HOW TO FORM A PROFESSIONAL CORPORATION IN MARYLAND ONLINE
What is a Maryland Professional Corporation
Generally, if you are required to obtain some kind of license before you can market your skills in the state of Maryland then you will
most likely need to form a Maryland Professional Corporation.
Attorneys, architects, engineers, public accountants, nurses and physicians, among others, may require registration as a Professional
Corporation with the Maryland Department of Assessments and Taxation.
A Maryland Professional Corporation may render Professional Services in the state of Maryland
only through individuals licensed or otherwise authorized in Maryland to render the specific Professional Service.
Depending on exactly what it is that you want to do in Maryland, approval from a specific Maryland state agency or board may be required before the MD Department of Assessments and Taxation will approve a new
Maryland Professional Corporation filing.
This could add to the total processing time for a new Maryland Professional Corporation.
What are the advantages of a Maryland Professional Corporation?
explain
Maryland Professional Corporations are commonly formed by a group of licensed Professionals who want to open a joint practice.
The main advantage of Forming a Maryland Professional Corporation is that malpractice by one of the Professionals will not be
held against the other Professionals if they we're not involved in the malpractice.
Do I need a lawyer to Form a Professional Corporation in Maryland?
explain
The short answer is no.
The state of Maryland does not legally require a lawyer to form a
Maryland Professional Corporation.
Our detailed
Professional Corporation Information page may help you understand some
of the implications of forming a
Maryland Professional Corporation.
However, if there is
anything about
Forming a Professional Corporation in Maryland
that you're not sure about you should seek the advice of a competent Maryland lawyer, a Maryland accountant,
or both
before you
Form a Professional Corporation in Maryland.
Once you have made the decision to
Form a Professional Corporation in Maryland, a Maryland lawyer
can file your documents and act as a middle man for a few hundred dollars an hour; or you can use an online service provider like All Business Documents
to perform these services and
save money that you can use in your new Maryland Professional Corporation.
Do I have to Reserve a Company Name before I Form a Professional Corporation in Maryland?
explain
You are not legally required to reserve a Company Name for a new Maryland Professional Corporation before you submit your application to Form a Professional Corporation in
Maryland.
Whether or not you need to reserve a company name for your new Maryland Professional Corporation depends entirely on your business situation.
The Maryland Department of Assessments and Taxation uses names on a first come first served basis.
So if you think that someone may snatch the Company Name that you have in mind, you may want to reserve that Maryland Company Name.
What if the Maryland Professional Corporation Name I want is already taken?
explain
If the Name you have chosen for your new Maryland Professional Corporation is already in use by a currently active
Maryland Corporation or LLC, and you still want to use that Professional Corporation Name, then you will have to register a DBA Name with the Maryland Department of Assessments and Taxation. "DBA" is an abbreviation for "Doing Business As."
We verify that the Name you have chose for your new Maryland Professional Corporation is available before we submit
your Incorporation filing to the Maryland Department of Assessments and Taxation.
If necessary we can register a DBA Name in Maryland for you so that you can open your new Maryland business as quickly as possible.
Are there any Company Name restrictions for a MD Professional Corporation?
explain
A Maryland Professional Corporation corporate name must comply with all laws and regulations for regular Maryland
Corporation corporate names.
In addition, a Maryland Professional Corporation corporate name may not contain any language stating or implying that it is
incorporated for a purpose other than that authorized by its Articles of Incorporation.
A Maryland Professional Corporation corporate name must also conform with the name regulations of
any applicable Maryland Professional licensing board.
What do I have to do to Form a Professional Corporation in Maryland?
explain
7 things you have to do in order to Form a Professional Corporation in Maryland.
- Choose a name for your Maryland Professional Corporation
- Select an official address and a Registered Agent for your Maryland Professional Corporation
- Choose a Board of Directors for your Maryland Professional Corporation
- Decide who will be Officers for your Maryland Professional Corporation
- Determine how you want your Maryland Professional Corporation to be taxed
- File Articles of Incorporation with the Maryland Department of Assessments and Taxation
- Get a Federal Employer Identification Number (FEIN) for your Maryland Professional Corporation
- Choose a name for your Maryland Professional Corporation
Your Maryland Professional Corporation name can identify the type of products and services your business will provide;
or it may be the name of the founder; or it can be a combination of the two or something else.
In any case, the Maryland Professional Corporation name that you choose must be distinguishable from the name of any other registered Maryland Professional Corporation or other
business entity and the name must also be different from any reserved names on record with the state of Maryland.
Your Maryland Professional Corporation name must not imply that it was formed for a purpose other than that stated in your
Articles of Incorporation;
and your Maryland Professional Corporation name must not be a name that is likely to mislead the public.
The name of a Maryland Professional Corporation must include the word "Corporation" or
"Incorporated" or an abbreviation of one of these words.
It's important to choose a good name for your Maryland Professional Corporation because if you want to change it after you incorporate you
will have to file amended Articles of Incorporation with the Maryland Department of Assessments and Taxation (and pay a fee).
We will:
- Check to make sure that your Maryland Professional Corporation name is available
- Make sure your Maryland Professional Corporation name conforms to state of Maryland regulations
- Reserve your Maryland Professional Corporation name with the Maryland Department of Assessments and Taxation
- Select an official address and a Registered Agent for your Maryland Professional Corporation
Every Maryland Professional Corporation must have an address that is physically located in the state of Maryland.
This address is "registered" with the Maryland Department of Assessments and Taxation.
The Registered Address is where official and legal correspondence can be delivered.
The individual or company that is registered with the state of Maryland to receive all correspondence on behalf of the Maryland
Corporation is called a "Registered Agent".
You may act as your own Registered Agent, however, many Maryland Professional Corporations hire a Registered Agent because they don't have a physical
address within the state of Maryland or to provide a distinct level of privacy.
We can act as the official Registered Agent for your Maryland Professional Corporation.
- Choose a Board of Directors for your Maryland Professional Corporation
All Maryland Professional Corporations are required to have a Board of Directors.
Directors are the people who will set policies for your Maryland Professional Corporation and manage the business and its resources.
In the majority of small corporations directors are the owners.
The Articles of Incorporation or Corporate Bylaws may define specific qualifications for Directors.
The Board of Directors is responsible for creating rules, approving budgets and distributing profits to shareholders.
One of the most important duties of the Board of Directors is electing Officers for your Maryland Professional Corporation.
The same person may be a Director and an Officer at the same time.
Directors need not be residents of the state of Maryland or shareholders of the Maryland Professional Corporation unless the Articles of Incorporation
or Bylaws require it.
Normally Directors for your Maryland Professional Corporation are elected for a term of one year.
Elections are held at the annual meeting of Shareholders.
The Directors serve until the next annual Shareholders meeting.
- Decide who will be Officers for your Maryland Professional Corporation
The Board of Directors elects Officers for your Maryland Professional Corporation in accordance with the Corporate Bylaws and Articles of Incorporation.
Officers serve at the pleasure of the Board of Directors of the Maryland Professional Corporation.
Officers handle the day to day operation of the Maryland Professional Corporation.
Unless specifically prohibited by the Corporate Bylaws or Articles of Incorporation, in a Maryland Professional Corporation
the same person may hold more than one Corporate Office at the same time.
However, there are certain legal affairs in which the same person cannot act in more than one capacity.
One Officer - usually the Secretary - is given responsibility for preparing Minutes of Directors and Shareholders meetings
and for authenticating records for the Maryland Professional Corporation.
- Determine how you want your Maryland Professional Corporation to be taxed<
The Maryland Corporate Income Tax Rate is %.
You may form an S Corporation in Maryland.
S Corporations may "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable
personal rate.
S Corporations do not pay any Maryland Corporate Income Tax.
If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Maryland Professional Corporation and include it with
your Incorporation documents.
- File Articles of Incorporation with the Maryland Department of Assessments and Taxation
In order to form a Corporation in Maryland you must file Articles of Incorporation with the Maryland Department of Assessments and Taxation.
The Articles of Incorporation must include certain specific information about your Maryland business. If the Articles do not conform exactly to state of Maryland requirements they will be rejected.
You may subsequently amend the Articles of Incorporation for your Maryland Professional Corporation but you will have to pay a fee to the state of
Maryland in order to make the changes official.
- Get a Federal Employer Identification Number (FEIN) for your Maryland Professional Corporation
A Federal Employer Identification Number, also known as a Federal Tax Identification Number, is used by the IRS to identify a
business entity.
An FEIN is like a Social Security Number for your Maryland Professional Corporation.
All Maryland Professional Corporations are required to have an FEIN.
We can obtain an FEIN for your Maryland Professional Corporation.
- Issue Stock Certificates to the Initial Shareholders
Corporate stock is evidence of ownership of a Maryland Professional Corporation.
When you form your Maryland Professional Corporation, you will need to determine what type of stock and the number of shares of each type that
you want to authorize.
You do not have to sell the number of shares that are authorized.
Many small Maryland Professional Corporations hold 100% of the shares.
Stockholders in a Maryland Professional Corporation are entitled to voting rights or dividends of the Corporate profits or both.
Whoever owns over 50% of the stock of the Maryland Professional Corporation is able to make all Corporate business decisions.
Maryland Professional Corporations usually hold at least 51% of the corporate stock in order to retain control of the Maryland Professional Corporation.
What do I have to do after I form my Maryland Professional Corporation?
explain
6 things you have to do after you Form a Professional Corporation in Maryland.
- Conduct an initial Meeting of the Board of Directors and adopt Corporate Bylaws
- Open a Business Bank Account in Maryland for your Maryland Professional Corporation
- Obtain Business Licenses from the cities and counties in which you plan to do business
- Hold Meetings of Shareholders and Directors of each year
- File the required Maryland Professional Corporation reports
- Keep proper records of your Maryland Professional Corporation on file
- Conduct an initial Meeting of the Board of Directors and adopt Corporate Bylaws
The Board of Directors holds an initial meeting to elect Officers, authorize issuance of stock and adopt the Corporate Bylaws.
Bylaws are the internal rules of your Maryland Professional Corporation.
They are adopted by the Board of Directors and vary widely from Corporation to Corporation.
Commonly bylaws include the number of seats on the board of directors; how Directors are elected; how meetings of Directors and
Shareholders are to be conducted; what Officers the Maryland Professional Corporation will have and a description of each of their duties.
As your company grows over time, you may amend your bylaws as necessary.
Bylaws generally cannot be amended by the Board of Directors unilaterally.
A vote by the majority of Stockholders of the Maryland Professional Corporation is usually required to amend the Corporate Bylaws.
Bylaws may include any rules for managing the business and conducting corporate affairs.
Almost anything may be written into the Bylaws, however, the Bylaws must not be in violation of any federal or Maryland law or
the Maryland Professional Corporation's Articles of Incorporation.
A copy of the Corporate Bylaws should be maintained at the Corporation's principal Maryland office.
- Open a Business Bank Account in Maryland your Maryland Professional Corporation
It's very important that you have a separate business bank account for your Maryland Professional Corporation.
Mixing personal and business funds can get you in a lot of trouble with the tax man down the line.
It's a good idea to contact the bank before you open a business bank account.
Specific requirements vary from bank to bank.
- Obtain Business Licenses from the cities and counties in which you plan to do business
We can research and prepare the necessary forms for your required business licenses and permits and include
them in your Maryland Professional Incorporation package.
Note that forming a Maryland Professional Corporation doesn't take the place of obtaining a business license, tax
registration certificate, or other required business permits.
A Maryland Professional Corporation merely creates an ownership structure that limits the owners' personal liability.
You may still need to take care of getting set up to do business with your local government.
Depending on the nature of the business and the location of your Maryland Professional Corporation you may need to get one or more city
business licenses or permits.
The business licenses or permits that are required for your Maryland Professional Corporation vary depending on your business activities
and the specific locations within the state of Maryland in which you want to conduct business.
If your Maryland Professional Corporation will be selling products in Maryland you may be required to obtain a Reseller's Permit from the appropriate
Maryland state agency.
If your Maryland Professional Corporation will be selling products in Maryland you will also be responsible for all applicable local and state of Maryland
sales taxes if there are any.
- Hold Meetings of Shareholders and Directors of each year
Every Maryland Professional Corporation must hold corporate and shareholder meetings, at least annually, and must keep minutes of each meeting
on file.
A copy of the minutes is evidence that the meetings took place and includes all resolutions that were adopted.
The minutes of each meetings must be open for inspection by any Shareholder or Director.
This meeting requirement is often overlooked and comes into play when the Maryland Professional Corporation is challenged for any reason.
Keeping proper meeting minutes and documenting resolutions made and approved by the Directors is a formality that could save your
Maryland Professional Corporation a lot of potential trouble.
We can transcribe the minutes of any meeting of your Maryland Professional Corporation into a form that complies with all
state of Maryland requirements.
- File the required Maryland Professional Corporation reports
Every Maryland Corporation must file an Annual Personal Property Return EACH year with the MD Department of Assessments and Taxation.
The Maryland Corporation Annual Personal Property Return is due at the Maryland Department of Assessments and Taxation by April 15 EACH year.
If a Maryland Corporation files its Annual Personal Property Return with the Maryland Department of Assessments and Taxation after the due date, the MD Corporation will have to pay a penalty, to which is interest is compounded, and risks being dissolved by the Maryland Department of Assessments and Taxation.
- Keep proper records of your Maryland Professional Corporation on file
Keep the following records on file and available at the principal business office of your Maryland Professional Corporation:
- Names and addresses of all Directors and Officers of the Maryland Professional Corporation
- Articles of Incorporation for the Maryland Professional Corporation and any Amendments to them
- Corporate Bylaws for the Maryland Professional Corporation and any Amendments to them
- List of current shareholders of the Maryland Professional Corporation.
If shareholders change, keep a record of old shareholders and how stock was transferred.
- Minutes of all Meetings of Shareholders and Directors
- Copies of any Corporate Resolutions which have been adopted by the Maryland Professional Corporation
- Copies of all tax returns and Annual Reports for the Maryland Professional Corporation for the last 3 years
What information do I need in order to Incorporate in Maryland?
explain
In order to Incorporate in Maryland you'll need the following information about your new Company:
- The name of your new Maryland Professional Corporation along with your second choice of a name in case the name that you want is not available
- Physical address of the Corporation office in Maryland (not a PO Box)
- Name and address of your Maryland Registered Agent (not a PO Box)
- Names and addresses of the initial Directors of the Maryland Professional Corporation
Remember -
ALL the information that you provide when you Incorporate in Maryland becomes part of the public record.
Our data entry forms include the
absolute minimum amount of information that is required in order to Form a new Corporation in Maryland.
How long does it take to Form a Professional Corporation in Maryland?
explain
Processing times for new Maryland Professional Corporation applications vary depending on the work load of the
Department of Assessments and Taxation's staff.
We've found that normal processing of new Maryland Articles of Incorporation takes the state around 7 business days.
Add 2-3 days for the time period for shipping the final documents by mail.
Choosing our Express Mail option can shave a couple of days off the total processing time for your Maryland LLC.
PLEASE NOTE:
WE CANNOT GUARANTEE MARYLAND DEPARTMENT OF ASSESSMENTS AND TAXATION PROCESSING TIMES.
We are dependent on, and have no control over, the staff and systems of the Maryland Department of Assessments and Taxation.
In our experience 7 business days is the time it
usually takes the Maryland Department of Assessments and Taxation to process
a new Maryland Professional Corporation application.
We get your Maryland Professional Corporation application to the MD Department of Assessments and Taxation ASAP.
Once it is at the state we have no control over the new Maryland Professional Corporation application process.
How much does it cost to Form a Professional Corporation in Maryland?
explain
The state of Maryland charges $140.00 to Incorporate a Professional Corporation.
This is the cost of filing and getting a Certified Copy of your Articles of Incorporation from the MD Department of Assessments and Taxation.
If you choose All Business Documents to help you form your Professional Corporation in Maryland our processing fees are $125.00.
We start processing your new Maryland Professional Corporation order as soon as we get it.
Our service includes:
- MD Name Check and Reservation
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Maryland Department of Assessments and Taxation
- Certified Copies of Articles of Incorporation
- Maryland Professional Corporation Checklist
- Priority Mail Delivery
- Unlimited Customer Support
How can I Form a Maryland Professional Corporation Online?
If you are ready to
Form a Maryland Professional Corporation simply choose which Maryland
Professional Corporation options that you want below then click the
Next Step button.
You will be directed to a screen on which you can enter your specific Maryland Professional Corporation information and finalize your order.
If you have any questions regarding our Maryland Professional Corporation services you can call us at
855-771-2477
or email us at
CorpServices@AllBizDocs.com.
MARYLAND PROFESSIONAL CORPORATION COST ESTIMATOR
Our Maryland Professional Corporation
Processing Services include:
(These services are included in our processing fees)
Optional Maryland
Professional Corporation Services
(Choose options, cost is updated automatically)
-
Expedited Service - $70
explain
Normal processing time for a new Maryland Professional Corporation is 7 business days.
This is the time by which the Maryland Department of Assessments and Taxation will either approve or deny the Professional Corporation application.
Maryland Professional Corporation applications must be received by the Department of Assessments and Taxation before noon Maryland time for the process to start that day.
Another way to expedite your order is to choose the Express Mail option.
The Express Mail option can cut the document delivery time in half.
- Express Mail - $35
explain
If you really need your original approved Articles of Incorporation in your hands quickly, the
Express Mail option can cut the delivery time in half.
The Express Mail option has no effect on the Maryland Department of Assessments and Taxation's processing time. For the quickest turn-around time also choose the Expedited Service option.
-
S-Corporation Election - $50
explain
S Corporations are taxed differently than C Corporations.
With an S Corporation, business profits may be "passed through" directly to the shareholders.
This avoids the double tax on both corporate and shareholder profits.
S Corporations do not pay any Maryland Corporate Income Tax.
We can prepare the S Corporation Election form for you and include it with your Incorporation documents.
-
MD Registered Agent - $135
explain
Every Maryland Professional Corporation is required to have an address within the state of Maryland where
official and legal correspondence can be delivered.
The individual or company that is registered with the state of Maryland to receive all correspondence
on behalf of the Professional Corporation is called a Registered Agent.
You may act as your own Registered Agent, however, many Professional Corporations hire a Registered Agent because they don't have a physical address within
Maryland or to provide a distinct level of privacy.
We can act as your Maryland Professional Corporation Registered Agent.
This is an annual service.
We will forward all correspondence to you and will remind you when it is time to renew your MD Registered Agent services.
-
Customized Bylaws - $75
explain
Bylaws are the rules by which your Maryland Professional Corporation must operate.
Every new Maryland Professional Corporation requires bylaws.
Almost anything may be written into the bylaws, however, the bylaws must not be in violation of any law or
your Maryland Professional Corporation's Articles of Incorporation.
We can create customized initial bylaws for your Maryland Professional Corporation that are based on your specific business requirements.
As your company grows over time, you may amend your bylaws as necessary.
-
MD Good Standing Certificate - $73
explain
A Maryland Good Standing Certificate is proof of the existence of your new Maryland Professional Corporation.
The Certificate is issued by the Maryland Department of Assessments and Taxation and is proof that your MD Professional Corporation is not behind on any
of its Maryland Department of Assessments and Taxation Corporate obligations.
A Maryland Good Standing Certificate is often required for loans, to apply for business licenses, or for tax or other business purposes
in the state of Maryland or in any other state.
We can get your Maryland Good Standing Certificate immediately after the Maryland Department of Assessments and Taxation has approved your Professional Corporation application.
-
Federal EIN - $65
explain
An FEIN is like a Social Security Number for your Maryland Professional Corporation.
We can get your FEIN on the same day that your Articles of Incorporation are approved by the Maryland Department of Assessments and Taxation.
You can get your FEIN before your articles are approved by the Maryland Department of Assessments and Taxation but it's a good idea to wait until
after approval.
Your filing may be rejected or the Professional Corporation name that you want may not be approved.
Changing information on an FEIN filing is not a trivial exercise with the IRS.
-
Prof. Corporation Kit and Seal - $99
explain
While you're not required to have a Professional Corporation Kit and Seal for your new Maryland Professional Corporation they do come in handy.
The MD Professional Corporation Kit consists of a beautiful customized binder, stock certificates, a stock ledger
and your custom Professional Corporation Seal.
The Professional Corporation Seal is used to emboss important company documents, such as stock certificates.
The binder also includes dividers so you can use it for all of your Maryland Professional Corporation record keeping.
-
Business License Research - $175
explain
Most new Maryland Corporations are required to get some kind of state, regional or local permits or business licenses.
The task to figure out exactly what you need can be daunting.
We can determine exactly which forms you need to fill out, fill them out for you and file the forms with the appropriate government agency
where possible.