What kind of business structure you will use to conduct your operations is one of the important decisions you must make if you intend to launch a business in Maryland. A limited liability company (LLC) and a single proprietorship are two of the most popular business formats. You might also have to decide whether to create a DBA or “doing business as” name. All of your inquiries about DBA, LLC, and sole proprietorship in Maryland will be addressed in this post. Which is preferable, a sole proprietorship or an LLC?
The simplest and most typical business structure is a sole proprietorship. All debts and liabilities incurred by your sole proprietorship fall exclusively on your shoulders. An LLC, on the other hand, is a distinct legal entity that offers the business owner protection from personal liability. LLCs offer greater protection and may be more appealing to potential investors, but they need more paperwork and fees to form.
In Maryland, creating an LLC costs $100. The Maryland Department of Assessments and Taxation must receive payment of this fee. The state will also require that you file Articles of Organization, which could incur additional fees. Along with the above costs, an LLC may also need to pay taxes and annual reports. The distinction between an LLC and a DBA is explained here.
DBAs, or “doing business as,” are names used by companies to conduct their operations that are distinct from their legal names. A DBA does not provide the business owner with any additional legal protections because it is not a separate legal organization. An LLC, on the other hand, is a distinct legal entity that offers the business owner protection from personal liability.
How Do I Create a DBA?
You must submit a trade name application to the Maryland Department of Assessments and Taxation in order to create a DBA there. A commercial name application must be filed for $25. You can start using your DBA name as soon as your trade name application has been granted.
In conclusion, your company’s demands and objectives will determine whether you need a DBA in Maryland. Establishing a DBA will allow your sole proprietorship to trade under a different name. However, forming an LLC can be a better choice if you want more defense against personal liability. In the end, it’s crucial to seek legal advice in order to choose the right business form for your particular circumstances.
You must submit a Trade Name Registration application to the Department of Consumer and Regulatory Affairs (DCRA) in order to register a trade name in Washington, DC. The registration fee is $55 and the application can be submitted in person or online. A copy of the formation documentation for your registered business entity as well as a copy of your business license must also be submitted. When your application is accepted, you will be given a Trade Name Registration Certificate, which will enable you to legally conduct business in Washington, DC, using the selected trade name.