Most people that form a Delaware LLC do not actually operate their company in Delaware. They simply form the 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 to 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.
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.
A Registered Agent is required to be listed on the registration form. Maryland will send all legal documents and correspondence to your 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 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 in about 10 business days.