You decided to start your own business. You have the idea and entrepreneurial set of mind, but need to know how to make your idea a reality?

Maryland Capital Enterprises is your #1 resource that will guide you throughout the whole process, from having only an idea to opening your door for first customers.

We put together this checklist so you have all the resources links, contact information and step-by-step procedures for opening a new business in one place. Follow the 10 step-by-step guide below to make sure you start your business right and don’t hesitate to contact our Business Counselor if you have any questions or need assistance along the way.

You can also visit Maryland Business Portal which provides tools and resources to help your plan, start or expand your business.

download the detailed PDF version of the following checklist.

1. Develop a Business Plan

Consider how you will start the business (i.e. new business, acquire an existing business or franchising). You can develop a business plan yourself, receive assistance from the MCE staff, or get a consultant to help you with it.

download Business Plan template (Word)
download Start-Up Cost List template (Excel)
download Cash Flow Projections for 3 years template (Excel)

2. Choose Your Business Structure

Determine which form of business structure is most appropriate for your operations. The four most common forms of business structure are: Sole Proprietorship, General Partnership, Limited Liability Company (LLC), Corporation.

download the PDF file about business structures.

3. Analyze Your Credit

If you need start up funding, be prepared to understand, analyze and explain your credit history. To receive your free copy of your credit report go to www.annualcreditreport.com

The free report does not include your credit score.  This will have to be purchased for a minimal fee ($6.00-$10.00).

The following are the 3 credit agencies in the USA: Transunion, Equifax and Experian.

4. Select and Register Your Business Name

Registering the legal name of your business is a requirement for every business structure except sole proprietorship and general partnership. For help selecting a business name that will attract customers, visit How to Name Your Business guide.

In addition to that you may also register a Trade Name. The business trade name may be different from the registered name. Registering the legal name is a requirement, registering the Trade Name is optional.

To register for a Corporate Name or Trade Name visit www.dat.state.md.us

5. Registration Forms and Taxation

New businesses should contact the IRS to register for the following: employer identification number, income tax - business and employee withholding, social security, federal unemployment insurance, and other federal taxes. 

The IRS provides business kits for 3 types of businesses: Sole Proprietorships, Partnerships and Corporations. Click here for details.

EIN - Employer Identification Number

You must have an employer identification number (EIN) before you can register your business, unless you are a sole proprietorship or applying for a Sales and Use Tax License only and do not have an EIN. The EIN is also known as a federal tax identification number, an Employer Tax ID and Form SS-4:

Guide to the Employer Identification Number

Apply for an EIN Online

Combined Registration Application - State Tax

Register for State Taxes
Maryland provides one-stop business registration online at www.marylandtaxes.com. This application meets the requirements for most state taxes, including sales and use tax, income tax withholding, and the unemployment insurance tax. Other local taxes in Maryland require no additional registration.

Business Tax Registration

Tax Information and Forms

Personal Property Tax Information
In Maryland, businesses must pay an annual tax based on the value of their personal property (furniture, fixtures, tools, machinery, equipment, etc). The SDAT automatically registers corporations and LLC's for this tax when these legal entities form. All other businesses (sole proprietorships and general partnerships) are required to obtain an identification number by registering with the SDAT  http://www.dat.state.md.us/ and file an annual personal property return.

6. Check County and Local Zoning Requirements

Choose a location properly zoned for your business activity. Pay attention to business signs and parking at the location. If operating a business from home, consider whether your community or county restrict home-based businesses.

download the PDF file for phone numbers to the planning and zoning departments within MCE’s service area.

7. Check State and Local Licensing Requirements

Maryland's Business License Information System (BLIS) offers business owners a 24 hours a day source from which to determine many of the state permits and licenses that may be necessary to operate their business.

Maryland Licensing Information - Info about business and occupational licenses required by the state.
Guide to Business Licenses and Permits - tools and resources to help you determine your licensing requirements.

download the PDF file to find out if you need to have any additional licenses 

8. Business Insurance

Every business must have Workmen's Compensation Insurance  and Unemployment Insurance.  It is required of every employer in Maryland for work-related injuries. This coverage may be obtained from a private carrier, the Injured Workers Insurance Fund (IWIF) or by becoming self-insured.

Click here for a directory of licensed insurance companies

9. Banking/Internal Controls & Bookkeeping

Open a business bank account, separating business and personal finances. Save such documents like receipts, bank statements, and taxes for 10 years. Bookkeeping can be maintained within your business, or you can hire an accountant or an accounting service to keep necessary business records for you.

10. Employer Responsibilities

If you are a new employer, this Ten Steps to Hiring Your First Employee will walk you through the legal steps you must take to hire your staff.