Starting A Business In Maryland In 2023
You have always been the entrepreneurial type, but perhaps 2023 is the year when you have made a New Year’s resolution to establish your own business. A month has gone by, and the only progress you have made so far is enthusing to your friends at every opportunity about your great idea and how lucrative it will be. What is missing is a checklist for how to make your business official. Once you have established your company as a legal entity that can conduct business in the state of Maryland, then you can concentrate on producing and marketing your products. The decisions you make during the formative stage of your business can affect the future of the business in many ways, including but not limited to tax liabilities and preventing and resolving conflicts among business partners. A Washington DC small business lawyer can help you avoid mistakes when establishing a business in Maryland.
Put Your Plans in Writing
If you graduated from business school, you are probably an expert at writing business plans. Even if you are not, you need a written document to which you can refer when you are filling out the various forms required for the establishment of a business entity. You should list what the business does, what its target market is, and what needs it fulfills. You should also discuss its budget, including its anticipated expenses for its first year of operation.
Choose a Business Name and Business Structure, and Make Them Official
Before you register your business with the Maryland Secretary of State, check the Maryland Secretary of State website to ensure that the business name is not already in use. If it is, your business name can be similar but not identical. If someone else already has a business called Chrissy’s Crab Shack, you might have to call yours Chrissy’s Krab Shack. Before you register your business, you must choose a business structure, also known as an entity type. This is one of the most important decisions you can make, because it is almost impossible to change your entity type once the business has been established. The most popular types of business entities for small businesses are sole proprietorship, partnership, limited liability company (LLC), and corporation. Then you can apply for an employer identification number (EIN), which is a taxpayer ID number, much like a Social Security number for businesses.
Get the Necessary Licenses, Permits, and Insurance
The paperwork you need to complete before your newly formed company can begin to operate varies from one company to another, depending on which industry you are entering. At this stage, it is a good idea to meet with a small business lawyer to make sure that you are complying with all the laws.
Contact Us for Help
A Washington DC small business attorney can help you choose an entity type for your new enterprise and apply for all the permits, licenses, and insurance that you need. Contact Tobin, O’Connor & Ewing for help.