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Step-by-Step Guide to Starting a Business in Maryland

Introduction:
Starting a business can be exciting, but it can also feel overwhelming if you don’t know where to begin. Whether you’re planning a small shop, an online store, or a service business, Maryland has clear steps to help you get started. This guide will walk you through everything — from choosing the right business structure to registering your company, handling taxes, and getting the necessary licenses.

1. Choose Your Business Structure
Before you register, decide what type of business you want to create:

  • Sole Proprietorship – simplest, but you’re personally liable.

  • LLC – protects your personal assets and is flexible.

  • Corporation – good for bigger businesses with investors.
    Tip: Many small business owners choose an LLC for protection and simplicity.

2. Register Your Business in Maryland
All businesses need to register with the Maryland Department of Assessments and Taxation (SDAT).

  • LLCs and corporations file directly with SDAT.

  • Sole proprietorships or partnerships need a “trade name” registration.
    You can do this online through Maryland Business Express.

3. Get Your EIN and Register for Taxes
An EIN (Employer Identification Number) is required for taxes and hiring employees. Apply online via the IRS website.
Next, register for Maryland state taxes, including sales tax or withholding tax, using the Maryland Combined Registration Application (CRA).

4. Obtain Licenses, Permits, and Insurance
Check if your business needs state or local licenses through the Maryland OneStop Portal.
Also, consider business insurance to protect yourself — general liability, professional liability, or workers’ compensation.

5. Plan, Finance, and Launch
Create a business plan to guide your strategy and help secure funding. Explore financing options like loans, grants, or personal savings. Finally, pick a business location and make sure it follows zoning rules.

Conclusion:
Starting a business in Maryland doesn’t have to be complicated. By following these steps — choosing a structure, registering, handling taxes, getting licenses, and planning your finances — you’ll be well on your way to launching a successful business. Take it one step at a time, and soon you’ll see your business dream come to life!

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