A Maryland Limited Liability Company (LLC) can be set up in either the state or on the local level. Most people choose to have their LLC filed in the state because it is easier to obtain licenses at that point and most business licenses are easier to obtain as well. However, there are some pros and cons of having an LLC rather than a full fledged corporation.
Filing electronically via the internet or by mail is easier with maryland llcs than in many other states. File the necessary documents via the internet (Requires a Maryland Business Exchange account) or via postal mail. The filing fees are usually only $100, but there's also an additional 3 percent service charge for electronic filings.
Your maryland llc Articles of Organization needs to provide the following basic information: the name of the LLC, its address, and a phone number where you can be reached. There is also a specific operating agreement that will cover how your LLC is to be run and who may make decisions for the business. Operating agreement documents are filed with the Maryland Corporations Control Commission. Here, the LLC owners must agree on all matters including their personal assets and liabilities, management of LLC funds, and other important issues. A complete Operating Agreement is not required for a simple, three or four people limited liability company.
Maryland Limited Liability Company
You do not need to have a separate office for your LLC if you are only using one building or property as your business entity. However, you must ensure that your office is separate from your personal residence. The offices of a Maryland limited liability company are also known as agents' offices. These are the places where all your official correspondences go. For instance, mail, faxes and phone calls to your LLC are sent here.
Many Maryland business entities are formed by using an existing company. In such cases, it is important that you get yourself appointed as the Limited Liability Company's General Manager. As a General Manager, you would be in charge of the entire company's activities, which include managing the business assets, collecting the payment and reporting it to the LLC. Although there are some specific operating procedures to follow in each state when it comes to limited liability companies, these procedures are different in Maryland. If you want to incorporate your LLC, you need to follow the applicable state laws.
One important point that you need to understand about a Maryland limited liability company is that it is never considered as a real estate investment. Even though you can incorporate your LLC, it will never result in any real estate or asset acquisition unless you appoint a Board of Directors. Any member of the LLC may be a legal or account owner, depending on the nature of his or her contributions. The members of the LLC are only allowed to make sales within the LLC itself. So, even if one member leaves the LLC and wants to buy or sell some properties, all transactions made thereafter still require the consent of all other LLC members.
There are some other requirements that are specific to Maryland LLCs. For instance, the LLC must include a registered agent, who must be either a resident of the state or a legal representative of the LLC. The registered agent must file all federal and state documents, with copies going to the Maryland State Board for Public Records. The other important documents to file in Maryland are the Articles of Organization and the Operating Agreement, both of which must be filed with the Maryland Society of Business Registration agents.
Filing an annual business report is another requirement in Maryland. You have to send out this report to the corporate headquarters and to the shareholders at least once a year, unless you opt for quarterly reports. If you own real estate in Maryland and have created or purchased any personal property there, you have to file a property return, which lists every sale of such property and its cost. The real estate property returns should also include copies of other relevant papers, such as deeds of trust, tax returns, and other papers related to the transfer of ownership of the property.
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