Incorporating a business is essential for entrepreneurs looking to establish their venture as a separate legal entity. By filing Articles of Incorporation, business owners in Maryland can enjoy myriad benefits, such as limited liability, tax advantages, and increased credibility. However, the incorporation process may seem daunting for many, especially those not well-versed in the legal intricacies of their state. This article is a comprehensive guide on how to file Maryland Articles of Incorporation, taking you through the necessary steps and requirements to establish your corporation successfully.
Whether you are a startup founder or a seasoned business owner, understanding the process of filing Articles of Incorporation in Maryland, popularly known as The Old Line State, is crucial for the seamless formation of your corporation. The following sections will outline the paperwork, fees, and registration procedures specific to Maryland, along with tips on navigating potential roadblocks and ensuring your application is approved. Let’s dive in and explore the ins and outs of incorporating your business in Maryland.
On this page, you’ll learn about the following:
What is Articles of Incorporation in Maryland?
The Articles of Incorporation is a legal document required to file with the state government to legalize the creation of your corporation. In other words, filing these documents with the Maryland Secretary of State ensures the formation of the corporation in Maryland officially. The Articles of Incorporation is similar to filing the Maryland LLC Articles of Organization while filing an LLC in Maryland.
Maryland, also known as The Old Line State, has some rules when it comes to file the Articles of Incorporation. We shared the step-by-step process here to file the incorporation document with the Maryland SOS. Checking with the SOS is recommended for more information.
It is always wise to consult a legal professional before you file your company under the Maryland SOS. FIling process can be easy, but it is sensitive. If you miss anything, it can totally stope the filing process.
– LLCBuddy Editorial Team
How to File Maryland Articles of Incorporation
You can file the Articles of Incorporation in several ways based on the state you are willing to start your corporation. In Maryland, you can file it in three ways, online, by mail and in-person. The details are similar to the details you need when forming an LLC. Here are the details you must submit while filing the documents-
Step 1: Get the Form and Enter the Details
The first step is to get the Articles of Incorporation form from the Maryland Secretary of State. You will get both offline and online forms on the site, as available. You must pay the $120 for filing in person and by mail when submitting the form. Following are the details you must add to your incorporation form-
Name of the Entity
The first thing you need to do is submit your company’s name. Make sure to mention the exact name of the company that you decided on. Like the LLC naming guidelines, you must also follow the Maryland corporation naming requirements too. There are a few points to note when you name your company. They are,
- You cannot have a name used by other companies or businesses.
- You cannot have any name that is misleading or the same as government organizations.
- Banks, Insurance, Insurer, or any such names cannot be used as they reflect the financial organization.
- You must add terms like corporation, limited, company, incorporated, or incorporation. You can also add abbreviations like co., ltd., inc., and corp instead of the above terms.
Address of the Corporation
The next section of the form is to provide your main address. It is necessary to have a physical street address in Maryland. For those running an online business, you must provide any address in the state (including your home address) where you will receive all the business and legal documents and mail. While sharing your address, make sure not to use abbreviations, such as N.Y. for New York or L.A. for Los Angeles.
Maryland Resident Agent
The next point is to provide information about the Resident Agent. The Maryland Resident Agent is an individual or business entity that is responsible for receiving all the legal and official documents on behalf of the company. They must be aged above 18 years and have eligibility to conduct business in the state. The Resident Agent should be legit and experienced because, in case of any lawsuit, you need an expert to handle your issues. In most cases, the Resident Agent’s official address is the company’s official mailing address. If you form an LLC, hiring a registered agent is the most crucial step in the process.
Shares and Stocks
The next important information you must provide is about the stocks and shares. While filing the Articles of Incorporation, you must mention a minimum of one share. In Maryland, to start a corporation, you need at least One director(s) initially. When filing the incorporation documents, you must provide the share of directors in the corporation. It decides the ownership of the company.
If you amend Maryland Articles of Incorporation in the future, you will not be able to change the initial directors. You might need an additional form to change the initial directors’ details. You must check with the Maryland SOS while filing the Articles of Incorporation amendment.
Additional Documents
You might need additional documents to submit along with the incorporation documents. In Maryland, you can attach a cover letter with the documents as an additional document. if you are willing to start a foreign corporation in Maryland, then you must add one document along with the Articles of Incorporation. Foreign corporations in Maryland must submit the Maryland Certificate of Status along with the incorporation documents.
Signature
Finally, the signature of the directors and shareholders are required on the form. You can have more than one share and director. All your initial directors must submit their official signature while filing the corporation in Maryland. Get their signatures to file the Articles of Incorporation.
Step 2: Submit the Articles of Incorporation in Maryland
Once you are done filling up the form, now it is time for you to submit it. The form can be submitted in three ways, online, by mail and in-person. Checking with a legal professional or a formation service while filing your corporation is recommended. It is sensitive, and one mistake can stop the entire filing process immediately.
- Online filing: Get the online form from Secretary of State, fill it up, and submit. Don’t refresh the page during the process. It will erase everything.
- Offline filing: Send the form by mail to CoState Department of Assessments and Taxation, Charter Division 301 W. Preston Street; 8th Floor, Baltimore, MD 21201-2395
Cost of Filing the Articles of Incorporation in Maryland
The cost of filing the Articles of Incorporation in Maryland is an important aspect to consider when starting a new business. This one-time fee is necessary for officially registering your corporation with the Secretary of State and can vary depending on the specific requirements and regulations of Maryland. In some cases, additional fees may be required for expedited processing or other optional services. It is crucial for entrepreneurs to budget for this expense and research the specific costs associated with their Maryland in order to ensure a smooth and successful incorporation process. To file the Articles of Incorporation in Maryland, you must pay a filing fee. The filing fee is $120 for filing in person and by mail.
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Why Maryland Articles of Incorporation is So Important
At its core, the Maryland Articles of Incorporation serve as the founding document for a company, outlining essential details such as the company’s name, purpose, registered agent, location, and the number and type of shares it is authorized to issue. These details are crucial for identifying and distinguishing the company, its owners, and its basic structure. By formalizing this information in the Articles of Incorporation, a company is able to establish itself as a legal entity separate from its owners, protecting them from personal liability and providing a clear framework for how the company operates.
Furthermore, the Maryland Articles of Incorporation also lay the groundwork for how a company will be governed and managed. By specifying the powers and responsibilities of directors, officers, and shareholders, these articles provide clarity on decision-making processes, voting rights, and the overall structure of the company’s leadership. This not only helps to prevent conflicts and disputes within the company but also ensures that everyone involved understands their roles and obligations.
Another important aspect of the Maryland Articles of Incorporation is their role in protecting the rights and interests of shareholders. By detailing the rights and privileges of each class of shares, these articles provide a level of transparency and accountability that is essential for maintaining trust and confidence among investors. This can be particularly crucial for companies seeking external funding or looking to go public, as it provides potential investors with the necessary information to make informed decisions about investing in the company.
In addition to these internal benefits, the Maryland Articles of Incorporation also serve external purposes, such as establishing the company’s identity for legal and regulatory purposes. By filing these articles with the state, a company officially becomes a legal entity recognized by the government, granting it certain rights and privileges, such as the ability to enter into contracts, sue and be sued, and secure financing. This external recognition is essential for conducting business in a legitimate and reputable manner, as it demonstrates to clients, partners, and stakeholders that the company is operating with transparency and accountability.
Overall, the Maryland Articles of Incorporation play a crucial role in the establishment and operation of a company, serving as the foundation on which a business is built. By formalizing key details, outlining governance structures, protecting shareholder rights, and establishing the company’s legal identity, these articles provide the essential framework for a company to operate successfully and thrive in the competitive business landscape. As such, any company seeking to establish itself in Maryland or looking to expand its operations in the state should prioritize the drafting and filing of its Articles of Incorporation to ensure legal compliance, operational clarity, and long-term success.
Conclusion
In conclusion, the process of filing Maryland Articles of Incorporation is a crucial step for businesses looking to establish their presence in the state. This legal document serves as the foundation of the company’s structure and outlines essential information, such as the company’s name, purpose, and management team. To ensure a smooth and successful filing process, it is vital for business owners to familiarize themselves with the State of Maryland’s requirements, adhere to the applicable laws and regulations, and provide accurate and complete information in the Articles of Incorporation.