In Maryland, the most common structure for real estate enterprises is an LLC. This is due to the ease with which a limited liability corporation (LLC) may be formed and operated.
If your real estate firm is sued, an LLC may safeguard your personal assets (vehicle, home, money). LLCs also provide credibility and tax-saving possibilities.
In Maryland, you may form a real estate LLC by filing the Articles of Organization with the MD Department of Assessments and Taxation. In Maryland, forming a real estate LLC costs $100.
The first step in organizing a real estate LLC is to choose a firm name. You must offer your company a distinct name that complies with Maryland naming regulations.
When you submit your Articles of Organization, you will formally register your name.
For further information, see the Maryland naming standards.
Determine if the name is available in Maryland. Make sure the company name you choose isn’t currently in use by doing an online LLC name search.
You must name a registered agent, also known as a resident agent in Maryland, when you submit your Articles of Organization.
The resident agent of your real estate LLC might be a person or a registered agent service. Although you may act as your own resident agent, many company owners choose to employ a registered agent service.
Consider the following before hiring a resident agent:
You must submit the Articles of Organization with the Maryland Department of Assessments and Taxation in order to register your Maryland LLC. This may be done in person, via mail, or online.
An LLC operating agreement is a legal document that defines your real estate LLC’s ownership and member responsibilities. An operating agreement is required for all Maryland LLCs.
Your operating agreement should include the following provisions:
You may include conditions in your real estate LLC operating agreement as long as they do not violate Maryland law.
The US Internal Revenue Service (IRS) uses an Employer Identification Number (EIN) to identify and tax firms. It’s essentially a business’s Social Security number.
Following the Formation of a Real Estate LLC
