What kind of business structure to choose is one of the first choices you’ll need to make if you want to launch a small business in Maryland. While there are several options, the single proprietorship is one of the more common ones for new business owners.
The simplest and most plain sort of business structure is a sole proprietorship. It is solely owned and run by one person, who is liable for all business-related matters, including any debts or potential legal troubles. An instruction manual for setting up a sole proprietorship in Maryland is provided below:
Step 1: Pick a Name for Your Company You must decide on a name for your company before you can file to operate as a sole proprietorship. This name needs to be original and unclaimed by any other Maryland-based companies. You can perform a name availability search on the Maryland Business Express website.
Step 2: Declare Your Company
You must register your firm with the state of Maryland after deciding on a name. Through the Maryland Business Express website, you can complete this online. You must supply some basic information about yourself and your company, such as your name, address, and the name and location of your company.
Step 3: Obtain Any Required Licenses and Permits
Depending on the type of business you’re beginning, the state of Maryland may require that you obtain specific licenses and permits. Based on your location and industry, you can utilize the Maryland Business License Information System to discover what licenses and permits you’ll need.
Step 4: Submit Your Tax Return You must file your taxes as an individual using your personal tax return if you are a sole proprietorship. Obtaining an Employer Identification Number (EIN) from the IRS is also necessary if you intend to hire staff members or open a business bank account. How to Form an LLC in Maryland
If you determine that a sole proprietorship isn’t the best option for your company, you might want to think about creating an LLC instead. An LLC is a form of corporate structure that shields its owners from personal liability while still enabling them to manage their company in a flexible and effective way.
1. Pick a name for your LLC and use the Maryland Business Express website to see if it’s available. 2. Submit your organization’s articles of incorporation to the Maryland Department of Assessments and Taxation. This can be done by mail or online. 3. Acquire any required licenses and permits. 4. Draft an Operating Agreement that describes the organization and management of your LLC. 5. Request an EIN from the IRS. How to Change Your Business’s Name in Maryland
You must submit an Amendment to Articles of Organization or a Trade Name Registration to the Maryland Department of Assessments and Taxation if you have previously registered your business in Maryland but need to alter its name. This can be done by mail or online. Is it necessary for me to register a trading name in Maryland? A trading name is sometimes referred to in Maryland as a “trade name” or “doing business as” (DBA) name. You must register your business name as a trade name with the Maryland Department of Assessments and Taxation if you operate it under a name other than your legal name. What Does a Small Business Trade Name Mean? A firm can identify itself to the public by using a trade name. It is additionally referred to as a “fictitious name” or “DBA” name. If your company operates under the name “Green Acres Landscaping,” but your legal name is John Smith, you would need to register that name as a trade name in Maryland.
The name must be accessible and not in use by another company before you may register a trade name in Maryland. If you already have a distinctive name, you can register it with the Maryland Department of Assessments and Taxation (SDAT) by completing an application and paying a fee. Additionally, you can register your trade name with the USPTO to gain national protection for it.
A trade name is not the same as a legal name. Although it is used to conduct business, a trade name is not the legal name of the company. A sole proprietorship’s legal name in Maryland is the name of the individual owner. However, as long as it conforms with the state’s registration requirements, a sole proprietorship may elect to run its business under a trade name, often known as a “doing business as” (DBA) name.