Incorporation in Maryland

Find the right Business Incorporation attorney in Hagerstown, MD

In Maryland, businesses are allowed to incorporate, thereby becoming their own legal entities. When an incorporated business acts, whether it is to buy and sell property, agree to contracts or exercise legal rights, the process is then attributable to the business itself and not its owners. The Maryland Secretary of State receives and processes applications for incorporation, which must be submitted in compliance with local guidelines.

Benefits of Incorporation in Maryland

An incorporated business enjoys certain advantages, the most important being a limit of liability for the shareholders. The most shareholders can lose is the amount they invest in the business. Without incorporation, the personal property of business owners is at stake should the company become unable to satisfy its debts. Furthermore, a business that has not incorporated puts the unnecessary burden on creditors in the Hagerstown area to evaluate the credit worthiness of individual owners rather than that of the business, making loans more difficult. Finally, the ownership stake in a corporation can be apportioned into uniform slices, known as "shares" of stock. This makes it possible to sell ownership investments in more manageable slices.

Costs of Incorporation

These benefits come at a price. First, incorporation in Maryland may require a filing fee. Second, a corporation pays taxes just like any other entity. Disbursements to the owners of the corporation are also taxed as individual income, so this means earnings might be taxed twice. But this double taxation can be avoided with proper planning and help from a local Hagerstown lawyer.

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Life in Hagerstown

Hagerstown is the county seat of Washington County, located in the state of Maryland. It was founded in 1762 and has a population of about 40,000. It is the sixth largest city in the state and the largest city in the area known as Western Maryland. It is considered to be the industrial and commercial center of the greater Tri-State area, and is therefore locally known as "The Hub City".

Hagerstown received its reputation as a commercial nexus due to its heritage in the transportation industry, namely the railroad and airport industries. As a result today the city has several museums commemorating its rich beginnings, including the Train Museum. The city continues to promote development with the Neighborhoods 1st Program. The program encourages community improvement through participation in local government and planning.

Many unique events draw visitors and tourists throughout the year. For example, the city hosts fairs like Market in the Square, Colonial Family Fun Day, and Augustoberfest. Downtown Hagerstown is an ideal place for shopping, retail and recreation. It is also an excellent site to start a career, as many companies have made their home in the city.

Lawyers in Hagerstown typically practice in a wide range of legal fields and some specialize in particular areas of law. Hagerstown, Maryland lawyers usually file their claims at the Washington County District Court located in Hagerstown.

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