open a small business in Maryland
Maryland has a lot of business opportunities. The Maryland suburbs of Washington, D.C., offer many customers with high wages. Baltimore offers a vital downtown that has both an extensive tourist industry and a long record of manufacturing success. The Eastern Shore of Maryland offers farming, beaches and incredible resort properties. Despite the many opportunities, the United States Bureau of Labor Statistics reports that half of all small businesses fail, and most do so in less than two years. Proper planning can help your Maryland business overcome the statistics and prosper.
Instructions
1. Outline a plan for your Maryland business. The plan should include: what type of business you want to set up, what your goals are for that business, how many employees you will need, where the business will be located, how your business will be financed, what your projected expenses will be and how much money you expect to make in the business in the first, second and third year.
2. Decide on a name for your business and reserve that name by contacting the Maryland Department of Assessment & Taxation. Your business name sets the tone for your business identity, so take care when selecting it and be sure it has not already been taken.
3. Decide on a business structure for your Maryland business. There are many legal forms that you can use to operate your business. If you incorporate your business or form a limited liability partnership, then the extent of your personal liability is usually limited of the amount of your investment in the business. If you operate as a sole proprietorship, then you may have greater liability. Seek legal advice when deciding the form for your Maryland business.
4. Select a location for your Maryland business. Evaluate whether the location will be suitable for your business. Things to consider include: cost, square footage, foot traffic, street traffic, accessibility to public transportation and general suitability for your business activities.
5. Obtain financing for your Maryland business. Check with the Small Business Administration (SBA), commercial banks or venture capital to secure funds to use to start your Maryland small business. The Maryland Small Business Development Center Network operates offices throughout Maryland that help small businesses evaluate financial options.
6. Contact the IRS and obtain a federal Employer Identification Number (also called an EIN) for your new Maryland business if you plan to have any employees. You need an EIN to file tax reports with the federal government for federal taxes withheld from your employees' paychecks.
7. Contact the Maryland Comptroller of the Treasury to establish a business tax account. Retail businesses collect sales tax and make periodic payments to the state of Maryland. There are penalties for failure to establish a tax account, collect sales taxes and file the reports in a timely manner.
8. Obtain all appropriate business licenses. In Maryland, business licenses are issued by the Clerk of the Circuit Court for the county where the business is located and by the Comptroller of Maryland. Specialized business licenses and permits are also required by the Maryland Department of Agriculture, Maryland Department of Health and Mental Hygiene or the Maryland Department of Transportation, depending on the type of business. Maryland operates a database called Business License Information System, or BLIS, that helps new businesses identify the licenses required.
9. Create marketing materials for your Maryland business. You will need to show marketing materials often to demonstrate why your business idea is good, how it will make money and why you are the right person to run the business.
