With a bevy of nicknames that include the Old Line State, Free State, and Little America, this week our 50 states series focuses on what it means to incorporate in Maryland. Ranking at number 18 on the Forbes best states for business list, Maryland may be noted for holding the second highest costs for labor in the United States, but is considered one of the most educated workforces to join in the country and also home to the headquarters for the Ritz-Carlton Hotel Company, JW Marriott Hotels, and Johns Hopkins University.
On a small business friendliness scale, Maryland has a C in overall friendliness from Thumbtack.com and stays on a fairly level B rating for the ease of starting a business and regulations pertaining to health and safety, employment, labor and hiring, and tax code with the cost of doing business in Maryland holding at 9.9%.
Economic activity within the state is predominantly centered in three different areas – the tertiary service sector (the Port of Baltimore especially for its rail and trucking access), food production particularly where commercial fishing is concerned, and work for the defense and aerospace industries due to the proximity of Maryland to the government within Washington, D.C.
Feel like you’re ready to form an LLC or incorporate in Maryland? Here are a few extra tips to keep in mind before doing so.
- Planning to open a retail or wholesale shop? You’ll need to make sure you have a State of Maryland business license if you plan on buying or reselling anything first. A fairly handy FAQ guide from the state on business licenses can be found at BLIS, Maryland’s Business License Information System.
- Articles of Incorporation must be prepared and filed. For Maryland LLCs, registered agents must be appointed and must also sign the Articles of Organization. They may be any Maryland citizen who is over the age of 18 and has a permanent address in the state. Additionally, if the business has an in-state address, the RA can be a Maryland Corporation or LLC.
- For LLCs and Corporations alike, filings are usually completed within 3 weeks at the state level.
- If your LLC is outside of Maryland and you’d like to do business in the state, you must contact the Maryland Department of Assessments and Taxation and register by filing a Foreign Limited Liability Company registration form with an additional fee payment.
All set to form an LLC or incorporate in Maryland? Still have questions? Give us a call at 1-(877) 692-6772, or leave a comment below and we’ll help you out!