Maryland is a great state to start a business. With big-name companies headquartered in Maryland, and thousands of other small businesses, there are many reasons to start a business in Maryland. But before you sign anything or start selling a single product or service, take a look at these five things you should know about starting a business in Maryland.
Write a Business Plan
Before you start the process of setting up your business, make sure to create a comprehensive business plan. Doing so will not only help you flush out your ideas to see how they will work but also help you see if your business has enough potential and makes financial sense. When creating your business plan, include things like:
- An explanation of your business
- Market analysis
- Organization and management
- Marketing and sales
- Financial projections
Choose a Business Structure
There are multiple ways to structure your business: sole proprietorship, partnership, limited liability company (LLC), and corporation. Each of these business structures has its benefits. The simplest way to structure a business is via a sole proprietorship, while the most complex way to structure a business is via a corporation. Talking to a business lawyer about your business will help you best understand the difference between the various types of business structures, as well as help you choose the right one for your business.
Register Your Business
Once you have figured out what your business is going to be and chosen a business structure, it is time to register your business with the Maryland Department of Assessments and Taxation. Registering your business will establish your official name and location of the business as well as formally identify the registered agent. The registered agent is the point of contact for the business.
Obtain Necessary Permits or Licenses
There are multiple permits or licenses your business will likely need to operate in Maryland. If you plan on selling goods in Maryland, you must obtain a sales and tax license with the Comptroller of Maryland. If your business has employees or is taxed separately from you. You must obtain a federal Employer Identification Number (EIN) from the IRS. There are also regulatory licenses and permits, as well as professional and occupational licenses. Working closely with a Maryland business attorney will ensure that you get all the required permits or licenses for your business.
Open a Bank Account
No matter what type of business you form, you should consider opening a separate business bank account to make it easier with tracking income and expenses. Opening a separate business bank account allows you to keep a legal separation between your personal assets and liabilities and those of the business. Every business owner should open a separate business bank account, no matter how the business is structured.
Start Your Business Right with DK Rus
DK Rus has been helping people start and grow their businesses for over 25 years. As a business lawyer in Maryland, we know the ins and outs of Maryland rules and regulations for starting a business, and will ensure that yours is set up correctly according to Maryland law. Contact us today to learn more.