• Chain of Retail Stores
• Scrap Metal Processor or Junk Dealer
• Peddlers or Hawkers
• Vending Machine
• Transient Vendors
• Construction
• Storage Warehouse

These are some of the categories for which statewide licenses are issued. Click here to check for other state licenses.

Step#2: Licenses issued by County

If your business type doesn’t fall under a statewide license then you will have to check with the local county office. A business license in Maryland is not always issued by the state but also by local counties in which the business is located.

Let’s take a look at an example to understand this better. If you establish a business in Cecil County, MD and the focus area of your business is home improvement then your Maryland company license will be issued by the Clerk of the Circuit Court. According to Business Regulation Article 8-101(g), home improvement businesses are those that are involved in the addition or alteration, improvement, conversion, remodeling, modernization, replacement, or repair of a building or part of a building.

Step#3: License Issuer

Who is the issuing authority for business license in Maryland? The issuing authority depends completely on the type of business and varies according to the business. The following example will help you understand how the issuing authority can vary:

You are planning to set up a restaurant in Anne Arundel County, MD then it will be classified as a Food Service Facility.

Food Service Facility

• Type of License – Food Service Facility License
• Issuing Authority – Maryland Department of Health and Mental Hygiene
• Requirements – You need to submit a Statement of Compliance with Worker’s Compensation Act along with relevant information regarding seating capacity at the facility and facility specific information to qualify for the Liquor business license in Maryland.
• Types of License – There are different types of Food Service Facility Licenses to choose from and fees vary according to the type of business license. They are: Low Priority, Moderate Priority, High Priority ,Mobile Facilities, Seasonal or Special Events and Pool Snack Bars

Alcohol Serving at Restaurant or other places

• Type of License – Alcoholic Beverage License
• Issuing Authority – Board of License Commissioners for Anne Arundel County
• Requirements – You need to submit Alcohol Awareness Certificate, Occupancy Permit, Retail Sales License, and Health Department License among others to qualify for the Liquor business license.
• Types of License – There are different types of Alcohol licenses to choose from and fees vary according to the type of business license. They are: Class A beer and light wine licenses, Class A beer, wine and liquor licenses, Class B and C Licenses, Class BD7 Licenses, Class B-BWL licenses, Special class C licenses, Class D
  Arena Licenses, Class M-G Licenses

The bottom line is that the type of business license, the issuing authority, and licensing fee will depend on the city or county where your business is registered or based.

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