5 Simple Steps To Start A Business In Maryland

“Maryland welcomes you - We’re open for business” is the greeting for investors on welcome signs across the State of Maryland. So have you ever thought of starting a business in Maryland?

The USA has a total of 50 states, and each state has its own regulations for businesses. If you are planning to open an offshore company and start a business in Maryland, please read our article for some basic tips to set up and run your business here.

Below is a checklist of the 5 simple steps to start a business in Maryland:

Welcome signs for business are across the street in Maryland

1. Choose a Business Structure

Firstly, take your time to do research and explore Maryland business structures. At this stage, take into consideration your own interests, available resources, skills, and the reasons why you wish to start a business in Maryland.

After considering these factors, you choose a legal structure that suits your business plan best. The most common structures for SMEs to start doing business in Maryland are:

• Sole Proprietorship;
• Partnership;
• Limited Liability Company (LLC);
• Corporation (S-corp, C-corp).

Each type of business structure in Maryland offers the unique advantages for businesses in terms of liability limitations, tax incentives, and financial benefits. One IBC can give you advice on choosing the best structure for your business targets.

2. Register your business entity

Once you find out the business structure that you want, One IBC will start the official process to register your company with the Maryland Department of Assessments and Taxation. When registering a company, it is important to note that your business name must be available and distinguishable from the names of other business entities already on file with the Maryland Secretary of State (Maryland SOS).

Depending on your Maryland business structure, the incorporation documents will be different. Normally, every Maryland business is required to have a local registered agent, EIN and a physical office in order to start a business in Maryland.

The processing time of incorporation for a Maryland company with One IBC is 2-3 days with the service fee starting from US$599.

One IBC can quickly set up a Maryland business with reasonable costs

3. Register and Report Taxes

The next step of starting a business in Maryland is to register and file the income tax return. All Maryland businesses are required to pay corporate income tax to the state. After registering a company in Maryland, One IBC will register an Employer Identification Number (EIN) for your business.

The corporate tax rate in Maryland is 8.25% of the net income allocable to Maryland. Some remarkable tax incentives when doing business in Maryland are:

• No gross receipts tax on manufacturers;
• No corporate franchise tax;
• No unitary tax on profits;
• No income tax on foreign dividends (if the company owns 50% or more of the subsidiary);
• No tax on intangible property;
• No separate school taxes.

In addition, the state also offers a variety of tax exemptions and credits to help new investors when starting a business in Maryland.

4. Apply for Licenses and Permits in Maryland

General Business License: Every Maryland business must obtain a general business license from the city where the business is located. In case your office is based in unincorporated areas of the state, the license will be granted by the county where your business is located.

Regulatory licenses and permits: Many business areas in Maryland are required to have subsidiary business licenses or permits, including areas such as construction, banking, health and safety, environment, and restaurant - hotels, and other specific industries or services. Obtaining these licenses and permits are compulsory when starting a business in Maryland and they are granted by state authorities.

Professional and occupational licenses: These cover people who work in specific fields, e.g. doctor, engineer, etc.

With the support from One IBC, customers can be at ease when starting a business in Maryland

5. Open a Corporate Bank Account

One of the necessary steps for starting a business in Maryland is opening a corporate bank account. For some business types, including LLCs and corporations, opening a corporate bank account will help separate the owner's personal assets from the company's money, and maintain the liability protection for business owners.

Opening a corporate bank account will also allow you to easily keep track of your company’s income and expenses. One IBC with a partner network of more than 20 big and reputable banks around the world, will support you to open a business bank account quickly.

See more: U.S. Company formation for non resident with bank account

We hope that the rundown of starting a business in Maryland checklist can give you an idea and an overview of setting up an offshore business. Please check out One IBC’s Company Formation service and have a talk with our experts.