If you want to start a business in Maryland, you might be curious about the costs associated with obtaining an EIN, forming an LLC, registering your company name, or even deciding between a sole proprietorship and an LLC. We will give you the answers to these queries in this article.
Let’s start by responding to the key query: How much does an EIN cost in Maryland? The process of obtaining an EIN is cost-free, is the answer. The Internal Revenue Service (IRS) issues an Employer Identification Number (EIN), a nine-digit number that serves as your company’s tax identification. EIN applications can be submitted online, by mail, fax, or phone. You should apply online because it is the simplest and quickest way to do so.
Let’s go on to talking about how to form an LLC in Maryland. A well-liked business structure is an LLC, or limited liability company, which offers its owners personal liability protection and various taxation options. You must submit Articles of Organization to the Maryland Department of Assessments and Taxation in order to establish an LLC there. The processing time for articles of organization is normally 7 to 10 business days, and the filing fee is $100. Online, postal, or in-person filing are all options.
Let’s now address the subject of how much it costs in Maryland to register a business name. You must submit a Trade Name Registration form to the Maryland Department of Assessments and Taxation in order to register a business name. A trade name registration requires a $25 filing fee. Online, postal, or in-person filing are all options. Remember that trademark protection does not extend to registered trade names. Consider submitting a trademark application to the United States Patent and Trademark Office if you wish to safeguard your company name.
Now we have to decide between an LLC and a sole proprietorship. Your company’s demands and objectives will determine the answer. The simplest and most uncomplicated business structure is a sole proprietorship, but its owner has no personal responsibility protection. In contrast, an LLC protects its owners from personal liability but necessitates additional paperwork and formalities. A sole proprietorship might be sufficient if your business is new and low-risk. An LLC, however, can be a better option if you wish to safeguard your private assets and have a more official business structure.
Let’s finish by talking about how to set up a sole proprietorship in Maryland. Since a sole proprietorship is not a registered business entity, no documentation is required to establish one. Nevertheless, depending on your area and sector, you might need to obtain a business license or permission. To find out the licenses and permits you require, contact your local government.
The decision between an LLC and a sole proprietorship depends on your business needs and goals, and while registering a sole proprietorship is not necessary, you may need to apply for licenses and permits. In conclusion, obtaining an EIN in Maryland is free, creating an LLC costs $100, and registering a business name costs $25. We sincerely hope that the information in this post will be useful to you as you begin your business venture in Maryland.