
If you have an LLC in Maryland and want to expand your business beyond Maryland, you must form a foreign LLC. Any business, especially a limited liability company, located in other states, starts its operation in Maryland, must file a foreign LLC in Maryland. To do so, every LLC needs to file additional filing documents, along with tax and relevant documents with the Maryland government.
In this article, you’ll be reading about how to start a foreign LLC in Maryland. Along with that, the page guides you through the steps involved in managing and maintaining a foreign LLC in Maryland after you form it.
Forming a Foreign LLC in Maryland
A foreign LLC does not need to be a company from another country but a business formed under the laws of another state. If you register your LLC in one state and operate your business in Maryland, you probably need to register your LLC as a foreign entity here. Imagine, if your family owns a sushi restaurant in Alabama and you want to expand the chain somewhere in Texas, you must establish your restaurant in Texas as a foreign entity.
Anyone who has an active and in good standing LLC anywhere (except for Maryland) and wants to expand their operations in Maryland can file their LLC as a foreign entity. To start a foreign LLC in Maryland, you need to register it with the Maryland Secretary of State. Every state has a different rule for establishing a foreign LLC. Here are the steps to follow in Maryland for registering a foreign LLC.
Note: These are generic steps to file a foreign LLC in Maryland. Make sure to check with the State Secretary of State, before you start filing your business. – LLCBuddy Team
Step 1: Get the Certificate of Status From Home State
Before you proceed to register your LLC in Maryland as a foreign entity, you must get the Certificate of Status issued from your home state SOS. This is an important document to register an LLC in a foreign state.
If your LLC is originally registered in Maryland, then you must obtain the Certificate of Status from Maryland Secretary of State. If your LLC is in other states, the name of the same document might be different. Every LLC, registered in any state other than Maryland must get this document to register a foreign LLC in Maryland.
Filing Certificate of Status: To obtain the Certificate of Status for Maryland LLC, you must order the document online. On the Maryland SOS Search Business page, you must enter your business name to find the details. Once the details are shown on the page, you can apply for the Certificate of Status by clicking on the “Order Documents” tab on the bottom right of the page.
Step 2: Choose Maryland Foreign LLC Name
Obtain a name reservation certificate and submit it with your foreign qualification requirements to the Maryland Secretary of State. Your LLC’s legal name outside of Maryland will be listed on the application, along with the name it will use in Maryland. Take note of the requirements for naming your LLC.
You can use the same name as your domestic LLC name, however, that name should be available in Maryland to use. Check name availability at Maryland’s business entity names and reserve your LLC name. There are a bunch of LLC naming guidelines in Maryland when it comes to forming a foreign LLC. Check the guidelines before you name your business.
Step 3: Select Maryland Foreign LLC Registered Agent
A registered agent is a person responsible for receiving all official and legal documents on behalf of your company, whether it is located domestically or in a foreign state. For a foreign LLC in Maryland, you must have a registered agent from Maryland only. No matter where your domestic LLC is located, you must hire a registered agent from Maryland for your foreign LLC.
You’ll need a registered agent to form a foreign LLC in Maryland and take note that the Maryland Resident Agent must have a local address. Here are the best LLC services on our list that will provide you with registered agents to ease your worries:
Step 4: File Application for Registration for Maryland Foreign LLC
The most important step is to send the application for registration with Maryland SOS. Download the PDF form from the Maryland Secretary of State website or file it online (whichever method is available). The form must be filled out with the following details:
- LLC’s full legal name.
- A fictitious name or a DBA (only if your LLC’s legal name is not available); Attach a statement of adoption of the fictitious name signed by all LLC members.
- DBA filing method in Maryland: three methods, online, by mail, and in person filing.
- Online: For online filing, check the Maryland Business Express Website. There, look for the “Fictitious Names” section. You will get the registration form.
- Offline: For filing offline, you must send the downloaded PDF form or drop it off in person at the Charter Division, Department of Assessments and Taxation, 301 W. Preston Street, Room 801, Baltimore, MD 21201
- DBA filing fee in Maryland: $25 Filing Fee and $50 Expedited Fee
- LLC’s principal office and mailing addresses
- LLC formation state and date.
- Registered agent’s name and address in Maryland.
- Date when your LLC will start operations in Maryland.
- Credit card information is on the last page of the form for the application fee.
Online Filing
If you’re filing a foreign LLC in Maryland, you must Sign in to SOS portal. If you are new to the portal, create an account with your name and official email. Once you are registered to the portal, explore your dashboard. Look for the LLC formation as a foreign entity. You will get the form to register a foreign LLC in Maryland. Get the form, fill it up, and submit it along with the fee.
Offline Filling
For offline filing of a foreign LLC in Maryland, you need the PDF registration form. Download the Foreign LLC Registration Form, fill it up with the relevant and correct information about your LLC. The form must be either typed or printed before submitting it. The paper form must be sent by mail or in person drop at the address: CoState Department of Assessments and Taxation, Charter Division 301 W. Preston Street; 8th Floor, Baltimore, MD 21201-2395.
Foreign LLC Registration Fee in Maryland: The filing cost for a foreign LLC in Maryland is $100. This is a processing fee to be paid to the SOS at the time of submitting the registration form.
The LLC cost in Maryland, even for foreign LLCs will differ between online filing and by mail. Also, read about what’s the major difference between Maryland’s domestic and foreign LLCs.
Step 5: Determine How Your Maryland Foreign LLC is taxed
Foreign LLCs are also subjected to the Maryland Business Privilege Tax and must file LLC annual reports each year. If you have a single-member foreign LLC then it will be considered as a ‘disregarded LLC’ by IRS. That means the LLC will not be regarded as a company but it will be taxed as an individual (the owner). If you already have an LLC in the home state, you must have obtained the EIN as well. You don’t need to obtain the EIN in Maryland for a foreign LLC separately as it is issued from the IRS.
For other types of LLCs (member-managed or manager-managed LLCs), it will be a ‘pass-through taxation‘ where the LLCs don’t get taxed separately, instead, the members and managers are taxed based on their personal income. So, foreign LLCs are taxed as same as domestic LLCs in Maryland. However, it is recommended to check with the Maryland Secretary of State for state-wise taxes.
Note that forming a foreign LLC would be good for your business as you can legally operate in a different state thus reaching a larger market and opening more opportunities for higher profit.
Filing Maryland Foreign LLC Online – Quick Recap
- Get the Certificate of Status from your home state where your LLC is originally registered
- Check if the name of your LLC is available in Maryland to use for your foreign LLC. If not, file DBA name with Maryland SOS.
- Get a registered agent in Maryland to represent your foreign LLC in Maryland. Recommended, professional help instead of being your own registered agent.
- File the Application of Foreign LLC with the Maryland Secretary of State following the mentioned method(s) above.
- Make the processing fee.
BOI Reporting
According to the Corporate Transparency Act, every LLC (or business) has to send a BOI reporting to the Financial Crimes Enforcement Network (FinCEN). Once you establish an LLC and if it is enlisted under the list of reporting companies, you must file your BOI report in Maryland with the FinCEN.
After Forming Maryland Foreign LLC
Here are added things you need to accomplish after forming your Maryland Foreign LLC
- Obtain Business Licenses. Find the business licenses you’ll need using the Business License Search. You can contact the license office at Maryland Department of Assessments and Taxation.
- File LLC annual reports and Business Privilege Tax. You must file an Annual Report before the stipulated time frame after forming your LLC in Maryland. Here’s everything about Maryland LLC Annual Reports.
- Pay State Taxes like sales tax; you’ll need an EIN for your LLC.
FAQs
Also Read
- Alabama Foreign LLC
- Alaska Foreign LLC
- Arizona Foreign LLC
- Arkansas Foreign LLC
- California Foreign LLC
- Colorado Foreign LLC
- Connecticut Foreign LLC
- Delaware Foreign LLC
- DC Foreign LLC
- Florida Foreign LLC
- Georgia Foreign LLC
- Hawaii Foreign LLC
- Idaho Foreign LLC
- Illinois Foreign LLC
- Indiana Foreign LLC
- Iowa Foreign LLC
- Kansas Foreign LLC
- Kentucky Foreign LLC
- Louisiana Foreign LLC
- Maine Foreign LLC
- Maryland Foreign LLC
- Massachusetts Foreign LLC
- Michigan Foreign LLC
- Minnesota Foreign LLC
- Mississippi Foreign LLC
- Missouri Foreign LLC
- Montana Foreign LLC
- Nebraska Foreign LLC
- Nevada Foreign LLC
- New Hampshire Foreign LLC
- New Jersey Foreign LLC
- New Mexico Foreign LLC
- New York Foreign LLC
- North Carolina Foreign LLC
- North Dakota Foreign LLC
- Ohio Foreign LLC
- Oklahoma Foreign LLC
- Oregon Foreign LLC
- Pennsylvania Foreign LLC
- Rhode Island Foreign LLC
- South Carolina Foreign LLC
- South Dakota Foreign LLC
- Tennessee Foreign LLC
- Texas Foreign LLC
- Utah Foreign LLC
- Vermont Foreign LLC
- Virginia Foreign LLC
- Washington Foreign LLC
- West Virginia Foreign LLC
- Wisconsin Foreign LLC
- Wyoming Foreign LLC
In Conclusion
Having a foreign LLC in Maryland is nothing but expanding your business legally beyond the boundary of your domestic or home state. Starting a foreign LLC in Maryland does not require a lot of documentation or tasks. However, it is always good to seek help from a professional when it comes to running your business. From getting the Certificate of Status to hiring a registered agent in Maryland, a professional or attorney can always be a perfect help. ZenBusiness is one of the most accurate and user-friendly services that offer a bunch of LLC formation services. They offer LLC formation for $0 (excluding the state formation fee).
The cost of registering a foreign LLC in Maryland can vary depending on a range of factors. While the initial registration fees and ongoing expenses can be a significant investment, many companies find that the benefits of establishing a presence in the state outweigh the costs. By carefully considering the expenses involved and budgeting accordingly, companies can ensure that their foreign LLC in Maryland is a success.