Doing Business in Maryland as a Delaware LLC

delaware llc doing business in maryland

Most people that form a Delaware LLC do not actually operate their company in Delaware. They simply form their business in Delaware in order to take advantage of the state's strong corporate law structure.

There are many advantages to forming a company in Delaware, even if you operate it in another state, such as Maryland. 

Maryland, like many other states, has an application process and a state fee for Delaware companies that operate there. The process in which a Delaware LLC registers in Maryland is called Foreign Qualification.

If you want your Delaware LLC to do business in Maryland, your LLC will be domestic to Delaware and foreign to Maryland, so Foreign Qualification is the process by which Maryland grants your company permission to operate in that state with a Delaware LLC. If you're planning on doing business in Maryland as a Delaware LLC, you can learn more about Maryland Foreign LLC Registration on our website.

In addition to the Maryland Foreign Limited Liability Company Registration form, Maryland also requires you to provide it with a Certificate of Good Standing from Delaware. The agency that accepts this registration is the Maryland State Department of Assessments and Taxation.

We can also provide a Registered Agent in Maryland for you, if you will not be your own agent. The state will send all legal documents and correspondence to your Maryland Registered Agent. If you have a physical address in Maryland, you are welcome to act as your own Registered Agent, though you can also retain one in Maryland.

The state of Maryland does not have a requirement to publish your application unless it is specifically required by the county in which your Registered Agent resides.

Normal processing for a Maryland Foreign Qualification application can take eight weeks, plus time for mailing; many people choose to expedite the processing time for an additional fee so they have all the paperwork in hand as soon as possible.

Once your Delaware LLC is registered as a foreign entity in Maryland, the state of Maryland will require an annual report. This report is due April 15 of each year, along with a $300 fee, and it must be mailed to the state--it cannot be emailed. The annual report is similar to a tax return and many clients seek the help of a tax professional for assistance.

At your request, we can prepare the registration form for you, obtain the Certificate of Good Standing from Delaware, file everything with Maryland in a timely fashion and pay the state fee for you.

If you take advantage of our service, you will likely receive your approved documents for your foreign Maryland registration in about 10 business days.

For more information or to get started, please visit our Foreign Qualification page. We're also available to help with the Maryland Foreign Qualification process over the phone at 800-345-2677.

*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.

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There are 3 comments left for Doing Business in Maryland as a Delaware LLC

C Kaplan said: Saturday, February 17, 2018

I am an Amazon seller who lives in Maryland but has an LLC in Delaware. Since my business is done online where should I obtain my resale license - MD or DE? I have no warehouse, no inventory in any state. Also, do I need a foreign qualification for MD?

HBS Staff replied: Monday, February 19, 2018

Often clients obtain their resale certificate in the state in which they are running the business. For online businesses, this is often the state in which they pay income taxes, open their bank account, and it is typically where they physically are.

Foreign qualification is generally a prerequisite to the resale certificate. We often see our Maryland clients register as a foreign entity in Maryland before obtaining a resale certificate.

 

Carol Shifflett said: Friday, August 25, 2017

I would like to learn more information on how you can set up the organization for me, the cost for you doing that and what I need to do on my end. Thank you,

HBS Staff replied: Monday, August 28, 2017

Here is information about our formation packages. You can find much more information on our website, or feel free to call 302-645-7400 during normal business hours.

https://www.delawareinc.com/ourservices/compare-domestic-packages/

 

Carol Shifflett said: Wednesday, August 23, 2017

I would like to learn more information on how you can set up the organization for me, the cost for you doing that and what I need to do on my end. Thank you,

HBS Staff replied: Wednesday, August 23, 2017

Hello. If you are referring to a Delaware LLC, here is the information you've requested.

https://www.delawareinc.com/ourservices/compare-domestic-packages/

Feel free to call us during normal business hours or Live Chat with us from our homepage for more information.

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