Difference between revisions of "Create an LLC in Maryland"

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(Created page with " == General == * [https://businessexpress.maryland.gov/ Maryland Business Express] * [https://poboxes.usps.com/ USPS P.O. Boxes]] == Business Plan == * What is the product o...")
 
 
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* [https://businessexpress.maryland.gov/ Maryland Business Express]
 
* [https://businessexpress.maryland.gov/ Maryland Business Express]
 
* [https://poboxes.usps.com/ USPS P.O. Boxes]]
 
* [https://poboxes.usps.com/ USPS P.O. Boxes]]
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* 20% fail within 1st year, 50% fail in 5 years!
 +
 +
== Structures ==
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* Sole Proprietorship
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** You get all profits, and you assume all debts
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** Just licenses & permits
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* Partnership
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** General Partnership
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** Limited Partnership
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*** Only 1 general partner with all control
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*** Bankruptcy, lawsuit
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*** Profits are passed through to regular tax returns
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*** Must pay self employment
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** LLP
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*** not responsible for actions of the other partners
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* LLC
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** Pass through entity
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** Takes advantage of corporate and partnership
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** Protects personal assets
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** Depends on you you write your checks for the business - e.g., write a check for car payment using business account, then the car becomes business asset
 +
** self-employment medicare soc sec state federal taxes.
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** Stay in good standing as long as you file every year, $300 filing fee!!!!
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** When member leaves LLC some states may require the LLC to be resolved.
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** Good if you have personal assets you want to protect
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* Corporations (S, C, B)
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** pays income tax on profits, so they are taxed twice
 +
 +
== Business Licenses ==
 +
* Jurisdiction (Fees are dift)
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** Federal
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** State
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** County
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* Call clerk of the court of the county you want to start the business in
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* WHAT IS EXPIRATION DATE
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** easier to renew than to apply for new one, e.g., liquor license
  
  
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* what type of demand exists
 
* what type of demand exists
 
* Who is your target customer
 
* Who is your target customer
 +
* What is startup costs
 +
* do expenses 3-6 months out
 +
* What is cash flow

Latest revision as of 14:52, 22 September 2022

General

Structures

  • Sole Proprietorship
    • You get all profits, and you assume all debts
    • Just licenses & permits
  • Partnership
    • General Partnership
    • Limited Partnership
      • Only 1 general partner with all control
      • Bankruptcy, lawsuit
      • Profits are passed through to regular tax returns
      • Must pay self employment
    • LLP
      • not responsible for actions of the other partners
  • LLC
    • Pass through entity
    • Takes advantage of corporate and partnership
    • Protects personal assets
    • Depends on you you write your checks for the business - e.g., write a check for car payment using business account, then the car becomes business asset
    • self-employment medicare soc sec state federal taxes.
    • Stay in good standing as long as you file every year, $300 filing fee!!!!
    • When member leaves LLC some states may require the LLC to be resolved.
    • Good if you have personal assets you want to protect
  • Corporations (S, C, B)
    • pays income tax on profits, so they are taxed twice

Business Licenses

  • Jurisdiction (Fees are dift)
    • Federal
    • State
    • County
  • Call clerk of the court of the county you want to start the business in
  • WHAT IS EXPIRATION DATE
    • easier to renew than to apply for new one, e.g., liquor license


Business Plan

  • What is the product or service you'll provide
  • what type of demand exists
  • Who is your target customer
  • What is startup costs
  • do expenses 3-6 months out
  • What is cash flow