Having a registered agent guarantees that the LLC is promptly informed of any legal actions or significant documents. Because the identity of the registered agent is public knowledge, many LLCs opt to use a reputable registered agent service to safeguard their anonymity.
The procedure for establishing an LLC in Maryland is rather simple. Choosing an LLC name and confirming its availability through a search of the state’s business entity database are the initial steps. The LLC must submit Articles of Organization to the Maryland Department of Assessments and Taxation after deciding on a name. The fee for submitting the LLC’s Articles of Organization is $100, and the LLC must continue to pay an additional $300 annually to keep its existence.
Business owners in Maryland might additionally need to register a trade name, commonly known as a “doing business as” (DBA) name, in addition to forming an LLC. The company utilizes this name, which differs from its official name. The business owner must submit a Trade Name Registration form to the Department of Assessments and Taxation in order to register a trade name in Maryland. The filing fee is $25.
In Maryland, there is no official registration procedure necessary for persons who want to run a sole proprietorship. To utilize a trade name, the business owner must register it with the state, nevertheless.
Although the terms “sole proprietorship” and “self-employed” are sometimes used interchangeably, they do not necessarily mean the same thing. Regardless of their business form, anyone who works for themselves is considered to be self-employed. A sole proprietorship is a form of business structure where the owner is the only employee and is personally liable for all debts and liabilities of the company.
In conclusion, you must have a registered agent if you want to form an LLC in Maryland. Although creating an LLC is a very simple process, there are expenses involved. You must register a trade name with the state if you intend to use one. Additionally, despite the absence of a formal registration procedure, sole proprietorships are nonetheless required to register any trade names they employ. As usual, seeking advice from a legal or financial expert before making any significant business decisions is advised.