projects/DemiSemi/LLC.md

Table of Contents

Forming an LLC in MD

https://www.northwestregisteredagent.com/ $39 + state fee

https://egov.maryland.gov/businessexpress/entitysearch https://www.northwestregisteredagent.com/llc/maryland https://www.northwestregisteredagent.com/incorporation-service-signup

https://www.youtube.com/watch?v=11ek100kamg

  1. Name LLC. Must include "limited liability company", LLC, or L.L.C.; must be distinguishable.
  2. Hire a registered agent (must be MD citizen. use agent instead of yourself for privacy reasons)
  3. File Maryland LLC Articles of Organization ($100 fee)
  4. Create LLC Operating Agreement.
  • Not required in MD but recommended
  • Legal document outlining ownership and operating procedures
  • Ensures both owners and employyes know what to expect
  • Includes:
    • organization - who members are, when & where business was created, ownership structure
    • management & voting structure
    • captial contributions - which members support LLC, future funding plans
    • distributions
    • membership changes - process for adding/removing members or transferring ownership shares
    • dissolution - when LLC may be dissolved
  1. Obtain Maryland EIN for LLC. IRS provides for free after forming company.
  2. Obtain additional permits and licensing
  3. File an LLC annual report

After forming LLC

  • Open business bank account. Separates personal from business assets
  • Get business credit card. Keep business expenses separate, helps tax purposes
  • Hire an accountant. Helps save money on taxes, avoids penalties or fines, track losses and profits
  • MD seller's permit - required if selling a physical product or digital goods/services
  • MD Employer Taxes - required if you have employees in MD
  • State income tax - individual tax rates in MD ranges 2% to 5.75%, due April 18
  • Report annual income to IRS - Form 1065 Partnership Return for most multi-member LLCs; form 1040 schedule C for most single-member LLCs.
  • File MD LLC annual report. LLCs must file annual report with Department of Assessments & Taxation. Can be done online or by mail (due April 15, $300 annually, late fee applicable)