One of the most common questions we receive is whether a Delaware business can operate in other states, like Maryland. The answer is simple: yes, a Delaware business can operate in any state within the U.S.
For example, you can purchase property in Florida or run your business in California as a Delaware company. Many business owners choose Delaware because it offers the strongest corporate laws and favorable tax advantages, even though they don’t conduct their business there.
If you plan to operate your Delaware business in Maryland, there is an application process and state fee involved, known as Foreign Qualification. This process grants you the legal ability to operate in Maryland as a foreign entity.
Steps to Operate in Maryland as a Delaware Business
1. Foreign Qualification: To operate in Maryland, you must apply for Foreign Qualification, which essentially registers your Delaware business as a foreign entity in Maryland.
2. Certificate of Good Standing: Maryland also requires a Certificate of Good Standing from Delaware, in addition to the Foreign LLC Registration Form.
3. Registered Agent: You need to list a registered agent in Maryland to receive legal documents on behalf of your business. If you have a physical address in Maryland, you can serve as your own registered agent. If not, you can appoint a third-party service.
4. Publication Requirement: You do not need to publish your application unless Maryland requires it under specific circumstances.
5. Processing Time: The Foreign Qualification process typically takes about eight weeks, including mailing time. You can choose expedited processing for an additional fee to speed up the process.
Annual Requirements for Maryland
Once registered, Maryland requires you to submit an annual report, similar to a tax return, with a deadline of April 15 each year. There is a $300 annual fee associated with this report. Many business owners choose to seek professional assistance with this process.
How We Can Help
If you work with us, we can handle your entire Foreign Qualification process, obtain the necessary Certificate of Good Standing from Delaware, and ensure all documents and payments are processed on time.
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Choose one of our services to help you operate your Delaware business in Maryland. Contact us for further assistance.
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