Are you finally going to start your dream business in Maryland? If so, there are a few things you should take care of before starting your business, like thinking of a name and registering your business.
Many entrepreneurs start by brainstorming the right name for their small enterprise but end up changing the name because it is already taken. So, before you go and make the same mistake, you might want to do a quick name search first.
We will explain everything you need to know about doing a business name search in Maryland and provide some tips and information to get your business off the ground.
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How to check business name availability in Maryland
In most states, including the state of Maryland, you cannot just pick any name. Even if it is the best name you can come up with, you need to check if it is still up for grabs. No two businesses can have the same name, so you want to check for its availability first. And here is how:
1. Visit the Maryland Secretary of State website
To check if the business name you thought of is available in Maryland, you need to visit the Maryland Secretary of State website and use the name search tool.
2. Type in your small business name
Type the name you thought of to see if it’s already in use. The search allows you to look for a business name or department ID, but you’ll focus on the business name.
3. Run the search
To run the search, simply type the keywords or the name you like and press enter. If there are no matches, then the name is free for you to use. However, if any results show up, and it is an exact match with your search term, you will need to choose a different name.
4. Consider reserving a name
After running a Maryland business name search, you have two options: You can reserve a name or you can register the name. You should reserve a name if you aren’t planning to set up the business immediately.
Maryland allows business owners to reserve a name for 30 days for $25 with an additional $20 for expedited service.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Maryland, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your Maryland business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Maryland company?
As you research available business names in Maryland, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Maryland business
Ready to set up your business in MD? Here’s what you do:
1. File your Articles of Organization
Visit the Maryland Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Maryland, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Maryland, the cost is $100.
4. Wait for approval
Maryland will review your application and typically provide approvals within five to seven business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Maryland small business facts
Let’s start off by showing you some facts about the small business industry in Maryland. We gathered a couple of interesting facts from the U.S. Business Administration which are good to know before starting your business:
- In the state of Maryland, there are 594,124 small businesses that employ 1.1 million Maryland residents, which is 50.1% of the private workforce in 2016.
- The unemployment rate in Maryland has dropped down to 3.7% in February 2019 from a high of 4.2% in February 2018, meaning the state is generating more jobs each year.
- Minority-owned small businesses in Maryland employ 193,099 people.
- The growth rate of the Maryland economy is at 2.3% in 2018, which is slightly higher than the 2.2% growth rate in 2017.
- In the third quarter of 2017, almost 4,000 establishments started up and generated over 18,000 new jobs in the state of Maryland.
- However, in 2017, 3,782 establishments closed down with over 15,000 jobs lost.
- The leading industry in terms of employment in Maryland is the health care and social assistance industry with 166,711 employees in small businesses alone. It is followed by the professional, scientific, and technical service industry with 149,734 employees.
- In terms of the leading industry overall, the professional, scientific, and technical service industry leads with the most number of firms.
- The firms with fewer than 100 employees have the largest share of small business employment.
- In 2016 alone, small businesses generated 37,604 jobs.
- Small businesses that have 20 employees experienced the largest gains in employment, adding a total of 24,056 net jobs in 2016.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Maryland:
Why is it so important to check on business name availability?
Maryland will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
How can I file my Articles of Organization in Maryland?
You can file your LLC formation documents online, by mail, or in person. If you plan to mail documents or visit the office, the address is:
State Department of Assessments and Taxation, Charter Division
301 W. Preston Street; 8th floor
Baltimore, MD 21201-2395
If you are mailing a check, it should be made out to the State Department of Assessments and Taxation. The cost of all the documents you are filing for, including registering your small business will be found on the form itself.
Do I need to register a sole proprietorship in Maryland?
While you don’t need to file Articles of Organization, you do need to obtain a state employment identification number or EID. To do so, you register with the Maryland Department of Assessments and Taxation. Some sole proprietorships, like those who have employees, also need a federal EIN, which is obtained on the IRS website.
What is considered a small business in Maryland?
Any business or firm that employs fewer than 500 employees is considered a small business in the state of Maryland. However, if the business structure is a corporation that still employs fewer than 500 employees, the business might not be considered a small business anymore. The typical structure of a small business in Maryland is a sole proprietorship, limited partnership, and LLC.
Should I register my business online or by mail?
Registering a small business online only takes around 5 to 7 business days, compared to registering by mail which could take 4 to 6 weeks. If you are in a hurry to register your business, the best way to register is by online registration.
Even if you are not in a rush, online registration is better because it does not involve printing forms.
Do I need to pay taxes as a sole proprietor in Maryland?
You still need to report your income and losses on your personal income tax return. There is no need for a sole proprietorship to file taxes separately. The name of the business should be the same name as your personal tax information.
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