How do I Start a Minority Business in Maryland?
To start a minority business enterprise in Maryland, you must identify the business in corporation papers as 51 percent minority-owned. The start-up process is the same for anyone starting a business, but once you have opened the business Maryland has a program designed to help minorities participate in state and local bidding. The Minority Business Enterprise Program, or MBE, mandates that large companies that would normally win the awards give a percentage of the bid to a minority firm. Large firms that comply with hiring minority firms receive preference from the state when awarding a bid.
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Things You'll Need
- Business license
- Corporation papers
- Minority Business Enterprise application
Instructions
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Obtain a business license from the Clerks of the Circuit Court in the Maryland county in which your business is based. Business license costs vary by county and trade. Licensing fees can apply to certain trades such as construction. Call the Clerks of the Circuit Court to obtain business license information by county. Provide the name and address of your business even if you are starting a home-based-business.
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Apply for an EIN, or Employer Identification Number. This is the federal tax ID for your business. Obtain a number online or by calling or visiting a local IRS office. You will be asked some questions about your business, and upon completion of your interview will receive an EIN.
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Contact an insurance company that sells commercial insurance for liability and worker's compensation quotes. Obtain any insurance needed to run your business. Home-based businesses generally don't require immediate insurance unless you are operating one that puts someone at risk such as construction, electrical, plumbing or landscaping.
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Apply for corporation papers from the Maryland Department of Assessments and Taxation. These corporation papers will be requested in the minority business certification process and will identify ownership of your business.
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Review the personal net-worth requirements on the Maryland Department of Transportation website to determine if you qualify for the program. As of 2010, your personal net worth cannot exceed $1,504,585.
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Apply for certification as an MBE firm. According to the Maryland Department of Transportation, in addition to being 51 percent minority owned, the business must be controlled by one or more socially and economically disadvantaged individuals. The Maryland Department of Transportation is the certification agency for the state of Maryland. The application can be found on the MDOT website.
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Appear before the Maryland Minority Business Enterprise Advisory Board to discuss your business and respond to questions. You will be notified by an MBE officer when to appear. Applications are forwarded to the Maryland Certification Unit and you will be assigned an MBE officer who will perform a job-site visit or visit you at your office. Recommendations are then made to the advisory chairperson, who makes the final decision. Notifications are processed by mail.
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Participate in training and mentoring programs in the Maryland Minority Business Program. Classes are designed to help you become familiar with the bidding and contract awards process. You will have a chance to meet and network with potential clients while you learn how to do business with the state. The Governor's Office of Minority Affairs is an additional source for training and resources.
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Tips & Warnings
To understand types of corporations, go to the Maryland Department of Assessments website.
References
- Maryland Department of Transportation: MBE Program
- Maryland Department of Transportation: MBE/DBE Application
- Business License Information System:Small Business Assisitance
- Comptroller of Maryland: Clerks of the Circuit Court
- IRS: Apply For Employer Identification Number
- Maryland: Office of Minority Affairs
Resources
- Photo Credit Maryland state contour against blurred USA flag image by Stasys Eidiejus from Fotolia.com
