How to Start a Business in Maryland
On the surface, starting a business from scratch seems like a colossal task. Despite this, Maryland sits among the most attractive places in the US for setting up a business. Not only is it home to giants such as Under Armour and GEICO, but it’s also home to thousands of small businesses, too. Fortunately, with the right approach, establishing a business in Maryland doesn’t have to be a tricky task. We’re not talking about the physical aspects like the commercial timber treatment for your premises, but rather the logistical setting up of everything. To that end, detailed below are just some of the steps to take when setting up a business in Maryland.
Create a Business Plan
First things first, the creation of a business plan is essential. This means providing an explanation of the business, detailing the findings of market research, and including the projected financials. The purpose of this is to determine how successful your business has the potential to be.
As a minimum, the explanation of the business should detail what the business does and who the target customer is set to be. Following this, market research will need to be conducted and recorded to discover more about the target market. This research is important for assessing whether there’s enough opportunity for the business idea to thrive.
Select a Business Name
In order to establish a business in Maryland, you must come up with a name that’s completely unique to the state. This means that any other business doesn’t actively register your business name in the state. To ensure you’re not breaching such restrictions, search the Maryland Secretary of State’s website for the business name you wish to register. If nothing flags up, then there’s nothing to say that you can’t register your business under that name.
Register the Business
Naturally, after checking the availability of a business name, the next logical step is to register the business. This is a legal requirement in Maryland for those who wish to do business in the state. On top of this, it’s an important move for the business itself, as a company should always protect its assets from liabilities and actions of the business. In order to register a business in Maryland, you must first decide which business entity is the most appropriate. These include a sole proprietorship or partnership, a corporation, or a Limited Liability Company.
Get Your Business EIN
EIN stands for Employer Identification Number, which is a company’s tax identification number. This is used by the federal government to identify a business, meaning it’s required to hire employees, file taxes, and carry out other important business moves. Applying for an EIN is a relatively straightforward process, consisting of an online application through the IRS.
Get the Necessary Licenses or Permits
Last but not least is the obtaining of all necessary licenses or permits. These will vary from business to business as some industries will require a license or permit to operate in Maryland. Some of these licenses or permits can be provided via specific state agencies, whereas others can be gotten from local governments. For instance, restaurants may require a food license, the selling of insurance might require a license, factories may require air quality licenses, and so on and so on. OneStop is offered by the state to help you identify which licenses and permits you require and how long it should take you to apply for them.
Of course, not every step for setting up a business is included here as it’s a complex process, and every business is unique. Despite this, these are the typical beginning steps for any business.
