Forming an LLC – Limited Liability Company in MarylandWritten by ruxandra
When you want to start a company, there are more types of companies you can choose from, including the four most common: partnership, sole proprietorship, limited liability company (LLC), and corporation. In this article, you will understand what is a Limited Liability Company (LLC) in Maryland and why forming one may be a good option for you. One or more individuals may form an LLC, but this article will be most beneficial to a single owner who wants to form an LLC, known as “member”. If you want to register an LLC in Maryland with more than one member, it is advised that all members sign an operating agreement. Your LLC lawyer from Annapolis can tell you more about this.
What is an LLC?
The Limited Liability Company is distinct from all other types of companies. Furthermore, the detailed requirements for creating or forming an LLC in Maryland are found in the Maryland LLC Act. You must know that an LLC can conduct all sorts of activities related to any lawful purpose, business, activity, or investment, whether for profit or non-profit (acting as an insurer is an exception). The law is quite flexible about the powers of an LLC and the actions it can take. For example, an LLC may be set up to run indefinitely or to stop all activities after a certain time. Also, LLC members can have a great freedom to set up their business in a way that is best for all the members.
Should I register as LLC in Maryland?
Whether you offer services or sell goods, there are many factors that have to be taken into consideration when forming an LLC in Maryland, including:
- Limited Personnel Liability – Members are not held liable for the business debts and acts of the LLC.
- Paying taxes – The income earned is considered income earned by the members.
- Credibility – Which proprietorship/ partnership may not have
- Flexibility – Members decide how the LLC will operate
- Paperwork and legal requirements for an LLC in Maryland
Your LLC attorney from Maryland can help you understand more about these factors and how they can help your business.
How to form an LLC
Your LLC lawyer from Maryland can help you form an LLC in Maryland and follow the general guidelines, including:
- Choosing a name for your LLC, which must include the words “LLC or Limited Liability Company”.
- Selecting a resident agent. Someone who receives the legal papers and documents on behalf of the LLC if it must go to court. It is important to know that the resident agent must be a citizen of Maryland over the age of 18, another Maryland LLC or corporation.
- Complete organization articles and submit them to the SDAT, including:
- The name of the LLC
- the LLC’s purpose
- The address of the LLC
- The resident agent’s name and address
- The signature of the individual forming the LLC
- The resident agent’s signature
- A return address
For more information about forming an LLC, you can contact the best LLC attorney in Maryland at (443) 569-3950 or send an email at [email protected].