Create an LLC in Maryland

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  • 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
    • 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