What is the process for forming a corporation?
Forming a corporation in the state of Maryland requires several steps and is best accomplished with the assistance of an attorney to ensure all the steps are followed. The first step is to choose a corporate name that is different from any other corporate name in the State of Maryland. The chosen name must end with one of the following words: “Incorporated,” “Corporation,” “Company,” or the abbreviation “Inc.,” “Corp.”, or “Co.” The chosen name must not contain any language that is offensive or prohibited by the law. The next step is to prepare and file articles of incorporation with the Department of State. This document should include key information such as the business name, the registered agent, the purpose of the corporation, the type of stock, and the names and addresses of the incorporators. The filing fee in Maryland is $100. The third step is to prepare and file a Certificate of Authority with the Department of Assessments and Taxation. This is the document that informs the State of Maryland of the business’s purpose and authorizes the corporation to do business in Maryland. The filing fee is $25. The fourth step is to set up a corporate records book. This is a document that stores important company documents such as accounting records, corporate minutes, stockholder information, and other records. The fifth and final step is to obtain the necessary permits or licenses required by the State or Local government. This may include a business license, a sales tax ID, and a zoning permit. It is important to note that setting up a corporation is a complex task and requires the assistance of an attorney. It is highly advised to seek professional help if you are considering forming a corporation in the state of Maryland.
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