Limited Liability Company (LLC) in Maryland

The limited liability company (LLC) is a popular choice of business entity, especially for business partners in Maryland. In a traditional partnership, the general partners are all personally liable for the debts and actions of the business. On the other hand, a corporation shields owners from liability but results in double taxation and has many formal requirements to maintain the corporation. A Limited Liability Company (LLC) essentially combines the liability shelters of a corporation with the pass-through taxation of a partnership, making it a beneficial entity for many small business owners. In addition the formal requirements to form an LLC are relatively few.

Forming a Limited Liability Company (LLC)

While forming an LLC is nowhere near as complex as incorporation, there are still steps you need to take to form your LLC and ensure compliance with all Maryland business laws. The following are some steps in the process of forming an LLC and our law firm can guide you through this process:

Name Your LLC – You must select a name for your LLC and you must first search the Maryland Department of Assessments and Taxation, as your name cannot be too similar to that of an LLC that is already registered with the state. In addition, your name must include “LLC” or something similar to identify the entity as a limited liability company.

File the Articles of Organization – The Articles of Organization is a relatively straightforward document that must include the following information:

Name of your LLC;
Purpose of the LLC;
Address of the LLC;
Contact information for the registered agent (see below).

This is the document you file with the Maryland Department of Assessments and Taxation with a filing fee of about $100.

Designate a Registered Agent – You must choose an individual or a company to serve as the registered agent for the business and you must provide their name, phone number, and address.

Draft an Operating Agreement – The state does not require that that your LLC have an operating agreement, however, having a well-drafted agreement between owners can set out guidelines for roles in the LLC, operational matters, and conflict resolution should a dispute arise. A well-planned operating agreement can greatly assist in the smooth operations of your LLC.

Comply With Tax and Business Laws – Once you LLC is formed, you want to ensure that you comply with all licensing and permit requirements, employment laws, tax laws, and other legal requirements for a business in Maryland.

Contact a Baltimore Business Attorney for Assistance Today

At The Casper Firm, we have the skill and knowledge to help you through every necessary step of properly forming your LLC and complying with all laws and regulations in Maryland. If you wonder whether an LLC is right for you or need assistance forming your LLC, please call our office at 888-387-3878 for a free consultation with a business lawyer.