One of the first steps you must take if you intend to launch a business in Maryland is to register a business name. Because it formally recognizes your company as a distinct legal entity, safeguards your brand and identity, and makes it simpler to carry out commercial operations and create a bank account, registering your business name is crucial. The price to register a business name in Maryland, however, might differ based on the kind of business entity you select and the county where your company is based.
In Maryland, registering a business name is reasonably easy and affordable for sole proprietors and partnerships. You must submit a Trade Name Registration form to the Maryland Department of Assessments and Taxation (SDAT) in order to register a trade name (DBA) for a sole proprietorship or general partnership there. A Trade Name Registration requires a $25 filing fee and is good for five years.
The cost of registering your business name will be more if you’re thinking about starting a limited liability corporation (LLC) in Maryland than it would be for a sole proprietorship or partnership. You must file Articles of Organization with the SDAT and pay a $100 filing fee in order to establish an LLC in Maryland. If you intend to conduct business under a name other than your LLC’s legal name after it is created, you must also file a Trade Name Registration. A Trade Name Registration for an LLC requires a $25 filing fee, and the registration is good for five years.
There are advantages and disadvantages to both LLCs and sole proprietorships when deciding which to use. Compared to an LLC, a sole proprietorship is simpler and less expensive to set up, but it offers no liability protection. This implies that your personal assets may be at jeopardy if your company is sued. The liability protection provided by an LLC, on the other hand, ensures that, in the event that your company is sued, your personal assets will typically be safeguarded. But establishing an LLC might be more difficult and costly than starting a sole proprietorship.
In conclusion, any business owner operating in Maryland must take the proper steps to register their company name. Depending on the kind of company entity you select and the county where your business is located, the fee to register a business name in Maryland can change. While establishing an LLC demands a larger filing fee, registering a trade name is quite easy and inexpensive for sole proprietors and partnerships. The demands and objectives of your company will ultimately determine whether you should create an LLC or a single proprietorship.