Starting a Maryland LLC is an exciting time. Compared to other business structures, it’s relatively straightforward and cost-efficient. Follow the steps below to smoothly start an LLC in Maryland.

If you’d like reliable, fast formation, we can help. Our services not only create a Maryland LLC for you, we’ll also help you run and grow your business.

How to Start an LLC in Maryland

To file a Maryland LLC, you must file your Articles of Organization. You’ll file these with the Maryland Department of Assessments and Taxation.

But there are other important steps in the process. Following these step-by-step guidelines when starting an LLC in Maryland, helps you avoid hiccups with the legal paperwork that could delay your LLC formation. This guide breaks down each step in even greater detail, providing you with the resources needed to establish Maryland LLCs.

Step 1: Name your Maryland LLC

Choosing a business name is the first step in forming an LLC in Maryland. Don’t rush the process. You want to get it right the first time. Changing a business name later could mean redoing everything from your website to branding materials and legal paperwork. 

LLC Maryland Name Requirements

Maryland has certain requirements when it comes to naming a legally recognized LLC in the state. As you conduct your Virginia business name search and brainstorm business names, keep these guidelines in mind: 

• Maryland requires that every LLC have a unique identifying name. You can’t use the name of an existing LLC. To make sure your desired name is available, refer to our Maryland business name search page. Without a unique name, there won’t be an approval of your LLC’s Articles of Organization.
• Your business name must also include some version of “LLC” in it. To be recognized as an LLC, your business must include this label in its formal legal title. You can either use the full phrase “limited liability company” or an accepted abbreviation. Possibilities permitted in Maryland include “L.L.C.,” “LLC,” “L.C.,” or “L C” without periods.
• Some words can’t be used. Your LLC name should not include words that are misleading as to what your business does. You can find more information on what can and can’t be used on the Maryland Business Express website.

Reserve a Business Name for an LLC in Maryland

Once you’ve thought of the perfect business name, you may want to reserve it. You can do this by using our business name reservation service or by filing the State of Maryland Corporate Name Reservation Application. A filing fee must accompany the paperwork.

By securing your name, you buy yourself more time to complete the other steps needed to file the Articles of Organization. Reserving your name in advance can bring peace of mind and spare stress, knowing it’s already secured.

When you’re coming up with a business name, remember to consider whether you can secure a matching domain name so that your future website can be easily found online. We have a tool to help you do a preliminary domain name search. Our domain name registration service can help you secure the online name that will best serve your company. 

File a DBA in Maryland

Something else you may want to think about is whether you’ll want a Maryland DBA name. A DBA or “Doing Business As” name is another name that refers to your Maryland business. This is often used when a company wants to use a different name to introduce a new product line or store. 

To make sure you’re entirely in the clear with your business name, visit the United States Patent and Trademark Office website to see whether your business name or logo is federally trademarked. Trademarks can also happen at the state level. To find out more and/or apply for a state trademark, go to the Maryland Secretary of State website page for trademarks.

If your business changes after you’ve named it, you can also change your business name if needed.

Step 2: Appoint a resident agent in Maryland

A resident agent (referred to in many other states as a “registered agent”) is an individual who receives legal correspondence on behalf of a business. Designating a registered agent is a requirement for every Maryland Limited Liability Company. Your resident agent must have a permanent legal address in Maryland. 

You can’t use a P.O. box. This is because legal paperwork like lawsuits must be delivered in person. A Maryland resident agent must be available to accept such deliveries during normal business hours and then notify the LLC’s members (LLC owners). 

It might seem logical that you designate yourself or another member as the resident agent and use your residential or business address as the point of contact. While this is technically permitted, it’s a risky move. 

Hire an Outside Resident Agent Service

If you are served with some kind of legal paperwork, like a lawsuit, you don’t want this to occur at your place of business when customers or employees are present. Luckily, it’s easy and inexpensive to hire an outside resident agent service like ours. You can trust that you have a reliable person to receive legally sensitive business correspondence. Depending on the type of service you use (like ours), you can also rely on them to securely store this sensitive data.

Some additional benefits of using an outside resident agent service include:

• You can work when you’re most productive. A resident agent service will have someone available during traditional business hours, which means you can focus on growing your business whenever it works best for you.
• You won’t need to update your registered office address when your business moves. If you need to change your business location, you don’t have to update the state about your registered agent’s new address.

Step 3: File Maryland Articles of Organization

With the above steps taken care of, you can finally file Maryland Articles of Organization. Filing official government documents like this can be intimidating for many people, which is why we’re here. With our business formation plans, our professionals handle the filing for you to make sure it’s done correctly the first time. But, although we can handle this for you, we’ll show you how the process works below.

The Articles of Organization is filed with the state’s Department of Assessments and Taxation to establish your business as a recognized legal entity. You will need to provide the following details:

• The name of your LLC 
• A description of the company’s purpose 
• The address of the company in Maryland 
• The name and contact information of the company’s resident agent (the resident agent must also sign the form)
• Your signature (as the filing party) and a return address

We offer a step-by-step process on how to to file your Articles of Organization in Maryland.

Submit In-Person or by Mail to the Maryland State Department of Assessments and Taxation

The completed Articles of Organization can be filed online, by mail, or in person. Mail and in-person submissions can be made to: 

State Department of Assessments and Taxation
Charter Division
301 W. Preston Street, 8th Floor
Baltimore, MD 21201-2392 

To file online, visit the Maryland EGov Business portal.

There’s a base filing fee for filing the Maryland LLC Articles of Organization by mail. Pay this fee when you submit the paperwork. You can also opt to pay an extra fee to file online, which includes an expedited process.  If you wish, you can get a certified copy of the document for another fee. Make checks out to the State Department of Assessments and Taxation.

An updated list of fees, which may change over time, is available online. Learn more about your initial LLC costs in Maryland.

Digitally Store your Maryland LLC’s Formation Documents

If you have us file Articles of Organization for you, once the state approves your LLC in Maryland, your paperwork will be available from your ZenBusiness dashboard, where you can keep it and other important paperwork digitally organized. 

Once you get your physical paperwork back from the state approving your new LLC, you’ll want to keep it in a safe location along with your other important documents, such as your LLC operating agreement, member certificates, contracts, compliance checklists, transfer ledger, etc. We offer a customized business kit to help you keep these important documents organized and looking professional.

Want help filing your Articles of Organization? We can help. Use our fast, reliable filing service to start your LLC in Maryland. We’ll handle the heavy lifting for you, so you can get back to building your dream business. Simply click the ‘Start a Maryland LLC Today’ button above.

Step 4: Create an operating agreement

An operating agreement outlines who owns the LLC and how it will be run. Legally, you are not required to submit an operating agreement with your Articles of Organization for your Maryland Limited Liability Company. 

That said, it’s considered best practice to put such an agreement in place. This is especially true if the LLC has multiple members. The LLC operating agreement reduces the risk of future conflict. It can be referred to in case of internal disagreements. 

LLC Operating Agreement Details

These are the types of details you may include in the operating agreement:

• A list of the LLC members (owners)
• Details regarding the rights and obligations of each member
• A step-by-step process for distributing business profits
• Guidance regarding changes to the LLC, such as bringing in a new member or what happens if a member wants to leave

In addition to helping to avoid internal conflict, an operating agreement is essential if you want to bring additional investors into your business. Most people want to ensure that a business is being run smoothly and according to set guidelines before they put money into it. When you can present a potential investor with your Maryland operating agreement, they have this assurance.

An operating agreement also further distinguishes you and the other members of the Maryland LLC from the business. It helps defines you as independent owners of the business — people who are distinct from the business entity. This is important if the business gets into legal trouble.

Use our customizable template if you’re unsure how to compose an operating agreement for your LLC.

Step 5: Apply for an EIN

Apply for an Employer Identification Number (EIN), which is a nine-digit code, sort of like a Social Security number but for a company. The Internal Revenue Service (IRS) uses EINs to identify businesses. You may also see an EIN referred to as a FEIN (Federal Employer Identification Number) or FTIN (Federal Tax Identification Number).

Once your Articles of Organization and operating agreement are in place, it’s best to get an EIN for your Maryland LLC proactively. Among other things, It’s necessary if you hire employees or if you have multiple members. On top of that, there are practical benefits. For example, you can use your EIN to obtain a business bank account.

You can get your Maryland LLC’s EIN through the Internal Revenue Service website, by mail, or by fax. If you’d prefer not to deal with the IRS website we can get it for you. Our FEIN service is quick and eliminates the hassle.

Open a Business Bank Account for your Maryland LLC

Once you’ve secured an Employer Identification Number, you’ll be able to open a business bank account. Having separate accounts for your business and your personal banking is critical for sorting out your finances at tax time and helps you avoid commingling funds. Commingling funds can not only make your taxes more difficult, but it could also be used against you if someone takes you to court to challenge whether you and your LLC are truly separate entities (i.e., they want to sue you for not just your business assets, but also your personal assets).

We have partnered with LendingClub to offer a discounted bank account for your new business. This allows for unlimited transactions, online banking, a debit card, and more. When you want to authorize others in your business to use the account, we offer a banking resolution template to simplify the process.

For further help managing your new business’s finances, try ZenBusiness Money. It can help you create invoices, receive payments, transfer money, and manage clients all in one place. 

How to Create an LLC Maryland: We Can Help

We offer fast, accurate Maryland LLC formation online guaranteed. Our services provide long-term business support to help you start, run and grow your business.

If starting an LLC in Maryland feels like an uphill battle, we can reduce your stress. Let us take care of formation, compliance and more. That way, you can get back to running your dream business.