Selecting the Maryland Corporation or LLC Name
When selecting a name for your Maryland corporation or LLC, it should be remembered that the name will be unique and will identify you as a separate entity transacting business in the state. The name of a corporation must end with “Incorporated,” “Corporation,” “Corp” or “Inc.”. When developing a name for a limited liability company it must end with “Limited Liability Company” or “LLC”.
The name will not be accepted if it is likely to mislead the public or if it too closely resembles the name of another corporation or LLC formed in Maryland.
Guidelines require that you do not use any type of punctuation such as dashes, periods or commas in name selection. It is to your advantage to try to name your corporation or LLC so that it identifies with the goods or services you provide, but this is not required.
Selecting a Board of Directors
Maryland based corporations can have several members as director but is only required to have one member if there is only one shareholder. If there is more than one shareholder, there must be a corresponding director for each shareholder up to a minimum of three. Since the board of directors is responsible for managing the corporation, it is suggested that the board be comprised of individuals that are officers or shareholders who have some type of daily involvement with the corporation. Maryland has no minimum age requirements for a director.
Corporations are expected to file the Maryland Corporate Income Tax return, Form MD 500 or MD 510 annually, whether a “C” or “S” corporation. The amount of tax is dependent on a number of factors and there is no minimum tax.
An LLC within Maryland is required to file as either a corporation or a partnership dependent on the election made on the SS-4. Maryland maintains an individual income tax so employers are expected to withhold state income tax. Maryland maintains a sales and use tax ranging from 5% to 11%.
The registered agent must have a physical street address within Maryland state. PO boxes are not acceptable, within Maryland.