
Introduction
Starting a business
is an exciting and challenging undertaking. To help ensure your
business' success, it is important that you familiarize yourself
with the basic requirements for starting a business in Maryland.
The following checklist provides a convenient starting point.
| NOTE:
This pamphlet is not intended to be comprehensive and should
not be used as the sole reference when starting a business.
Regulations and other legal requirements change constantly
and there may be some obligations for your specific business
activity this pamphlet does not cover. We strongly
suggest you consult an attorney, accountant or other professional.
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For
All Businesses
Select
Your Business Structure
The first step in establishing a business in the State of Maryland
is to determine which form of business structure is most appropriate
for your operations. The four most common forms of business structure
are the sole proprietorship, partnership, corporation and limited
liability company. Each structure has certain advantages and disadvantages
that should be considered. Choosing the appropriate organizational
structure for your business is one of the most important decisions
made and may require advice from an attorney, accountant and other
professional advisor.
Once you have
chosen a structure for your business, the next step is to complete
the necessary registration requirements.
Create Your Business Structure
Sole
Proprietorships, General Partnerships
Sole proprietorships or general partnerships require no legal entry
formalities except compliance with State and local licensing and
taxation requirements.
Legal Entities (Corporations, Limited Liability Companies,
Limited Partnerships, and Limited Liability Partnerships)
For information about registration requirements for legal entities,
contact:
State Department of Assessments
and Taxation
Corporate Charter Division
301 West Preston Street, 8th Floor
Baltimore, MD 21201
Telephone: (410) 767-1340
http://www.dat.state.md.us
Select
and Register Your Business Name
Naming the business is a critical step. You can select a business
name yourself, or you can hire a professional to do the search on
availability and file the necessary forms.
For information
on trade name availability and forms contact:
State Department
of Assessments and Taxation
Trade Name Search and Registration
301 West Preston Street
Baltimore, MD 21201
Telephone: (410) 767-1340
www.dat.state.md.us
For information
on corporate name availability and forms, contact:
State Department of Assessments
and Taxation
Corporate Name Availability
Search
301 West Preston Street
Baltimore, MD 21201
Telephone: (410) 767-1340
www.dat.state.md.us
Obtain
Personal Property Tax Information Personal
Property and Local Taxation Requirements
In Maryland, businesses must pay an annual tax based on the value
of their personal property (furniture, fixtures, tools, machinery,
equipment, etc.). The Department of Assessments and Taxation administers
the valuation process while the counties and towns collect the tax
based on the location of the property.
The Department automatically registers corporations, limited liability
companies, limited partnerships, and limited liability partnerships
for this tax when these legal entities form. All other businesses
(sole proprietorships, general partnerships) that own or lease personal
property or need a business license are required to: 1) obtain an
identification number by registering with the Department of Assessments
and Taxation, and 2) file an annual personal property return. For
information regarding personal property assessments contact:
State Department
of Assessments and Taxation
Personal Property Division
301 West Preston Street
Baltimore, MD 21201
Telephone - sole proprietors, general
partnerships: (410) 767-4991
Telephone - legal entities: (410)
767-1170
www.dat.state.md.us
Register a trade name
You may register a "trade
name" with the Department of Assessments and Taxation.
A trade name, is the name by which a business is known to the public
to distinguish it from another business or person.
For
information on trade name availability and forms contact:
State Department
of Assessments and Taxation
Trade Name Search and Registration
301 West Preston Street
Baltimore, MD 21201
Telephone: (410) 767-1340
www.dat.state.md.us
You may register
a "trademark" with the Secretary of State's
office. A trademark is a unique graphic symbol or logo associated
with a business, which distinguishes it from another business or
person.
For more information on trademark registration contact:
Trademark Division
Office of the Secretary of State
State House
Annapolis, MD 21401
www.sos.state.md.us
Obtain
Federal, State, County, and Local Tax Information
Taxation:
Maryland's One-Stop State Tax Registration
All businesses must fulfill their tax obligations to the federal
government and the State of Maryland. To help determine the taxes
for which your business will be liable, complete Maryland's Combined
Registration Application.
The Combined
Registration Application can be submitted on line from
the Comptroller's web site.
For additional
information on obtaining and completing the Combined Registration
Application, contact:
Taxpayer
Registration Assistance Center
Comptroller of the Treasury
301 West Preston Street, Rm. 206
Baltimore, MD 21201
Telephone: (410) 767-1300
http://www.comp.state.md.us
Other local
taxes in Maryland require no additional registration. If you have
questions about county and local taxes, contact the County Finance
or Treasurer's Office for the county where the business will be
located.
Federal Taxation Requirements-Internal Revenue Service
New businesses should contact the Internal Revenue Service (IRS)
to register for: an employer identification number; income tax-
business and employee withholding; social security; federal unemployment
insurance; and other federal taxes.
The IRS provides business kits for three types of businesses: sole
proprietorships, partnerships and corporations. For additional information,
contact:
Internal Revenue Service
31 Hopkins Plaza
Baltimore, MD 21201
Telephone: (410) 962-2590
Toll-free: (800) 829-1040
http://www.irs.gov/
Check
County and Local Zoning Requirements
Be sure you choose a location properly zoned for your business activity.
Other factors to consider include regulations on business signs
and parking at the location.
If you are planning
to operate a business from home, you will need to consider whether
your community or county restrict home-based businesses.
To obtain more
information on local zoning and building requirements, contact the
planning and zoning department in the county in which your business
will be located.
Check
State and Local License Requirements Business
Licenses
A State of Maryland Business License is required for most businesses,
including retailers and wholesalers. A traders license is required
for buying and re-selling. Business activities that require licenses
include, but are not limited to: amusements; auctions; chain stores;
construction; dry cleaners; farm machinery; garages; hawkers and
peddlers; junk dealers; plumbing and gas fitters; restaurants; retail
stores; storage warehouses; traders; and, vending machines. To determine
whether your particular business activity requires licensing by
the State, and needs to have any additional licenses and permits,
contact the Clerk of the Circuit Court in the county in which your
business will be located.
Jurisdictions
with municipal corporations may require a license for businesses
operating within their corporate limits. If your business is located
in a municipal corporation, check with your municipal offices to
see if a local business license is required.
You can get
more information on State and local business licenses from the Department
of Business and Economic Development's Business
Licensing and Information System
Obtain
and complete Application for Maryland Business License
Applications
for the Maryland business license may be obtained from the Clerk
of the Circuit Court in the county in which your business
will be located.
Regulatory Licenses:
Department
of Labor, Licensing and Regulation
The Department of Labor, Licensing and Regulation is a major occupational
and professional licensing agency in the State of Maryland. The
Department is also responsible for the enforcement of commerce,
employment, and workplace and public safety laws.
Division
of Occupational and Professional Licensing (888) 218-5925
The Department's Division of Occupational and Professional Licensing
regulates many business occupations and professions. Individuals
working in the following areas need to obtain occupational or
professional licenses in addition to State and local business
licenses:
- Architects
- Barbers
- Bay Pilots
- Certified
Public Accountants
- Cosmetologists
- Master
Electricians
- Examining
Engineers
- Foresters
- Heating
Ventilation, Air Conditioning and Refrigeration
- Home Improvement
Contractors and Sales
- Interior
Designers
- Landscape
Architects
- Office
of Cemetery Oversight
- Professional
Engineers
- Professional
Land Surveyors
- Plumbers
- Real Estate
Appraisers
- Real Estate
Brokers and Sales
- Secondhand
Precious Metal Object Dealers and Pawnbrokers
- Sports
Agents
- Members
of the Boxing, Kickboxing and Wrestling Industry
For most occupations
and professions, individuals must meet educational and work experience
standards as well as pass a qualifying examination in order to obtain
a license.
Division
of Employment and Training (410) 767-2400
The Division
of Employment and Training is responsible for the administration
of the unemployment insurance laws. New businesses are required
to pay unemployment insurance taxes and should contact the Division
to establish an account.
Division
of Labor and Industry (410) 767-2236
The Division
of Labor and Industry protects and promotes the health, safety and
employment rights of Maryland citizens. The Division administers
laws governing these areas (the underlined laws require licensing):
- Maryland
Occupational Safety and Health
- Wage Payment
- Employment
of Minors
- Prevailing
Wage
- Amusement
Ride Safety
- Boiler, Pressure
Vessel, Elevator and Escalator Safety
- Employment
Agencies
- Farm Labor
Contractor Registration
Division
of Financial Regulation (410) 230-6100
The Division
of Financial Regulation regulates and, in many instances, licenses,
the operation of banks, credit unions, consumer loan companies,
sales finance companies, mortgage companies, and collection agencies.
Maryland Department of Labor, Licensing and Regulation
500 N. Calvert Street
Baltimore, Maryland 21202
Telephone: (410) 230-6000
http://www.dllr.state.md.us
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