A lot goes into starting a Maryland limited liability company, but there’s no replacing the protection and peace of mind that this business structure provides.
The process can be surprisingly straightforward, but you’ll need to navigate a few major decisions at the outset. One of the most important steps? Designating a registered agent.
This decision doesn’t have to be difficult, but it does require a great deal of care and consideration. The wrong registered agent could cause a world of trouble for your LLC. To help you make a prudent decision, we’ve compiled a guide that covers all the essentials about Maryland registered agents.
LLC formation requirements vary dramatically from one state to the next, but registered agent selection is a clear essential throughout the nation.
While this representative is known by different names in some locations, the requirements are nearly always the same: A person or entity must officially be appointed to receive service of process on the LLC’s behalf.
In Maryland, this individual or organization is known as a resident agent, although the common term “registered agent” is still used in some situations.
As the use of the term “resident” implies, local affiliation is important for this role. Specifically, the General Provisions of the Maryland Code (Section 6-109) state that the resident agent must be “a citizen of this state who resides in this state, a Maryland corporation, or an officer of the state agency.”
Additional requirements for a Maryland resident agent include:
The latter requirement is arguably the most important. Service of process involves any official correspondence that your LLC might receive. Common examples include summonses and subpoenas.
The state’s court system only functions properly if LLC representatives can be relied upon to receive service of process. This, in turn, increases the likelihood of relevant parties responding promptly.
The answer to this important question is yes, but with some caveats.
As we’ve mentioned, a Maryland resident agent must be available to receive service of process, so if the day-to-day operations of your LLC keep you away from your business premises during office hours, you’re better off appointing somebody else.
If you run a smaller business with a limited need for mobility, acting as your own resident agent might be reasonable. Still, you’ll want to weigh the hassle of fulfilling this obligation against the convenience that a different resident agent can provide.
If you’re ready to appoint a Maryland resident agent, you’ll begin with filing your articles of organization. This key document is at the heart of LLC formation, and resident agent designation is one of the most important aspects of this filing.
The official Maryland form for the state’s articles of organization is deceptively simple. After you’ve designated your LLC’s purpose, you will provide the name and address of your new resident agent. This resident agent must sign your articles of organization before they are submitted.
Once you’ve completed your articles of organization, you can file them with the Maryland State Department of Assessments and Taxation. You will also need to submit a filing fee of $100.
Eventually, you may need a new resident agent. For example: Perhaps, when you launched your LLC, you decided to act as your own resident agent or let another LLC member handle the responsibility.
Now, you require greater flexibility and cannot be consistently available during business hours to accept service of process. Or maybe you’ve expanded across state lines and need a registered agent service to take over as this obligation becomes more complicated.
No matter why you need to select a new Maryland resident agent, you’ll be pleased to discover that it’s easy to make this change. That being said, this process looks a little different than other applications or amendments you’ve pursued, so due diligence is important. Before you proceed, be sure that you have an excellent replacement in mind.
Once you’ve developed a new resident agent strategy, begin the amendment process by having your previous agent resign. Unlike many official SDAT proceedings, this will not involve completing an already available form or answering questions online. Instead, you’ll need to submit a statement of resignation to SDAT. Typically, this includes the following:
Options abound for selecting a resident agent in Maryland, but there’s something to be said for using a service instead of appointing somebody you know—or handling this responsibility on your own. The following are among the most compelling benefits worth considering:
Starting an LLC may feel overwhelming, but a little guidance can go a long way. A registered agent service can provide valuable peace of mind when you’re worried about your ability to achieve protection from personal liability. That stress is quickly compounded by all the other concerns you need to handle as a prospective LLC member or manager.
With the right service in your corner, you can feel confident that crucial paperwork and service of process will be attended to, even when you’re occupied by other business concerns. You’ll also feel more capable of keeping your personal and business life separate—one of the chief goals of forming an LLC in the first place.
Serving as your own resident agent may be affordable, but this approach comes at the cost of personal privacy. Once you’ve filed the articles of organization, your status as a resident agent will be a matter of public record—as will your address.
Be prepared to receive a lot more unsolicited mail. What’s more, you could be approached for a summons in the event of a lawsuit. If you work with a registered agent service, you’ll avoid these risks while keeping your address private.
Resident agent requirements in Maryland are relatively straightforward, but complying with them can be difficult nonetheless. As we’ve discussed, compliance is especially complicated when you have differing requirements from several states to keep straight.
If you’re worried about compliance, it’s in your best interest to get a registered agent service involved. With outside help, you can feel confident that all relevant paperwork has been completed correctly.
This is only the beginning. Your registered agent will maintain backups of all essential forms. Furthermore, you’ll receive regular updates to ensure that you remain in the loop. If desired, your registered agent company can assist you with filing an annual report or taking care of other SDAT obligations.
Flexibility is increasingly crucial for success in today’s competitive business environment. This is especially true for LLC members, who often find themselves working odd hours or completing business responsibilities on the road. Remote and mobile opportunities can be helpful, but they’re less ideal if you’re designated as a resident agent.
One of the key responsibilities of a Maryland resident agent is to consistently be available during normal business hours. Depending on the nature of your business, though, this may be all but impossible to achieve. If you work with a registered agent service, you can rest easy, knowing that a professional is prepared to handle service of process on your behalf.
The complications of resident agent designation go even further if your business crosses state lines. Under this setup, you’ll need to establish registered agents in multiple states. Designating just one resident agent is complicated enough, but imagine navigating differing procedures in several locations. Thankfully, national registered agent companies are able to step in, providing a streamlined accounting process that involves just one vendor.
Other than fees and fines, the sheer abundance of paperwork is arguably the greatest downside to establishing an LLC. In fact, many intimidated business owners never make the leap precisely because they don’t want to take on this extra burden. Therein lies the value of offloading undesired tasks onto a specialty service.
Resident agent designation may not be the most paperwork-heavy part of this process, but it still occupies valuable time that you could easily dedicate to other important functions. A registered agent service takes care of mundane paperwork requirements while also delivering helpful notifications and confirmations.
There’s no need to handle the complications of Maryland LLC formation on your own. Our registered agent service can remove the burden from your shoulders so that you can focus on what you do best: Running your business.
Freed of resident agent obligations, you’ll have the flexibility and confidence you need to pursue exciting business opportunities. This could be the beginning of a fulfilling journey as a Maryland LLC.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.
Shai Shmarel started his life as a corporate lawyer before switching to being an SEO and Content Manager at Tailor Brands. He has experience in managing companies, rankings SERPs and covering a content-driven approach for all things legal, business and marketing. When off work, you’ll usually find him chilling with a cup of coffee and a book in the desert.