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Thinking about starting a company? There are many kinds of business entities from which to choose. When structuring a business it is important to choose the right entity for your needs because legal responsibilities and protections will differ based on the type of business entity chosen. Four common business entities are: sole proprietorships, partnerships, limited liability companies, and corporations. This article focuses
on how to form a stock corporation in Maryland. A corporation is a business entity having legal authority to act as a single person, distinct from the stockholders (in Maryland shareholders are referred to as stockholders) who own it, and having rights to issue stock and exist indefinitely. Maryland corporations are governed by the
Code of Maryland, Corporations and Associations Article, Titles 1-7. The pros: The cons: These steps serve as a general guideline for the process of incorporating in Maryland. You can find a checklist for new businesses on the State Department of Assessments and Taxation (SDAT) website. You may also be able to
register and establish your corporation, make annual filings, and request document copies on the SDAT Maryland Business Express website. Seeking an attorney for consultation can help you avoid pitfalls if you have concerns.
The following must be included in the articles of incorporation:
It will take the SDAT four to six weeks to process your request to incorporate if you file the articles of incorporation by mail. If you want the documents to be processed sooner, you can visit the SDAT office between 8:30 a.m. - 4:00 p.m., Monday through Friday, to submit your filing to get same-day service. The costs involved with incorporating in Maryland are: $100 SDAT filing fee, $20 organization and capitalization fee (although it may be more if the aggregate par value of the stock exceeds $100,000), and a $5 document return fee. To see other fee amounts visit SDAT's website. The address of the SDAT is: State Department of Assessments and Taxation What do I have to do after I file?
Source Julia Wagner, Practicing pursuant to Rule 16 of the Rules Governing Admission to the Bar of Maryland – University of Maryland Francis King Carey School of Law (Fall 2014). Updated by People's Law Library Contributors Last Updated: Tue, 01/18/2022 - 3:32 am Is this legal advice?This site offers legal information, not legal advice. We make every effort to ensure the accuracy of the information and to clearly explain your options. However we do not provide legal advice - the application of the law to your individual circumstances. For legal advice, you should consult an attorney. The Maryland Thurgood Marshall State Law Library, a court-related agency of the Maryland Judiciary, sponsors this site. In the absence of file-specific attribution or copyright, the Maryland Thurgood Marshall State Law Library may hold the copyright to parts of this website. You are free to copy the information for your own use or for other non-commercial purposes with the following language “Source: Maryland's People’s Law Library – www.peoples-law.org. © Maryland Thurgood Marshall State Law Library, 2022.” Which of the following refers to the set of rules that a corporation adopts at its first organizational meeting to govern the management of the corporation?Corporate bylaws are a detailed set of rules adopted by a corporation's board of directors after the company has been incorporated. They are an important legal document for a corporation to have in place as they specify its internal management structure and how it will be run.
Which document is known as the rules of the corporation?Articles of Incorporation refers to the highest governing document in a corporation. It is also known known as the corporate charter. The Articles of Incorporation generally include the purpose of the corporation, the type and number of shares, and the process of electing a board of directors.
When was the term corporation first used?The word "corporation" derives from corpus, the Latin word for body, or a "body of people". By the time of Justinian (reigned 527–565), Roman law recognized a range of corporate entities under the names Universitas, corpus or collegium.
Which law are corporations formed under?In general, a corporation is formed under state law by the filing of articles of incorporation with the state. The state must generally date-stamp the articles before they are effective. You may wish to consult the law of the state in which the organization is incorporated.
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