Comments on: How to start a company in Maryland http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/ a guide to project management, business, coding and anything else that we can think of. Wed, 03 Feb 2010 18:51:39 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Jackson Lin http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/comment-page-1/#comment-1699 Jackson Lin Mon, 28 Jul 2008 23:45:59 +0000 http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/#comment-1699 Hi <strong>Yun,</strong> You're company will be considered <em>forfeited</em>---that's the term they use. I'm not exactly sure what all that entails, but for one, the State of Maryland will no longer consider your company valid. I think after that happens you still have some time to "reactivate" it (plus fees), but I'm not sure how long you have. Remember that the fee starts <em>after</em> the first year, so at least you have some time before you have to pay. You can also ask them questions here: PERSPROP@dat.state.md.us Hi Yun,

You’re company will be considered forfeited—that’s the term they use.

I’m not exactly sure what all that entails, but for one, the State of Maryland will no longer consider your company valid.

I think after that happens you still have some time to “reactivate” it (plus fees), but I’m not sure how long you have.

Remember that the fee starts after the first year, so at least you have some time before you have to pay.

You can also ask them questions here: PERSPROP@dat.state.md.us

]]> By: Yun http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/comment-page-1/#comment-1698 Yun Mon, 28 Jul 2008 23:15:54 +0000 http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/#comment-1698 What if I do not pay $300 yearly fee? What would happen to me? What if I do not pay $300 yearly fee? What would happen to me?

]]> By: Startup Meme » Jumptree – project management made easy. http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/comment-page-1/#comment-1543 Startup Meme » Jumptree – project management made easy. Tue, 27 May 2008 14:29:26 +0000 http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/#comment-1543 [...] software also provides the main theme of building a small company from a [...] [...] software also provides the main theme of building a small company from a [...]

]]> By: Jackson Lin http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/comment-page-1/#comment-1494 Jackson Lin Fri, 23 May 2008 01:41:50 +0000 http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/#comment-1494 Hi <strong>Wole,</strong> Congratulations on starting up your company! And I'm relieved that my tips worked out. Since it was a year ago, I was afraid some of the procedures might have changed and might lead some people astray! Whew... :) Also, please come back when you're ready and let us know how your company is doing. Hi Wole,

Congratulations on starting up your company!

And I’m relieved that my tips worked out. Since it was a year ago, I was afraid some of the procedures might have changed and might lead some people astray! Whew… :)

Also, please come back when you’re ready and let us know how your company is doing.

]]> By: Wole http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/comment-page-1/#comment-1452 Wole Thu, 22 May 2008 19:26:04 +0000 http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/#comment-1452 Thanks Jackson. I printed your page and took it with me on my way to downtown to register an LLC. The address was correct and I parked at the public parkng across the road for $2.00. I followed your directions: from the frontdesk, then the receptions upstairs who gave me the necessary forms and told me to go to line 4 for expedited case. Took about 20 minutes, I paid cash (total of $192). Thanks for the site. Thanks Jackson. I printed your page and took it with me on my way to downtown to register an LLC. The address was correct and I parked at the public parkng across the road for $2.00. I followed your directions: from the frontdesk, then the receptions upstairs who gave me the necessary forms and told me to go to line 4 for expedited case. Took about 20 minutes, I paid cash (total of $192). Thanks for the site.

]]> By: Jackson Lin http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/comment-page-1/#comment-1429 Jackson Lin Tue, 13 May 2008 15:31:50 +0000 http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/#comment-1429 Hi <strong>Wole,</strong> Yeah, that was one thing we thought about as well since a lot of big, Fortune 100 companies incorporate in Delaware. One of the main reasons is because Delaware has no corporate state income tax. In addition, there are quite a few laws that are targeted at helping out big corps. Another state that has recently being popular for similar reasons is Nevada. In the end, it was too much of a hassle for a startup. Since if you incorporate out-of-state you'll need a Resident Agent (someone who resides in the state) to represent you. There are tons of companies that will offer this service, but we didn't feel it was worth the money. Also, you'll have the added burden of figuring out your taxes in multiple states (e.g. when you pay yourself a salary it'll be an out-of-state corporation paying your in-state taxes). And to find an accountant who understands multi-state taxes might be a bit troublesome and expensive. We ultimately decided to just keep things simple and incorporate in the state we were in. And if/when we get big enough, we can just re-incorporate in Delaware :) (Of course depending on your situation you might want to consult an accountant or lawyer about it.) Good luck and please come back and let us know how you guys are doing! Hi Wole,

Yeah, that was one thing we thought about as well since a lot of big, Fortune 100 companies incorporate in Delaware.

One of the main reasons is because Delaware has no corporate state income tax. In addition, there are quite a few laws that are targeted at helping out big corps.

Another state that has recently being popular for similar reasons is Nevada.

In the end, it was too much of a hassle for a startup. Since if you incorporate out-of-state you’ll need a Resident Agent (someone who resides in the state) to represent you. There are tons of companies that will offer this service, but we didn’t feel it was worth the money.

Also, you’ll have the added burden of figuring out your taxes in multiple states (e.g. when you pay yourself a salary it’ll be an out-of-state corporation paying your in-state taxes). And to find an accountant who understands multi-state taxes might be a bit troublesome and expensive.

We ultimately decided to just keep things simple and incorporate in the state we were in. And if/when we get big enough, we can just re-incorporate in Delaware :)

(Of course depending on your situation you might want to consult an accountant or lawyer about it.)

Good luck and please come back and let us know how you guys are doing!

]]> By: Wole http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/comment-page-1/#comment-1428 Wole Tue, 13 May 2008 14:57:53 +0000 http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/#comment-1428 Does anyone know if there is an advantage to registering a business in Delaware as opposed to ones local state? We are not thinking of taking the company public. Thanks. Does anyone know if there is an advantage to registering a business in Delaware as opposed to ones local state? We are not thinking of taking the company public. Thanks.

]]> By: Jackson Lin http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/comment-page-1/#comment-1370 Jackson Lin Fri, 28 Mar 2008 15:00:43 +0000 http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/#comment-1370 Hi <strong>Mike Harmon,</strong> Thanks! Hope you enjoy our site and when you get the chance, check out our <a href="http://www.jumptree.com/tour/" rel="nofollow">Jumptree Project Management Software</a> as well :) *** Hi <strong>Jorge,</strong> Yeah, I'm not sure if Virginia is like Maryland, but knowing what kind of taxes are in VA I can bet it does! The Maryland rates actually increased a lot in the past few years. I remember back in 2002 it was only $100. And then the next year it shot up to the current $300. Ouch! And I remember hearing that in California, it's around $900! Hi Mike Harmon,

Thanks! Hope you enjoy our site and when you get the chance, check out our Jumptree Project Management Software as well :)

***

Hi Jorge,

Yeah, I’m not sure if Virginia is like Maryland, but knowing what kind of taxes are in VA I can bet it does!

The Maryland rates actually increased a lot in the past few years. I remember back in 2002 it was only $100. And then the next year it shot up to the current $300. Ouch!

And I remember hearing that in California, it’s around $900!

]]> By: Jorge http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/comment-page-1/#comment-1369 Jorge Fri, 28 Mar 2008 14:53:04 +0000 http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/#comment-1369 That personal property tax is outrageous! So not only do we need to pay a corporation tax, but also this? Ridiculous. I'm guessing if MD has something like this then VA will for sure. Probably double. That personal property tax is outrageous! So not only do we need to pay a corporation tax, but also this? Ridiculous. I’m guessing if MD has something like this then VA will for sure. Probably double.

]]> By: Mike Harmon http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/comment-page-1/#comment-1368 Mike Harmon Fri, 28 Mar 2008 12:39:14 +0000 http://blog.jumptree.com/2008/how-to-incorporate-in-maryland/#comment-1368 I came across your blog on Technorati. Nice site layout. I will stop by and read more soon. Mike Harmon I came across your blog on Technorati. Nice site layout. I will stop by and read more soon.

Mike Harmon

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