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What you need to start an LLC

On Behalf of | Jun 7, 2024 | Business Law

Starting a Limited Liability Company (LLC) can be a smart move for entrepreneurs seeking to establish a formal business structure. It can offer both flexibility and protection. However, you must take essential steps and understand the requirements thoroughly to start an LLC

Choose a business name

The first step in forming an LLC is selecting a unique and appropriate name for your business. The name must comply with Maryland’s LLC naming rules, which generally include avoiding restricted words (e.g., “bank” or “insurance”) and ensuring the name is distinguishable from existing businesses. 

Designate a registered agent

An individual or organization assigned to accept legal papers on your LLC’s behalf is known as a registered agent. This individual or company needs to be physically located in Maryland. The relevant legal documents are delivered to you by the registered agent.

File articles of organization

To officially create your LLC, you must file Articles of Organization (sometimes called a Certificate of Formation) with the state’s business filing office. This document includes basic information about your LLC, such as its name, address, and the names of its members. There is usually a filing fee.

Create an operating agreement and get an EIN

An operating agreement outlines the management structure and operating procedures of your LLC. This agreement helps prevent misunderstandings and disputes among members. Similarly, you can get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). 

Starting a Limited Liability Company involves several critical steps that pave the way for a structured and legally compliant business. By carefully following these steps, entrepreneurs can effectively establish their LLC, providing a solid foundation for business operations and growth while enjoying the benefits of flexibility and liability protection.