Why start a Maryland Corporation?
By choosing to incorporate your business in Maryland, you've already done what most smart business owners have done. Many companies that operate in Maryland are organized or incorporated under the laws of Maryland. The biggest reason why many individuals start a corporation is to protect them from personal liability.
A Corporation will afford you liability protection
When you operate a business with a sole proprietorship, any liability is assumed by the owner of the company. Therefore the owners personal as well as business assets are vulnerable to litigation. Incorporating your business however creates a separate entity from that of the owners or share holders and therefore the personal liability is not exposed to any litigation. Form a Maryland Corporation today.
Other advantages of forming a corporation
- Corporations have unlimited life
- The shares of the corporation are transferable
- Consult a CPA on ways to reduce taxes.
Choose a name for your Maryland corporation
The State of Maryland will not approve any name that is misleadingly similar to another LLC, Corporation, Trade Name, Limited Partnership, or Limited Liability Partnership one file with the Secretary of State. Therefore the name of the corporation will be rejected should the difference in the name should be spelling, punctuation, use of spaces, capitalization, and or the use of special characters. The corporate name must have one of the following endings: “Corporation”, “Incorporated”, “Limited”, “Inc”, “Corp”, or “Ltd”. Also, there may be some words that are regulated and require prior approval.
Maintain good standing
A Maryland corporation cannot continue to be in existence without additional input from the directors. All Maryland business entities must submit annual filing fees. Also all entities that do business must adhere to all the regulations involving the operation of a business entity in Maryland.
Maryland Secretary of State
SDAT Corporate Charter Division
301 West Preston St. 8th Floor
Baltimore, MD 21201-2395
How do I set up a company as a subchapter S corporation?
The IRS does off an additional filing to change the tax structure of the corporation. By filing for 2553 (S Corp status), you are changing the tax structure to mimic that of an LLC which has pass through taxation. Consult a CPA on what is the best option for your corporation.
| 
