Filing a Maryland Corporation
There are many administrative and regulatory requirements associated with filing as a Maryland Corporation. However, doing so could be quite beneficial. The Corporation structure offers numerous tax benefits to owners. It also tends to earn owner respect and credibility from customers.
Steps When Filing
Choose A Name
The first thing that new owners must do when forming a Maryland Corporation is select a name for their entity. The state of Maryland requires companies to include an indicator in their name. In this case, owners will want to add something along the lines of, “Corporation,” “Incorporated,” “Limited,” “Company,” or an appropriate abbreviation of one of those terms, such as “Inc.”
Additionally, Maryland says that the name of each company must be unique. This means that two businesses cannot share the same name. To ensure that they do not select a name already registered in the state of Maryland, owners should utilize the DoMyLLC Name Availability Check Page
Choose An Agent For Service Of Process
After choosing a name, those looking to form a business will need to select a registered agent. The registered agent is responsible for accepting all legal correspondence on behalf of the company. Many first-time owners don’t realize how integral a registered agent can be to a company’s success. It may be worth considering hiring a professional third-party company, such as DoMyLLC, to serve in the registered agent role.
File Articles Of Organization & Pay Filing Fees
Once owners have selected a name and registered agent, they can file the paperwork necessary to create their Maryland Corporation. They’ll need to submit an “Articles of Incorporation for Stock Corporation” to the Maryland State Department of Assessments and Taxation. There is a $120 filing fee when doing so, in addition to an optional $50 expedited fee. The processing times in Maryland are incredibly slow, so new owners will likely find it in their best interest to pay the additional expedite fee. Information to provide on this form includes:
- Name and address of the person completing the document
- The name of the company
- Purposes for which the Corporation is formed
- Street address of the principal office
- Name and address of the registered agent
- Amount of shares issued and par value
- The number of directors in the Corporation
- The names and addresses of such directors
- Signatures of incorporators
- Signature of resident agent
- Name and address of the filing party
File Initial Report
Businesses in Maryland are not required to file Initial Report. However, if the Maryland Corporation wishes to later expand to another state, it may need to submit such a report.
Create Corporate Bylaws, Appoint Directors And Hold Meetings
After submitting the Articles of Incorporation, members should hold an initial corporate meeting. In attendance at this meeting should be the directors who were listed on Articles of Incorporation. These directors will serve in this capacity on the board until the next annual meeting of shareholders, where directors are up for re-election.
Once in place, the board can elect officers, define the roles for the organization’s leadership, and draft corporate bylaws. Bylaws serve as an internal operating manual for the company. A Corporation cannot exist or conduct business until the board of directors has adopted bylaws. Although bylaws are private, many banks and insurers request proof of them before entering into business with a Corporation.
Issue Stock
While at the initial corporate meeting, directors will also want to issue stock and begin keeping the stock ledger. The Corporation cannot issue stock without approval from the board of directors. The board is responsible for issuing stock throughout the life cycle of the company. The amount that they can issue is defined in the Articles of Incorporation. The board will also want to keep a ledger to preserve clarity to investors and protect the corporate veil.
Obtain Employer Identification Number
The Internal Revenue Service will issue an Employer Identification Number upon request. The Maryland Corporation will need this number to file taxes, hire employees, and secure a business bank account.
File Maryland Required Annual Reports
Maryland will require the Corporation to submit an Annual Report by April 15 each year. There is a $300 filing fee associated with doing so. Officers can learn more at the DoMyLLC Maryland Annual Report page.
Ongoing Maintenance
The Maryland Corporation will need to file state and federal taxes each year. Members will also need to renew all licenses and permits annually.
How DoMyLLC Can Assist With Streamlining The Process
At DoMyLLC, we offer streamlined administrative solutions. No matter where you are in the stage of forming your Maryland Corporation, we can help. Our services include:
- Name availability check
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Secretary of Maryland’s office
- Provide sample bylaws, meeting notices and minutes for meetings
- Dedicated account manager
- Unlimited customer support
When registering a company, it’s critical that you get things right the first time. Contact us today to learn more about how we can help.