Incorporate in maryland
How to Incorporate in Maryland
There are some steps to incorporate in Maryland. They are given below.
Choose a name:
First of all we have to choose a name in forming a corporation in Maryland.
The chosen name must be:
Maryland corporation is organized for a purpose other than that permitted by the state law or the articles of incorporation.
The name we choose must contain one of the following words.
Incorporated
Corporation
Company
Limited
Articles of Incorporation
We have to file the articles of incorporation with the secretary of Maryland when we start corporation in Maryland. Certain information is required by the Maryland Law in the articles of incorporation.The following are the information required in the articles of incorporation.
Information about the incorporators:
Minimum number of incorporators: 1 or more
Eligibility: Incorporator must be at least 18 years old.
Duties:
Listing Requirements: sign, acknowledge and submit
Listing Requirements:
The name and address of each person incorporating in Maryland must be listed,along with a statement by each incorporator that he or she is.
Forming a corporation under Maryland Law.
Purpose of corporation:
Maryland allows incorporations to be formed for any lawful business activity.
Director Information:
Minimum number of directors: 1 or more to be listed in the bylaws
Eligibility Requirements: None.
Listing Requirements: The number of Directors and the names of all initial Directors must be listed
Stock Information:
The articles of incorporation must contain:
The total number of shares by class and per value
The per value of all shares
Any preferences, conversions or other share rights
Other information required is:
The corporation's residing agents name and address
The corporations principal offices address.
Optional provisions:
Some additional provisions to be added in the articles of incorporation is permitted by Maryland. They are:
Stock transferability
Purposes whose authorization requires greater portion of shares or a lesser portion of share or class votes subject to certain state requirements.
Divide Directors into classes including the term office for each class.
The establishment and term of cumulative voting in the election of Directors for the purpose of minority representation
Regulating the powers of corporation, its Directors and shareholders
Consideration by the board directors regarding by the effects of a potential acquisition of control on particular parties
Limitation and director and officer liability to the corporation or its shareholders for money damages in certain situations
Bylaws:
The business affairs in Maryland are governed by Bylaws. The corporation maintains its bylaws at its principal executive office. The board of directors may adopt, amend or repeal Bylaws, unless the articles reserve this right for shareholders.
Officer information:
The officers must be listed in the Bylaws.
There must be at least a president, a secretary and a treasurer for a corporation.
An officer serves for one year and until a successor is elected and qualifies.
Residing agent:
There must be a residing agent for every Maryland corporation.
A residing agent is a person is designated to receive official state correspondence and notice if the corporation is served with a lawsuit.
Eligibility requirement for the residing agent:
The residing agent must be either
A residing individual of this state or a Maryland corporation
Professional corporation:
A professional corporation is formed in order to render services with one specific profession under Maryland Law.
Annual report:
The report and a fee must be filed with the Maryland Department of Assessments and Taxation each year with the corporate business personal property return.
Corporate statement affairs
The president or other officer must report to the shareholders a statement of affairs which includes the corporation's balance sheet and financial statement of operations. It must be submitted at each annual shareholders meeting and filed at the principal office within 120 days after the end of the fiscal year.
S corporation:
S corporation status is recognized by the state of Maryland
These are the steps to be followed in forming a corporation in Maryland.
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