The legal business form of the LLC, or Limited Liability Company, offers the benefits of several other traditional business forms. An LLC has the same advantage of limited liability that a corporation does, but without being taxed as its own entity. Instead, it's taxed more similarly to a sole proprietorship or partnership. Like a corporation, the LLC can also have an unlimited amount of shareholders, called members. Unlike a corporation however, if a member dies, files for bankruptcy, or otherwise leaves the LLC, the company is dissolved. Business forms with limited liability have existed for hundreds of years, but the modern LLC became more popular in Maryland since the legislature enacted laws authorizing its formation.
Can My Business Be Formed as an LLC?
Businesses in Maryland can organize using whatever form they choose. The office of the Secretary of State is the organization that accepts filings by those who want to open LLC's. Fees are often charged for opening LLC's, however, and Maryland law determines the costs for creating LLC's. You should consider these laws when deciding whether to organize your business as an LLC. Finding the right business structure for your company may take some effort, but it will ultimately make your business more profitable.
Can I Change the Form of My Business to an LLC?
Businesses in Prince Georges County may sometimes change form. A company is eligible for conversion to an LLC if its situation falls under circumstances that are detailed by Maryland law.
How Can an Attorney Help?
A lawyer versed in Maryland business law will be able to advise you of the benefits and costs for forming and maintaining a LLC.