Legal Question in Real Estate Law in Maryland

The decision on where and how to form an entity is best made after careful review of all the circumstances and consultation with an attorney.

Generally speaking an entity will need to be registered wherever it does business. If a small business only operates in a single state, in many cases it will make sense to form in that state. However, it is possible to form an entity under the laws of one state and register it as a "foreign" entity in another. Each state has its own laws governing entity creation (and fees vary from state to state). Sometimes differences in the way a state treats domestic entities will encourage one to form elsewhere.

This answer does not attempt to provide specific legal advice. I hope the general information helps.