Creating a Maryland LLC can be a great way to help grow your business or protect your assets. Before you start the process, take some time to familiarize yourself with the documents required and the steps necessary to form an LLC in Maryland.
File the Articles of Organization.
The first step to filing for an LLC in Maryland is to submit the Articles of Organization with the Department of Assessments and Taxation. This document declares your intention to form a limited liability company, providing important information about the business, such as its name, purpose, duration (the amount of time it will be in operation) and the names and addresses of its members. It also includes any additional clauses or provisions that you wish to include in the LLC’s bylaws.
The filing fee for the Articles of Organization is $100, and you must also include a cover letter stating contact information, the type of entity being formed (LLC) and the proposed date that you wish the LLC to be effective. After submitting your application and payment, you will receive a confirmation number. You should then wait 1-3 weeks for your LLC to receive its organizational certificate, which officially declares its formation in Maryland.
Submit the LLC’s Operating Agreement.
Once the Articles of Organization have been accepted, you must submit a copy of the LLC’s Operating Agreement. This document further outlines the rights and responsibilities of all members involved in the LLC, including how profits or losses will be distributed, methods for resolving disputes, and any other relevant regulations. The Operating Agreement can change over time and should be updated to reflect any changes in the LLC’s structure or operations.
A Maryland Operating Agreement must be signed and dated by all members of the LLC in order for it to be accepted by the State of Maryland. It must also include language that allows for a certain minimum level of tax liability and includes appropriate provisions to regulate the operations of the LLC and limit the liabilities of its members. All Maryland LLCs are required to have an Operating Agreement and it must be submitted to the State within 90 days after filing the Articles of Organization.
The Operating Agreement must include the following information: management style, member rights and responsibilities, the process of admitting new members, the capital contributions of each member, voting and appointment rights for members, indemnification policies and procedures, and applicable legal regulations. Additionally, in order to be accepted by the State of Maryland, the language of the Operating Agreement must explicitly state that all LLCs are taxable pass-through entities under > Maryland law as well as allow for liability protection under specific circumstances. Upon approval from the State of Maryland, an LLC will receive its Certificate of Formation which confirms it is officially organized and has a valid operating agreement in place.
Obtain an EIN Number from the IRS.
Once your Maryland LLC is created, you must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This unique nine-digit number identifies the LLC and helps with filing taxes, applying for a business bank account, obtaining a business license, or hiring employees. It’s important to note that only one EIN per business is allowed, so if you are forming a new company, separate from existing businesses or entities, you will need to apply for a separate EIN.
When applying for an EIN, you must have the name and address of the LLC’s registered agent on hand. The registered agent is listed in the Articles of Organization, which is a publicly available document filed with the Maryland State Department of Assessments & Taxation (SDAT). This person serves as a point of contact between businesses and government/tax agencies. You will also need to provide basic information about your Maryland LLC such as its primary business activity, type of business entity, when it was formed and where it does business. After submitting your application online or via mail, the IRS should issue an EIN within four weeks. With this number in hand, you are all set to commence conducting business in Maryland!
Once you have obtained your EIN, it is important to record this number in the LLC’s Articles of Organization. This will help ensure that SDAT has an updated record of all LLC owners and their EIN numbers. With an EIN on file with the state, Maryland’ businesses can open up a business bank account, apply for needed permits, register for taxes and submit other important information about the running of their business. An EIN is also required for all types of legal filings within Maryland and across other states as well. With an EIN in place, you are officially ready to do business!
Get a Business License and Register With Maryland State Taxation and Assessment Agencies.
Before you can start operating your Maryland LLC, you need to obtain a business license and register with the Maryland State Department of Assessments and Taxation (SDAT). You must provide proof of formation for your LLC before you can be issued a business license or register for tax purposes. Additionally, if your LLC is affiliated with any other agency, such as Alcohol and Tobacco Commission, heath care practitioner boards, local governments and more, then you may also need to submit documents or complete additional requirements.
You will complete the LLC formation application and initial report. Once approved, you will receive a certificate of good standing and your LLC will be officially formed. Once the documents are submitted to Maryland SDAT it can take 4-5 days for approval. Once approved, you can obtain a business license from your local government that is specific to the type of product or service you are providing. You must also apply with the Maryland Department of Assessments and Taxation (SDAT) to register your LLC for taxes. Along with this registration, if your LLC is engaged in any particular type of business, you may need to file additional forms such as foreign registration statement or seller’s permit application depending on your LLC’s activities.
You should also apply for an employer identification number (EIN) from the Internal Revenue Service. An EIN is used as a national taxpayer ID number, and it is important to register with this agency in order to open a business bank account, file taxes, and pay your employees. Many banks will also require you to present your EIN when opening up an LLC bank account. Additionally, registering both state and federal assets such as trademarks or copyrights can help protect your brand and identity.
Complete Any Other Required Filings or Documents in Maryland.
Depending on your LLC’s activities, you may need to submit documents or complete requirements with other agencies such as Alcohol and Tobacco Commission, health care practitioner boards, local governments, etc. Additionally, if you will be conducting business in any other states besides Maryland and locally within the state of Maryland, then your LLC may need to file additional paperwork such as a Certificate of Authority. Some LLCs may have to register with the IRS for an Employer Identification Number (EIN) before completing other registration requirements for other entities.
To ensure that you meet all of the filing requirements, contact other agencies and the IRS or visit your local office to find out how to proceed. You will need information such as the legal name of your LLC, trade name (if applicable), type of business activities being conducted, address, and members’ name(s) and home address(es). After completing any additional paperwork required by other entities, the formation process for your Maryland LLC should be complete.
Once you have met all state filing and other requirements, you are ready to operate your LLC. Many states allow for the LLC to choose the entity’s management structure (either member-managed or manager-managed). Depending on which structure you chosen and your decision whether or not to become a registered agent in your home state and appoint Officers in Maryland, additional documents may need to be filed with the state as well. After filing all relevant documents and paying any associated fees, however, your Maryland LLC should finally be ready to conduct business.
In Maryland, LLCs must also file Form 202 to create a Certificate of Formation. This document requests pertinent information concerning the company, like the name and address of the LLC, as well as its purpose and members. Additionally, the LLC needs to appoint and maintain a registered agent in the state whose responsibility is accepting service of process on behalf of the business. Lastly, although it’s not required in Maryland, some LLCs may decide to create written Operating Agreements that outline different aspects of their operations. Although these are not required to be filed with the state, they can provide tremendous value if they accurately describe how the business functions.