General Guide to Company Incorporation in Maryland
Updated on Monday 16th September 2019
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Maryland (the Old Line State) welcomes foreign investors to set up their operations in any field of interest. This American state is known for a business-friendly environment and a high number of women entrepreneurs (it ranks on the second place in the USA) and it welcomes entrepreneurs who want to expand their activities in the state's appealing industries. The general guide to company incorporation in Maryland comes to your attention with a few of the main requirements one must bear in mind at the time of registering a business in this state. To ease the formation process, you can talk to our company formation agents in USA who can help you with complete assistance and information for each of the steps involved.
What types of companies can I open in Maryland?
Limited liability companies can be easily created in Maryland, respecting a few conditions like appointing a resident agent, establishing an operating agreement, filing the certificate of formation, verifying and making a name reservation and applying for the necessary licenses and permits. Foreign investors can also create general partnerships in Maryland, a popular form of business in the state which mostly addresses to licensed professionals and which can be established by two or more partners. Corporations can also be established by investors or business persons in Maryland, and for this to happen, a local representative needs to be appointed. Sole proprietorships can also be established in Maryland, and such business form is normally chosen by those wanting to perform varied activities on their own. In matters of documents and company registration, it is recommended to have the support of a company formation agent in USA, so make sure to address your inquiries to our team and start your business sustained by our complete support.
Conditions to open an LLC in Maryland
Choosing the proper entity for several types of activities in USA will be essential for the future development of your company on the market. Small or medium businesses in Maryland can operate through the limited liability company, a suitable body which addresses to both locals and foreigners. The incorporation starts at the Business Division of the Secretary of the State of Maryland where entrepreneurs can submit the Articles of Association with information like:
- the name of the company;
- details about the owners (name, residency);
- the activities of the company;
- the business address.
Each limited liability company in Maryland must respect the name requirements meaning that it must comprise the letters L.L.C., L.C., or LLC at the end of it. A name verification must be performed before the registration process begins.
Appoint the registered agent for your business in Maryland
The registered agent for your company in Maryland is mandatory regardless of the chosen entity. This can be whether an individual or another company which will act on behalf of your business in Maryland. The main condition is to have the establishments in this state. We remind foreign entrepreneurs that our USA company formation representatives may act on behalf of your company in Maryland.
Sign an operating agreement
Another mandatory requirement for your company in Maryland is to create and sign an operating agreement, a significant document that must contain information about the ownership in the firm, the operating procedures, the financial procedures, the contributions in the business, the voting rights and details about how dissolution is made.
Apply for Employment Identification Number
EIN or the Employment Identification Number is the social security number used for tax purposes. This is issued by the IRS (Internal Revenue Service) for each kind of business entity, except sole proprietorships. Furthermore, it will be necessary when opening a bank account for your company in Maryland.
Starting a business in USA and particularly in Maryland as a foreign entrepreneur involves complete attention to all the requirements imposed by the authorities of this state. You can rely on the support and guidance offered by our team of advisors.
Taxes in Maryland
The sales tax in Maryland is set at 6% rate, the personal income tax ranges between 2% and 5.75%, and one should know that property taxes are imposed in each city of this state except the government assets. Please consider that an inheritance tax is issued in Maryland, but if you want to know more about the mandatory fees for your business, please keep in mind that an accounting firm can keep records and guide you through the tax regime for a better understanding.
Business licenses in Maryland
Licenses and permits in Maryland are available for one year and observe a wide range of activities in sectors like construction, food, trading, wholesale, retail, manufacturing, real estate, insurance. The Maryland Department of Commerce issues the necessary licenses for your firm in order to legally perform the activities in this state. We can provide you the needed support when opening a company in USA and applying for licenses and permits in Maryland.
What are regulatory licenses and permits in Maryland?
The registration for regulatory licenses and permits is made with Maryland Business Express and covers areas like building and construction, health and safety, environment and specific industries. As for the occupational and professional licenses, these are mostly needed for sole traders in Maryland who will have to apply with the Division of Occupational and Professional Licensing. Feel free to solicit support and information if you want to apply for licenses and permits for your business in Maryland.
Accounting matters for your business in Maryland
Once the company is registered in Maryland, it is important to pay attention to the accounting matters before activating on the market. Whether you want to create an accounting department in your firm or externalize such services, it is important to take care of this important financial aspect. It is a known fact that keeping the track of the financial matters in the firm is extremely important. Payrolls, bookkeeping, tax compliance and preparation, and annual financial statements are only a few of the accounting matters a company in Maryland needs. It is good to know that a business decision and further investments in the firm can be made with accurate accounting data and complete financial reports that help any kind of entrepreneur. If you are a foreign investor wanting to start a business in Maryland, we suggest you address to our local team of accountants in USA and find out more about the accounting services they can offer.
Facts and figures about business in Maryland
Entrepreneurs looking for doing business in Maryland know the excellent potential of the state and can benefit from great taxation, excellent business conditions and company incorporation that has no complicated procedures. Both men and women have successful businesses in Maryland, and the following numbers can reveal interesting information:
- Around USD 132.6 million were directed to small businesses in Maryland in 2018 through the Small Business Innovation Research Program implemented by the government;
- Approximately USD 1.1 billion in investments resulted from 81 venture capital deals in 2018 in Maryland;
- Around 15% of the business women in Maryland have companies with paid employees;
- According to the “Best States for Data Innovation” report for 2018, Maryland ranks 3rd among the American states;
- Approximately USD 63,000 is the personal income per capita in Maryland, placing the state on the 5th position.
Support offered by our company formation agents in USA
Companies in Maryland can be easily established, as there are not that complicated formalities. Nevertheless, the support and assistance of an experienced team in company incorporation in Maryland or any American state will prove helpful and essential, particularly for international entrepreneurs who need to know the business formation rules and the applicable legislation. Instead of dealing with misinterpretations when creating the company’s documents or for applying for licenses and permits, it is best to get in touch with a company formation representative in Maryland and ask for information and complete assistance. Support for obtaining the needed licenses and permits or for the needed local and state approvals in matters of business can be solicited from our experienced team in company incorporation in Maryland.
Why open a company in Maryland?
Annapolis is the capital of Maryland and an important business center that addresses to investors interested in placing their activities on the American market. Baltimore is the largest city in Maryland, followed by Rockville, Frederick, Silver Spring, Ocean City, Laurel or Gaithersburg. Being known for its rich natural resources, Marylands' economy relies on the mining field, but it also has well-explored and developed agriculture. As for the tourism sector, the ocean exits and particularly the Baltimore Port and its interesting landscapes and related activities sustain Maryland by attracting more and more visitors each year. The tax incentives and the business solutions created for small entrepreneurs encourage this branch and offer varied business opportunities in this state.
If you want to establish your business presence in the state of Maryland, please do not hesitate to contact our team of company incorporation consultants in USA.