Maryland Does A Sole Proprietorship Need To Be Registered?

Five steps to starting a concern in Maryland

Blog post by Andrew Griffin

Andrew Griffin is the vice president of government diplomacy at the Maryland Chamber and leads advancement efforts on behalf of the 5,500+ members of the Chamber before the Maryland General Assembly and on a federal level. He develops, leads and executes the legislative strategy of the organization and maintains the Chamber's positive working relationships with fundamental elected officials and members of the administration to build a better understanding of and appreciation for business issues.

"Nosotros're Open for Business" is the greeting you'll see on Maryland welcome signs across the land. But what does it really take to offset a business in Maryland? It'southward a flake more complicated than simply hanging upwards a sign, opening the door and counting the profits. If you're starting out, you'll need to know the basics of getting your business up and running. I'll give you a rundown of the of import get-go steps to take when deciding to open up shop and permit you in on the most important regulations to pay attention to.

Stride 1: Choose a business structure

Each of the following four nearly common structures in Maryland accept MANY more nuances and characteristics than what is described below, merely the basic differences are:

Sole proprietorship

This is the closest yous tin go to existence your own boss! That's the adept news. While it does allow the flexibility and freedom to ready your own course, information technology does have some unique factors yous need to be aware of and prepare for, if yous go that road. Under a sole proprietorship, for instance, at that place is no separation of your business assets and liabilities from your personal assets and liabilities; whatever legal obligations or debt the concern incurs,you personally incur.

Partnership

If you have someone yous want to partner with—in business organization—this will probably be the mode to go. Under a partnership, you and your partner, or partners, can make up one's mind, in varying degrees, who has how much control over the operations and who, in plough, has the most liability exposure.

There are two types of partnerships, a "express partnership" (LP), where essentially at that place is one "general" partner with the about liability—and commonly the virtually command—and i or more than "limited" partners with less liability, or less control, and—usually—less fiscal investment. Limited Liability Partnership (LLP) extends that limit of liability to each partner, protecting each from the debts of the other.

Limited Liability Company (LLC)

LLCs can be used to separate your avails and liabilities in the business from those in your personal life. As an LLC, nevertheless, you must pay a self-employment tax and you also pay into Social Security and Medicare.

Corporation

The "gramps" of businesses, there are various versions of corporations that can exist including: "C Corp," "Southward Corp," "Shut Corporation," "revenue enhancement-exempt", the listing goes on. We don't have enough fourth dimension or ink to delve likewise deeply into the unique differences of the various corporations here, but a good place to go additional information is from the United states of america Small Business Assistants or the State of Maryland.

Stride two: Register your business

One time you have figured out what form of concern you lot want, make sure yous offset the official process. You volition need to register your business with the Maryland Section of Assessments and Revenue enhancement. This volition found your official proper noun and location of your business concern, every bit well as identifying the registered agent, or the person who will formally be the one to take any service of process, should your business be sued or otherwise subject to whatever legal proceeding.

STEP 3: Check to come across if you need a let or license to operate

Many business operations may crave a specific license or let to operate legally. Your all-time source to check is the Maryland Section of Labor.

STEP 4: Pay your taxes

Two things in life are certain—and you know taxes is one of them. There are diverse taxes that a business organization could be responsible for: sales, payroll, property, etc. Make sure you're in compliance with the Maryland revenue enhancement code BEFORE you lot open up the doors! Along with the Department of Assessments and Taxation, the Office of the Comptroller of Maryland is your all-time place to start.

STEP v: Be prepare to exist an employer

Both Maryland and federal law identify a number of requirements, directives and mandates relative to your employees. Be sure to accept established your workers' compensation and liability insurance coverage earlier yous open the door. Your employees will be just that – employees–nonindependent contractors. Exist sure y'all accept your unemployment insurance provisions in place equally well.

One great source of information, direction and aid that is bachelor to anyone in Maryland looking to showtime a small business is the Maryland Small Business Development Center. Affiliated with the University of Maryland and supported by both the Maryland Section of Commerce and the U. S. Small Business organisation Administration, the MDSBDC has offices in nearly every Maryland county and tin offer a comprehensive series of services that can become you headed in the right direction for survival and growth!

Now that you're a startup, read our weblog post on labor and employment laws to consider when it comes to your employees.