LLC Baltimore MD

If you want to form an LLC in Baltimore, MD, you’ll need to know what is required for creating your LLC, which can be found in the Maryland LLC Act. While there are certain requirements in the State of Maryland for forming and operating your LLC, the state is very flexible in terms of the LLC’s powers.

Benefits of the LLC

There are several benefits to operating an LLC, which include:

• Limited liability

• Credibility

• Pass-through taxation

• Greater flexibility than other business structures

• No need to hire board of directors

• No meeting/meeting-minute requirements

In terms of limited liability, the members of the LLC generally cannot be held personally liable for the debts of the LLC. Therefore, if the LLC is sued, members’ personal assets (i.e., bank accounts, home, car, etc.) are protected. However, an exception exists if the lawsuit alleges fraud; in this case, the members’ personal assets are not protected. 

Forming an LLC provides enhanced credibility, as potential clients and customers may be more willing to do business with your LLC, as opposed to a sole proprietorship or partnership.

LLCs are considered pass-through tax entities, which means that the profits and losses of the LLC pass through to the members, who then report it on their personal tax returns. This is a great benefit since the LLC is not subject to double-taxation, as is the case with some corporations.

Another benefit of the LLC is the flexibility in terms of operations. Most state laws, including MD laws, provide great flexibility allowing members to determine how they will operate the LLC. So long as the members have a written agreement (operating agreement) in place, that agreement will be upheld in most circumstances, even if a lawsuit arises between the members of the business.

An LLC does not need to hire a board of directors to make important decisions for the business. The members themselves can make such decisions. Furthermore, an LLC is not required to hold annual meetings or record meeting minutes, as is the case with corporations.

How to Form Your Baltimore MD LLC

First, you’ll need to choose your business name. Your name must have the L.L.C. designator at the end of it. The specific naming requirements can be complex and confusing, so you’ll want to visit the State Department of Assessments and Taxation (SDAT) website to learn the requirements while also conducting a business entity search to ensure that the name you want to use is currently available for use.

Once you have chosen an available business name, you’ll need to obtain a registered agent. This is someone who will receive important legal documents on behalf of your LLC. The registered agent must be a Maryland citizen who is at least 18 years of age. The agent can be an individual, corporation, or even another LLC. The member forming the LLC can act as his or her own registered agent too.

After you have chosen your registered agent, you will complete the articles of organization and submit it to SDAT. Included in this document is your business name, principal office address, the purpose of the LLC (i.e., what type of service or goods will you be offering), registered agent name, address and signature, your signature, and a return address.

If you submit the document by mail, you can mail it to SDAT’s address at c/o Charter Division, 301 W. Preston Street, 8th Floor, Baltimore, MD 21201. It could take SDAT approximately 4-6 weeks to process everything. The fee for mailing is $100. You can also file online via the Maryland EGov Business portal.

If, however, you wish to have the process expedited, you can pay an additional $50 fee for expedited services. If you file online for expedited service, the processing time is generally seven business days. You can also request expedited same-day service by hand-delivering your documentation. 

If approved, SDAT will send you a Certificate of Organization. This document formally establishes your Baltimore, MD LLC. Once you receive this certificate, you can begin conducting business.

If you need help forming your Baltimore, MD LLC, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5-percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law, and average 14 years of legal experience, including work with, or on behalf of companies like Google, Menlo Ventures, and Airbnb.