Maryland is renowned for having a thriving business community, with both established companies and startups moving there to take advantage of the welcoming business environment. Finding a name for your company that truly represents your brand can be difficult, though, given the large number of businesses that are present in the state. Due to this, many business owners in Maryland might be persuaded to utilize a forfeited business name. But is this legal, and if so, what are the repercussions? In Maryland, is it Legal to Use a Forfeited Business Name?
The quick response is no. In Maryland, when a business is forfeited, it indicates that the state has taken away its ability to function as a result of noncompliance with state laws. As a result, other people are now able to use the company name. This does not, however, imply that you can use the name without repercussions.
According to Maryland law, a business name that has been forfeited cannot be used for five years from the date of forfeiture. This means that if you use a business name that has been forfeited, the previous owner of the name could sue you for violating their intellectual property rights. How Can I Safeguard My Business Name in Maryland? It is crucial to guard your company name against infringement if you are beginning a business in Maryland. You can accomplish this by registering your company name with the Department of Assessments and Taxation of Maryland. This will grant you sole use of the name in the state and safeguard you from legal action from anyone else who might attempt to use the name. Does an LLC in Maryland require a business license?
Yes, a business license from the state of Maryland is necessary for any companies doing business there. This covers companies, partnerships, LLCs, and single proprietorships. Each year, the license must be renewed; failing to do so could result in penalties and fines. In Maryland, how is an LLC taxed?
The tax treatment of LLCs in Maryland is that of pass-through entities, which means that the business’s gains and losses are distributed to the owners and reported on their individual tax returns. However, regardless of whether they have generated a profit or not, LLCs are also required to pay a minimum tax of $300 annually. Do I Need to Form an LLC to File Taxes?
No, an LLC is not required to submit taxes. Nevertheless, whether or not you have created an LLC, you must declare your revenue and expenses to the state of Maryland if you run a business there. Creating an LLC is not necessary for filing taxes in Maryland, but it can give more liability protection and potential tax benefits.
In conclusion, utilizing a business name that has been forfeited in Maryland is illegal and may subject you to legal consequences. Registering your company name with the state and obtaining a business license are crucial steps in protecting it. In Maryland, LLCs are subject to a minimum tax and are required to file taxes whether or not they have made a profit.
The PLLC (Professional Limited Liability Company) is accepted in Maryland. In fact, licensed professionals like doctors, lawyers, and accountants frequently choose it as their entity of choice. A PLLC protects its proprietors from responsibility while yet enabling them to keep their licenses and professional status.