A sort of business entity where the owner and operator are the same person is known as a sole proprietorship. A single proprietorship is the easiest type of business to create and run in Maryland. Although there is no official state registration needed, there are still measures that must be followed to make sure your business is functioning legally.
You must first decide on a name for your company before you can establish a sole proprietorship in Maryland. The name must be original and unclaimed by another company. You must register your preferred name with the Maryland Department of Assessments and Taxation after making your decision. There is a $25 cost for this, and you may do it online or by mail.
You should get any licenses or permits necessary for your industry after registering your business name. It’s crucial to find out what’s required for your particular industry as some business kinds could call for particular licenses or permissions.
Additionally, domestication of LLCs—the process of moving an LLC from one state to another—is permitted in Maryland. You must submit an application and pay a $100 fee to the Maryland Department of Assessments and Taxation in order to do this. Your LLC will be regarded as a domestic LLC in Maryland once the application has been granted.
Professional limited liability corporations (PLLCs), which are created for licensed professionals including doctors, lawyers, and accountants, are also recognized in Maryland. The owners of these companies are protected from liability, but there are also rules and regulations that must be obeyed.
Depending on the kind of business you’re beginning, the registration fees, and the cost of getting any licenses or permissions required, the cost of starting a business in Maryland will change. In Maryland, forming a sole proprietorship typically costs less than founding other types of businesses.
In conclusion, establishing a sole proprietorship in Maryland is a pretty easy process that includes registering your business name, getting any required licenses or permits, and adhering to any particular regulations for your field. Even though there are costs involved with these procedures, starting a business in Maryland often costs less than in other states. Additionally, Maryland recognizes PLLCs for licensed professionals and permits domestication of LLCs.
In Maryland, registering a trade name normally takes 5-7 business days, provided your application is correct and complete and there are no problems that need additional investigation. The burden of the Maryland Department of Assessments and Taxation may, however, affect processing timelines.
A trade name in Maryland is the term under which a company is recognized and performs its operations. The formal name of a business entity that has been registered with the state is known as its business name, on the other hand. Therefore, the primary distinction between a trade name and a company name is that the former is used for branding, whereas the latter is the official name of the entity.