Maryland. We owe so many of our firsts to you. You gave us the first Naval Academy, the first school, the first dental school, the first flight of a hot air balloon and the first state to deploy Workmen's compensation in the United States. You gave us Babe Ruth. Annapolis was once our capital, and when Washington DC took that privilege you gave some of your land for it. You're an awesome powerhouse of a state, Maryland. Thanks.
Maryland is also a mighty state in which to register your small escort business, and in this article you'll find clear step-by-step advice on how to do just that. For more information on why it's vitally important to register your business, refer to our article Don't get busted for tax evasion: Why registering your escort business is the only option.
For information on what terms you legally can and cannot use, refer to our article The fine legal line between escort and prostitute: some strategies for an escort to stay out of trouble.
For some helpful advice on picking out a business name, visit Business.gov
Step four: Register your business / business name
Sole Proprietorship:
In Maryland you are not required to register your sole proprietorship escort business as a separate business entity: because the business is you, it is not recognized as a separate business.
You are also not required to register your business name if it is your name and service: "Jane Doe's Escort Service". However, if you take on any other form of a DBA name, you must register a Trade Name with the state of Maryland. You can get more information by contacting the State Department of Assessments and Taxation—Trade Name Search and Registration by calling (410) 767-1340 or visiting online at Maryland Department of Assessment and Taxation.
For more information on if taking on a DBA is a good choice for your business, refer to our article Do I want to be a sole proprietor?
Partnership:
In Maryland you are not required to register your general partnership business as a separate business entity. However, you should come up with a partnership agreement and will have to file for a tax ID with the state and file your business taxes along with your personal taxes, so having your books in order is very important. More on that below.
You are also not obligated to register your business name in Maryland if it is the collected names of the partners outlined in your partnership agreement. But if you choose to take on a DBA name you'll have to register a Trade Name with the state of Maryland. You can get more information by contacting the State Department of Assessments and Taxation—Trade Name Search and Registration by calling (410) 767-1340 or visiting online at Maryland Department of Assessment and Taxation.
Corporation:
To register your escort corporation in Maryland you'll need to file your Articles of Incorporation with the Maryland Department of Assessment and Taxation or download the form directly. You'll include your basic business management, board and stock information and include a $120 filing fee for this form.
LLC:
To register your escort LLC in Maryland, you'll need to file your Certificate of Organization with the Maryland Department of Assessment and Taxation or you can download this form and instructions directly. You'll include basic information about the purpose and contact information for the company, as well as a $100 filing fee (other fees are articulated in the instructions).
Step six: Register for your federal and Maryland state taxes
There are a few basic types of taxes small businesses in Maryland may register for.
- Sole Proprietors and General Partnerships: As a sole proprietor or general partnership you'll have to register for a Maryland tax number. You can do so at the Maryland Department of Assessment and Taxation (http://www.dat.state.md.us/sdatweb/sdatforms.html#entity) or download the form directly. You'll also have to file a Personal Property Return (form AT3-51) with your yearly taxes. You can find the current form and more information at Maryland Department of Assessment and Taxation.
- Pass-Through Income Taxes: Sole proprietors, partnerships and LLCs will file their business taxes as Pass-Through taxes, which are filed with a 510 form. More information and current forms can be found at Maryland Comptroller—Maryland Taxes.
- Business Taxes: Corporations in Maryland must file a form-500, available at Maryland Business—Corporate Income Tax.
- Unemployment Insurance: All businesses with employees pay unemployment insurance to safeguard the state's unemployed. You can get more information and file online at the Maryland Department of Labor, Licensing and Regulation.
- Withholding Taxes: Employers must withhold taxes from employees for their personal income taxes. More information can be found and online registration is available at Comptroller of Maryland—Maryland Taxes.
- Workers Compensation: If you have employees, you'll have to pay Worker's Compensation. More information can be found at the Maryland Workers' Compensation Commission.
- Self-Employment Taxes: If you own and operate your business and are not paid as an employee, you'll need to file your own self-employment taxes for social security and Medicaid. This is particularly true for sole proprietorships, general partnerships and LLCs. You can find this Schedule C / 1040 form and get more information at IRS.gov.
The business tax situation in Maryland cannot be fully covered in this article, as business structures are taxed more specifically than in other states. It is highly recommended that you familiarize yourself with local resources and consult a business accountant if you are unsure as to how to file.
Find more information on taxation in Maryland at
Step seven: Get necessary licenses and permits
Chances are you won't need any licenses or permits at the state level in order to function as an escort service in Maryland, but you will have to be registered for state taxes before you can apply for any permits at the local level.
After you've registered for taxes, you can find your local government at Comptroller of Maryland—Clerks of the Circuit Court.
For more information about registering an escort business in Maryland, consider the following online destinations:
Find out how to register an escort business in each state of the USA.
Related resources:
Please note: Dating.com is not a legal service, nor are we tax advisors or accountants. We do offer you what we consider our best advice, but if at all in doubt, please consult a professional.
