One of the first things you should think about when intending to launch a business in Maryland is the structure you want to use. An easy and popular company structure is the sole proprietorship. But the real query is: Is a sole proprietorship need to be registered in Maryland?
The short answer is no, a sole proprietorship is not required to be registered in Maryland. Contrary to corporations and LLCs, which require state registration, sole proprietorships are not compelled to do so. This indicates that there are no formalities or costs associated with establishing a single proprietorship in Maryland.
However, this does not mean that you are free to function legally if you choose not to register your sole proprietorship with the state. You will still be required to pay any applicable taxes and obtain any required licenses and permits in order to run your business.
You must register your trade name with the Maryland Department of Assessments and Taxation if you run your business under a name other than your own. By doing this, you’ll be able to utilize a business name that’s distinct from your given name.
You do indeed require a registered agent in Maryland for your LLC. A registered agent is a person or organization chosen to receive legal and government correspondence on your company’s behalf, such as lawsuits and tax notices. In order to receive these documents, the registered agent must have a physical address in Maryland and be accessible during regular business hours.
You can submit an online application on the IRS website to obtain an EIN number in Maryland. Information regarding your company, including its legal name, address, and kind of organizational structure, must be provided. Your EIN number will be provided to you right away after your application has been submitted.
You must submit Articles of Organization to the Maryland Department of Assessments and Taxation in order to establish an LLC there. The $100 filing fee is payable either online or by mail. You will get a Certificate of Organization from the state if your Articles of Organization are accepted.
Creating an LLC in Maryland can take a little while, but in average, it takes the state about 1-2 weeks to process your application and give your Certificate of Organization. However, there is an extra cost for expedited processing if you require your LLC creation to be completed quickly.