Business Registration in Maryland: From A to Z
Every new business is supposed to be legally registered by the state, so all the transactional records and the tax can be calculated accordingly. If you are looking to start a business in Maryland, you need to do some homework prior to starting an official business in Maryland. It is always better to have enough knowledge about the Maryland business laws and Maryland business registration process, so you may not find any trouble in your successful business journey. There are many business brokerage services in Maryland that may help you in this regard; however, if you can’t afford them in the beginning then you should know everything about the state laws of Maryland regarding business registration, registration fees, business name registration rules. Furthermore, it is always better to know specific rules about a bigger corporate business registration vs the small business registration in Maryland.
This guide is going to answer all of the FAQs regarding Maryland state business registration.
Do I need to Register My Business in Maryland?
Yes, you need to register your business in Maryland to operate legally and to gain the trust of your clients and all the stakeholders. If you have not registered your business yet, you may face many legal consequences. Furthermore, the whole Maryland business registration process may give you some grind to think out of the box to beat your competitors and to make a unique business name and plan to operate well in future. It eliminates all the possibilities of a duplicate name, fake legal sues and the fines of unknowingly committing any misdemeanors according to the Maryland business law.
How to Register Your Business in Maryland? Step-by-Step
Maryland small business registration starts from business name registration, business registration fees, registering against a specific type and structure of business, becoming filer and obtaining permits and licenses to be in a final state of Maryland business registration. Let’s explain each as below:
1) Maryland Business Name Registration
Registering your business name should be the most important step before starting a new business in Maryland. It should be dealt with proper brainstorming because it won’t be changed or upgraded easily. You should choose a unique and catchy business name plus you must check it on Maryland business express website to confirm that it has already been registered or not. If it is completely unique, go with a fresh name and make it register with the rules of Maryland business name registration.
2) Preparing a Solid Business Plan
Before officially applying for the whole registration, you must do a proper research about your niche and your competitor. You need to figure out your USP (unique selling point) and then you need a clear business plan. Either you should go with an individual proprietary setup or a corporate setup to scale up faster.
3) Gathering Licenses or Permits
After having a clear business plan, you need either a permit or a license to operate your own business as a proprietor or as a head of a corporate company. Remember! All of the employees that will be working under you, will also need their relevant licenses to work at a higher position.
4) Preparing a Legal Ownership Hierarchy
It is a healthy approach to make a proper hierarchy or the equity distribution model before registering your company with your partners. Every single one of the partners should be given a clear designation and an obvious share that should be documented to avoid any future misadventures.
5) Obtaining FEIN Number
While registering your new business, you need to provide your federal employer identification number for all the banking and tax filings. It is a state law about registering a new business in Maryland.
6) Paying the Filing Fee
There are some certain business registration fees in Maryland for some certain types of businesses – $100 for LLC, $120 for stock corporate business and $170 for stock corporations.
7) Obtaining Additional Permits
You may need to obtain some permits depending on the nature of your business registration in Maryland. You may be asked to provide an alarm permit, health permit, building permit, signage permit, or a zoning permit while registering your business. You can find the complete permit list on the Maryland department of revenue website.
How Much Does it Cost to Register a Business in MD?
It costs around $100-$120 while registering a new business in MD. $100 is a basic fee and then there are add-ons depending on your business type. If your company is looking to register its all shares, more than 500, the cost would be higher. These are the Maryland business registration fees that are ought to be paid once; however, to make all the tax records and the property documents, you have to bear $300 annual fee.
How Long Does it Take to Register a Business in Maryland?
On average, it takes only 5-7 days once you have filed your registration online along with all the required documents and attachments. If you have applied for registration by mail, then it may take a few weeks for an official registration declaration.
In case, you have not provided some required documents or missed anything, you may need to reinitiate the whole process. Therefore, it is always better to hire professional brokerage to deal with these legal documents. You can contact us to have our business services in this regard.
These are the business registration requirements and the steps, if you need to register your business in Maryland. You should follow all these guidelines and then start your business, so you won’t face any consequences of operating a business illegally. Your customers and reputation may become lost, if it is exposed that your business is not registered with Mryland state laws. Furthermore, you won’t be able to sell your business shares legally, if your business is not legally registered. All the businesses in Maryland are registered and they can be found on the Secretary of state website. You can check the registration status of businesses for sale in Maryland and Virginia from the state secretary website.