How To Form an S Corporation in Maryland

Introduction

The S corporation is one of the most popular business structures in the United States. It offers many benefits, such as limited liability protection for owners and shareholders and tax formation that can save money on corporate taxes. If your Maryland business qualifies, it’s easy to form an S corp—but before you get started, make sure you understand what this type of entity requires.

Check If your Business Name is Available

Before you can form an S corporation in Maryland, you must check if your business name is available. First, you should check with the state to see if any other businesses have already registered your preferred name. Next, it’s best to check with each county within which you plan to do business and make sure that no other companies with the same or similar names are present there as well. Finally, it’s also important to check with cities within those counties; while most cities won’t allow two distinct businesses operating under the same name (especially when they sell similar products), some do accept multiple businesses under one umbrella brand name (think Starbucks or Dunkin’ Donuts).

Appoint a Registered Agent

After you form your corporation, you’ll need to appoint a registered agent. A registered agent is a person or company that acts as the corporation’s representative (by law) and is required to be available at all times during business hours in order to receive official documents on behalf of the corporation.

The main reason why it’s important to have a registered agent is because there are many government agencies that require you to submit paperwork within specific timeframes, such as annual reports and tax forms. You can’t just ignore these filings; if they’re not submitted by their due date, your right to operate as an S corporation could be revoked! If this happens, all of your hard work would go down the drain (which would be sad).

File your Articles of Organization or Incorporation with Trademark Avenue

Once you’ve decided on a name, it’s time to file your articles of organization or incorporation. Trademark Avenue assists you in getting your articles of organization or incorporation filed.

Create an S corporation Agreement

An S corporation agreement is a document that sets out the terms of your S corporation and governs your relationship with the IRS. It’s important to get this right because it can have consequences for you, your business, and others involved in its operations.

For example, if someone who isn’t a shareholder of an S corporation acts as one (for example, by signing contracts on behalf of the company), they could be held personally liable for any debts incurred by their actions. In addition to outlining who’s liable for what debts and what happens when there are disputes over those liabilities, an S corporation agreement should also include provisions stating how much money each shareholder will contribute toward operating expenses like salaries or advertising costs (known as “draws”).

It’s important that all parties agree to these terms before establishing an S corporation; otherwise disagreements may arise down the road which could lead to legal problems later on.

Obtain the Proper Licenses, Permits or Registrations

Before you form an S corporation in Maryland, check with your local government to see if you need to register with the state or local government. Also, contact the IRS to see if a federal tax ID number is required for your business. You may also need a business license and/or other permits or registrations from your county or city.

Inform the IRS

Once you have decided to form an S corporation, go back to the first step and complete Form 2553 with the IRS. You need to file this form within 75 days of filing your articles of incorporation with the state. This is done by submitting both forms together for processing at once.

After you have completed these steps, you are now ready to enjoy all of the benefits of running a successful business but without having to worry about personal liability issues or paying corporate taxes on profits from your company.

Trademark Avenue will help you out in filling out all the required forms and applications so you do not have to contact separate resources for every step.

Takeaway:

Here’s what you need to know:

• You can form an S corporation in Maryland by filing a certificate of formation.
• To file, you’ll need to submit the certificate of formation and certain other documents at the office of the secretary of state.
• You must be able to read and understand the information contained in your business entity statutes before you begin this process.

Conclusion

After you’ve formed your S corporation and obtained the necessary licenses, permits or registrations, you can get started with your business. It’s important to keep in mind that starting an S corporation is not a quick process; it will take a few months before everything is finalized. But once you start making money, there are many benefits that come with being an S corporation. You might find that this type of structure works well for other business ventures in the future too!