Limited Liability Company FAQ – LLC attorney from MarylandWritten by ruxandra
Forming an LLC in Maryland it is not that hard and it can help your business a lot. This type of company is a structural organization which more and more businesses are using because it combines the pass-through taxation and the limited liability. In this article you will learn the most frequently asked questions an LLC attorney from Maryland receives to help you better understand the process and if this type of business is good for you.
How does the pass-through taxation work?
This process works as though all the losses and profits of the LLC go directly through the LLC owner. This means that once you (or other members) register your LLC in Maryland, you (and the other members) will have to pay the taxes for the company because it is not a separate tax entity.
What is the minimum number of people required for forming an LLC in Maryland?
There is no minimum amount of people stated in the Maryland LLC requirements to form this type of company. If you want, you can even register an LLC in Maryland by yourself, as a sole owner. In this case, you must be careful in your documentation and actions to ensure your LLC will not be considered a sole proprietorship. You can ask you LLC lawyer from Maryland for more details.
What is an LLC best for?
There are two types of situations when a business is better as an LLC.
- If a business is engaged in dangerous activities that make it likely to be sued or gather large amounts of debt.
- If the owner(s) of the business has many personal assets which he wants to shield from potential liability cases associated with the business.
What businesses can’t form an LLC?
In some cases, businesses that are engaged in trust, insurance, and banking are prohibited from being registered as an LLC. In addition to this, some states forbid certain professions, such as doctors, architects, accountants, lawyers, and others, from coming together and forming an LLC. You can ask your LLC lawyer to see if you can form an LLC in your profession.
What are the Maryland LLC requirements?
If you want to form an LLC, you can do this by following the next four simple steps.
- Business name. The business name you choose has to be available (and not taken by any other company) and respect the state rules regarding names.
- Articles of organization. Your LLC lawyer can file the paperwork, which is called “article of organization” and pay all the fees associated with filing the paperwork.
- Operating agreement. This will dictate how your LLC will be run, including the rights and responsibilities of all the members of the LLC.
- Publish a notice. In some states, you may be required to publish a notice to the public in the local newspaper showing the intent of forming an LLC.
For more information about forming an LLC, you can contact the best LLC attorney in Maryland at (443) 569-3950 or send an email at [email protected].