Maryland, home to the Chesapeake Bay, the Baltimore Orioles, and a seemingly endless stash of blue crabs, has a lot to offer. Entrepreneurs looking to establish themselves in this mid-Atlantic state can find favorable opportunities in many different verticals, including healthcare, restaurant, construction, scientific services, and administrative support. This article will assist you if you want to understand how to start a business in Maryland.
Benefits of Maryland Business Express
The State of Maryland offers several favorable tax incentives for businesses. The One Maryland tax credit, for example, gives businesses a tax incentive to create jobs, and research and development tax credits give businesses a break from spending money on R&D.
Maryland also has more than a dozen business loan and grant programs. For example, the ExportMD program assists entrepreneurs in defraying the expenses of promoting their goods worldwide, while other awards target specialized areas such as energy and agriculture.
Maryland cost
Maryland’s low cost of business premises is also a plus. Commercial space in the state is below the national average of $ 56.53 per square foot. In most suburban areas, you can find commercial space for around $ 27 per square foot. Cities such as Bethesda and Rock Spring Park are slightly more expensive, with prices starting at $ 40 and $ 30 per square foot, respectively.
- Start an entity in Maryland
- Maryland Limited Liability Company (LLC)
- Maryland Professional Society
- Maryland Society
- Maryland Nonprofit Society
Checklist for starting a business in Maryland
- Create a business plan
- Choose a business structure
- Determine the costs of your business
- Create a business name
- Register your business and open financial accounts
Market your business in Maryland
1: create a business plan
The first step in becoming a business owner in Maryland is to write a comprehensive business plan. A business plan explains what the business is, how it will operate and the income it will generate. A strong business plan will include a list of “SMART” goals, an examination of ideal consumers, and a review of rivals. Much of the plan will cover finances, with a detailed analysis of the investments made, the investments required, and the potential for gains over time.
New business owners can seek a loan using their business plans as a financial instrument. Headway Capital offer loans and a line of credit to businesses in Maryland, which could be a source of initial liquidity. An operating agreement explains the internal workings of the business and how finances are managed. Once a business plan is complete, an operating agreement is the next smart step.
2: Choose a business structure
As the owner, you have to decide how you are going to structure your business entity. There are several types of businesses to choose from, and each has its pros and cons. The most common types of entities for small business owners and entrepreneurs are sole proprietorships, general partnerships (GPs), corporations, and limited liability companies (LLCs).
Sole proprietorships and generalists are unincorporated businesses that are free and easy to set up. Taxation is simple, but sole proprietors and general practitioners can face personal liability if something goes wrong with the business. For example, someone who sues the business can sue the owner’s personal property.
The structure of the company offers protection against liability, so if your business gets into trouble, your home, bank accounts, and other assets are protected. C corporations come with a less than ideal tax setup that taxes income once at the corporate level and again on personal income tax returns. S corporations also offer liability protection without double taxation, but they are more difficult to obtain.
A limited liability company (LLC) can be the best option of both worlds. Limited liability companies require more paperwork
3: Determine the costs of your business
When you plan to join Maryland’s 579,000 small business owners, figure out the costs of your business. A business has start-up costs, which are usually one-off visits like equipment, integration costs, and initial inventory, but there are also ongoing costs to consider. Ongoing charges are generally divided into two categories: fixed charges and variable charges. Fixed expenses are bills that don’t change like your monthly lease. Variable expenses can go up or down. A Baltimore gas and electricity energy bill can vary, for example, and so do labor costs if you hire seasonal help. Business insurance and taxes are also likely to be an ongoing cost. While the world of insurance and taxes can be confusing, the Maryland Insurance Administration has a helpful online guide, and the Maryland Comptroller provides helpful tax information.
4: Create a business name
After thinking about the names of the companies, visit Maryland Business Express to do an entity search. You need to make sure that your business name has not been adopted by another Maryland business. The state will not allow two companies to operate under the same name. In addition to checking the availability of the name, make sure it is descriptive and easy to understand. Names like Johns Hopkins Medicine and Perdue Farms, two of the state’s largest companies, have descriptive and recognizable names, for example. If you want to use a business name other than your LLC name for branding purposes, you can also file a “Do Business As” (DBA) designation with the state. LLCs and corporations often use database administrators to differentiate between different industries.
Read Also: How to Implement Digital Transformation Solutions in Your Business
For example, a bakery may have a different name for the wedding caterer. Sole proprietorships and general practitioners often find database administrators particularly valuable. This is because sole proprietorships and general practitioners are legally required to use the first and last names of their owners, such as Tim Smith or Heidi Jones. With a DBA name, you can give your sole proprietorship another brand name like Smith Video Production or Jones Lawn Care. Consider registering a business domain name and creating social accounts at this point as well.
5. Register your business and open financial accounts
To get started, you need to register the type of business you have selected and set up financial accounts. If you have selected an LLC as the type of business, you will file the articles of association with the Maryland Tax and Appraisal Department and pay a filing fee of $ 100. LLCs and corporations must also file an annual report with the Maryland Tax and Appraisal Department. State. The state of Maryland has a checklist that small business owners can refer to, or you can work with a business training company for help with both registration and reporting.
Most businesses need a Federal Employer Identification Number (EIN), which you can easily obtain from IRS.gov. An EIN is a nine-digit number that serves as a tax identification and is used to pay income tax, hire employees, and establish bank accounts. If you run your business as a sole proprietor, you have the option of using your Social Security number as your tax ID, but doing so can make you more vulnerable to identity theft. You may also need to register your business with the Maryland Tax and Appraisal Department to receive a state identification number and establish tax accounts.
Maryland Business licenses
Some Maryland entities must obtain business licenses or permits. Check out Maryland Business Express to see what is required for your business, if any. Consider opening business bank accounts to separate your personal property and your business assets. Wells Fargo, Chase Bank, and Capital One have achieved high rankings in the state’s commercial banks. Online business bank accounts are also an option.
6: Market your business in Maryland
Your marketing tactics likely depend on your target customers. However, since a large portion of the state’s population is well-to-do, consider investing in digital advertising. Research shows that 98% of high net worth customers spend at least three hours online, so creating targeted ads could be a good investment. Consider targeting smaller groups of customers with personalized ads to maximize your ad spend.
Your business also needs a social presence. Choose the channels that best match your customer demographics. Older people are turning to Facebook, the younger generation is using Instagram and Snapchat, and the business-oriented audience is on LinkedIn.
It’s also a good idea to follow useful groups on social media, such as the Maryland Small Business Development Center or the Baltimore Small Business Meetup Group. Register your business with online directories such as Google My Business and Yellow Pages to help consumers locate your business as well. This article, Small Business Marketing in Maryland, also contains some helpful tips.
Examples of Good Businesses to Start in Maryland
Maryland’s small business economy employs over one million people. While the economy is strong, you might be wondering what types of businesses could be successful in Maryland. For inspiration, the Small Business Administration (SBA) lists the following industries as the state’s top employers:
- Health and social assistance
- service professionals, scientists, and technicians
- Accommodation and food services
- Construction
- Retail business
- Administrative, support, and waste management
- Wholesale
- At the end of the line
Old Line State is a good place to start a business. The state takes a proactive approach to welcome businesses with tax incentives and subsidy programs. The cost of retail space is lower than the national average, and the state is home to wealthy consumers willing to spend the money. With all of these advantages, Maryland offers an excellent business climate for startups.
