Create an LLC in Maryland
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General
- Maryland Business Express
- USPS P.O. Boxes]
- 20% fail within 1st year, 50% fail in 5 years!
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