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Incorporating a Business in Maryland

Benefits of Incorporating in Maryland

Regardless of the size of your Maryland business, all Maryland businesses can benefit from incorporating. Advantages of forming a corporation or Limited Liability Company (LLC) in MD include:
  • Personal asset protection. Both corporations and LLCs in Maryland allow owners to separate and protect their personal assets. In a properly structured and managed company, owners should have limited liability for business debts and obligations.
  • Additional credibility. Adding Inc. or LLC after your Maryland business name can add instant authority. Consumers, vendors, and partners may prefer to do business with an incorporated company.
  • Name protection. In most states, other businesses may not file your exact corporate or LLC name in the same state.
  • Perpetual existence. Corporations and LLCs in continue to exist, even if ownership or management changes. Sole proprietorships and partnerships just end if an owner dies or leaves the business.
  • Tax flexibility. Though profit and loss typically pass through an LLC and get reported on the personal income tax returns of owners, an LLC can also elect to be taxed as a corporation. Likewise, a corporation can avoid double taxation of corporate profits and dividends by electing Subchapter S tax status.
  • Deductible expenses. Both corporations and LLCs may deduct normal business expenses, like salaries, before they allocate income to owners.


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Related Resources:
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