LLC in Maryland: Everything You Need to Know
An LLC in Maryland is considered an alternative to the S corporation and C corporation business structures. 3 min read
LLC in Maryland
An LLC in Maryland is considered an alternative to the S corporation and C corporation business structures. This business structure is particularly popular due to its flexibility and relative lack of complexity. A few of the perks enjoyed by LLC founders and owners are pass-through taxes, limited liability, and the protection of personal assets by the law.
Starting an LLC in Maryland
In Maryland, it is both easy and affordable to form a limited liability company. Just like other states, Maryland possesses unique requirements for LLC formation. Any party interested in forming an LLC must fill out forms to register with the Maryland Department of Assessments and Taxation. Interested parties also need to pay the required fees and meet formation and naming requirements.
If you want to sell goods or services, potential customer and clients will trust your business more if you've gone through the official steps of filing to form an LLC with the state of Maryland. Formation of an LLC can give your business credibility that partnerships and sole proprietorships often don't enjoy.
Turnaround Time for Starting an LLC in Maryland
It usually takes about seven to eight weeks to process documents and filing. However, if more applications are being submitted than usual, it can take even longer than two months for your application to be processed. If you pay for the expedited processing service, you can expect your application to be processed within seven business days.
Steps in Starting an LLC in Maryland: Name Your LLC
The most important step in the process of forming an LLC in Maryland is naming your business. Many people find that the naming requirements for LLCs can be confusing.
Before you start the process of forming an LLC in Maryland, you should have a good idea of what an LLC is and whether or not an LLC will be a good business structure for your company. Therefore, you should know the definition and the advantages of an LLC.
The best way to improve your chances of having your LLC name approved is by making sure the name is distinguishable from that of other businesses in Maryland. The name also needs to include a few required words. The name you select for your business venture should be relevant and easy to search.
You can refer to the Maryland Department of Assessments and Taxation website to check the availability of your preferred name before you file an application for LLC formation.
Unlike in most other states, LLC names cannot be reserved in the state of Maryland. The name of your LLC cannot be misleadingly similar to the name of any other business in Maryland that is filed with the state's Department of Assessments and Taxation. Your LLC's name must include the words "Limited Liability Company" or an abbreviation.
Some of the restricted words for the name of an LLC are as follows:
To include these restricted words in your LLC's name, you need to fill out additional paperwork. Also, you may have to invite an individual with a professional license to join your LLC.
Any words that would cause people to confuse your LLC with a government agency are prohibited. Treasury, FBI, and Secret Service are all prohibited names for an LLC or any other business entity in Maryland.
Before you choose an LLC name, you should check whether the preferred name is available as a domain name. If it is, you should buy the domain name as soon as possible to prevent others from buying the domain name. That way, when you're ready to start building your website, you'll already have the domain name.
Not only should you consider a domain name for your LLC, but you should also consider a professional email. You can use Google Apps to get a professional email for your business. You can also get access to business-grade security, business tools, and cloud storage.
You can file an application for the formation of an LLC in person or by mail in the state of Maryland. The filing fee for the application for forming an LLC is $25. You can pay an additional $50 for expedited service.
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