How to Form a C Corporation in the State of Maryland
Forming a C corporation, or a regular corporation, occurs when a business owner files the appropriate document with the Maryland Department of Assessments and Taxation. Once the formation document gets approved, the company begins its existence as a separate legal entity from the shareholders and directors that started the business. A big advantage of C corporations in Maryland concerns the limited liability protection granted to shareholders, directors and officers of the business. As part of the incorporation process, Maryland C corporations must draft written policies and procedures for operating the business.
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Instructions
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Confirm name availability online using the Maryland Department of Assessments and Taxation website or by sending an email to charterhelp@dat.state.md.us. Conduct a name availability search by telephone at 410-767-1330. Maryland requires a C corporation to use a unique business name unlike any other registered with the Maryland Department of Assessments and Taxation. Choose a name that is distinguishable from other entities registered in the state. Add words like "corporation," "incorporated," "limited" and "company" to the legal business name.
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Obtain fill-in-the-blank articles of incorporation. Print articles of incorporation for a stock corporation from the Maryland Department of Assessments and Taxation website. Pick up fill-in-the-blank articles of incorporation personally at the Maryland Department of Assessments and Taxation office located at 301 W. Preston St., 8th Floor, Baltimore, MD 21201-2395. Call the Maryland Department of Assessments and Taxation at 410-767-1330 to have the articles sent by mail.
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Complete the articles of incorporation. Provide the name and address of an incorporator responsible for filing the articles with the Maryland Department of Assessments and Taxation. An Incorporator must be 18 years of age or older. Include the legal name and address of the business, the purpose for organizing the corporation, and the name and address of the company's registered agent. The registered agent has the responsibility of accepting legal documents on behalf of the company at the address listed in the articles of incorporation. Indicate the number of shares the company has the authority to issue and the minimum dollar amount that each share can be sold for. State the number of directors that will participate in the company, as well as the name and address of each initial director. Provide the signature of the company's registered agent and incorporator.
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Submit the completed articles to the Maryland Department of Assessments and Taxation. File the articles by mail or in person at the Maryland Department of Assessments and Taxation office. The filing can take place from Monday through Friday between the hours of 8 a.m. to 4:30 p.m. Eastern Standard Time. As of 2011, it costs $100 to file articles of incorporation with the Maryland Department of Assessments and Taxation. In addition, the Maryland Department of Assessments and Taxation charges a $20 fee, as of 2011, for organization and capitalization.
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Compose bylaws to establish rules and regulations for governing the business. Maryland does not impose specific guidelines on the content of a corporation's bylaws, which allows a Maryland C corporation to tailor its bylaws according to the specific needs of the business. Include the date and location of company meetings, the term served by company directors and the duties of company officers. Keep the bylaws at the company's main office location.
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