How to Create a Maryland LLC

How to Start an LLC in Maryland: 7 Steps

1. Naming Your LLC:

   • Follow Maryland state naming guidelines.

   • Must include "Limited Liability Company" or "LLC."

   • Cannot use certain words like "Association" or "Corporation."

   • Must be distinguishable from existing business names.

   • Check availability through Maryland Business Express.

2. Hiring a Registered Agent:

   • Responsible for sending/receiving legal documents.

   • Can be an individual, corporation, LLC, or registered agent service.

   • Recommended not to be your own registered agent for privacy reasons.

3. Filing Maryland LLC Articles of Organization:

   • File with the Department of Assessments and Taxation.

   • Filing fee: $100.

   • Decide on management structure: member-managed or manager-managed.

4. Creating an Operating Agreement:

   • Not required but highly recommended.

   • Outlines ownership and operating procedures.

   • Includes organization structure, management, voting structure, etc.

5. Getting Your EIN (Employer Identification Number):

   • Essential for IRS identification and tax purposes.

   • Needed for opening a business bank account and hiring employees.

   • Can be obtained online for free.

6. Obtaining Additional Permits or Licensing:

   • Research state, local, and federal laws for business permits and licenses.

   • Depends on the type of business.

7. Recommended Steps After LLC Formation:

   • Open a business bank account to separate personal and business assets.

   • Consider getting a business credit card for points and rewards.

   • Hire an accountant for tax purposes.

   • Check if a Maryland seller's permit is required.

   • Sign up for employer taxes if hiring employees.

   • File annual income reports with the IRS and Maryland.