When you decide to form a company, you get to choose between different business entity structures. Your decision will have a long-lasting effect on management, taxation, and paperwork like Articles of Organization LLC for your business.
Among the most popular choices is the limited liability company (LLC). It is highly beneficial, especially for small businesses and startups. This hybrid structure allows you to enjoy the same liability protection that a corporation offers. The owners, who are called members, will not be held personally liable for the actions of the company and the debts it may incur. At the same time, you can also get pass-through taxation.
Maryland And Articles Of Organization LLC
Choosing to start an LLC in Maryland comes with many perks. The laws in the state allow LLCs to do business that is related to their lawful business purposes, activities, and investments regardless of whether it is a for-profit company or not.
Your LLC will also have freedom and flexibility when it comes to how you will structure and operate your business. LLC members have the power to decide the provisions of the company. Additionally, LLCs do not have to appoint officers or establish a board of directors.
When it comes to record-keeping, LLCs do not need to have precise records of all transactions, accounts, and minutes of meetings. You can control the content of your records. However, it is advisable to keep accurate and detailed records to avoid unexpected issues.
Forming A Maryland LLC
While the rules for Maryland LLCs are flexible, state law still requires you to go through a registration process. It involves the filing of documents like the Articles of Organization LLC.
- LLC Name – The first thing you have to do is to choose an appropriate business name. Make sure it includes the words “limited liability company” or any of its abbreviations. If you have to use a restricted word such as “attorney,” “bank,” or “university,” you have to submit additional paperwork and have licensed individuals in the company. You also cannot use any word that could confuse your business with a state or federal agency.Aside from following the naming guidelines, Maryland also requires LLCs to have distinguishable names. To find out if the company name that you want is still available, use the Business Entity Search feature on the website of the Department of Assessment and Taxation. If you get a business filing package from a third-party organization like DoMyLLC, you can request to include a name availability search.
- Articles Of Organization LLC – Like other states, Maryland has a readily available form for business registration. To complete it, you will have to disclose the following information:
- LLC Name
- Purpose Of The Business
- Business Address
- Name And Physical Address Of The Registered Agent
The filing fee for the formation documents is $100. You can submit it to the State Department of Assessment and Taxation. The processing of mailed submission normally takes around 4 to 6 weeks. If you file in person, you can request same-day service by adding another $50. To qualify for this service, you have to be in line no later than 4:15 PM. The processing of online filings, on the other hand, takes around 7 business days.
Once your Articles of Organization LLC get approved, you will get a Certificate of Organization. It serves as proof that Maryland has recognized your LLC. If you want a certified copy of the document, you have to pay $20 plus an additional $1 per page.
You can submit the documents to the following address:
State Department of Assessments and Taxation
301 W. Preston Street; 8th Floor
Baltimore, Maryland 21201
- Registered Agent – All Maryland LLCs need a registered agent. You can appoint an individual resident who is more than 18 years old or a third-party organization authorized to transact in Maryland. The registered agent has to agree to receive all legal correspondences on behalf of your LLC. The agent should also have a physical street address in the state and an office that is open during normal business hours.After completing your LLC registration, you will have to ensure compliance with various tax and business regulations. Here are some of the things you have to remember.Your LLC has to file a Personal Property Return annually.You should submit it to the State Department of Assessment and Taxation on or before April 15 of every year. The filing costs $300. Failure to file on time may lead to penalties or bad standing with the state.Depending on your business activities, you may also need to obtain business licenses and permits. Check state, city, and local governments to see if there are any that are applicable to you. Get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). You will need it for filing taxes, hiring employees, and opening business bank accounts.You may also need to create an operating agreement to establish the operational procedures of the company. This is an internal document, so you do not have to file a copy with the state. You can also include the following information in it to avoid disagreements:
- The Percentage Of Ownership
- Management Structure
- How You Will Run The Business
- The Duties Of Each Owner And Manager
- How You Will Distribute Profits And Losses
Getting Expert Help
The preparation and filing of formation documents are only two of the steps you have to complete when starting an LLC in Maryland. If you want to learn more about business formation and filing requirements in Maryland, talk to our team at DoMyLLC.
If you are 100% sure about organizing your business, make sure that you understand the process and requirements. That may require research and proper preparation. Should you need help in handling the formation process in Maryland, contact our team of experts at DoMyLLC. We have skilled professionals who have experience in handling business filing and compliance requirements in all 50 states. Additionally, you can nominate us as your registered agent since we are authorized to transact in Maryland. You can also expect personalized solutions from us.
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