Incorporating a business in Maryland
If someone is considering starting a business, they may choose to form a corporation. This is actually a fairly simple process, most of which hinges on filling out and submitting articles of incorporation with the state and paying a processing fee, which ranges from $100 to $800.
The first step in incorporating a business is to choose a name. It must not violate any trademarks, and it must not be the same as any other corporation in the state. Additionally, the business’s name must indicate that it is a corporation, which is generally done by ending the name with Corporation, Limited or Incorporated. A name does not need to be registered with the state because that will be done so automatically when articles of incorporation are filed.
The next step is to appoint directors and create corporate bylaws. Many business owners will appoint themselves as a director, but the role can be given to anyone who is in charge of making decisions for the company. Creation of bylaws is not generally necessary for filing articles of incorporation, but they are important for determining how a business will be run. Bylaws generally determine how important decisions will be made and outline voting rights.
Once someone has established their
new business with the state, they should also determine what their legal obligations are. Different industries have different laws associated with them, and it is important that business owners understand all of the regulations that apply to them. A business attorney may be able to help someone with understanding the legal implications of running their business.
