Legal Question in Business Law in Maryland

Re: sole propreitorship or llc

I would consider either an llc or an s-corporation depending on what you future growth plans are. S-corporations can be very restrictive, in that generally they can only have one class of stock. If you plan on bring in more people, you may be better off in an llc. Also a single member llc is taxed as a sole proprietorship. You simply include schedule C on the back of your annual tax returns.

I would never advise anybody to do a sole proprietorship, because all liability for the acts of the business passes through to you personally.

A credit repair business can be a high liability business. You may be better off establishing the business in Nevada rather than Maryland. Nevada allows you to put a lien on your business' assets. If you are sued and the plaintiff gets a judgment, the plaintiff becomes a second in line creditor. A lien creditor takes priority over a judgment creditor generally.

Re: sole propreitorship or llc

I would consider either an llc or an s-corporation depending on what you future growth plans are. S-corporations can be very restrictive, in that generally they can only have one class of stock. If you plan on bring in more people, you may be better off in an llc. Also a single member llc is taxed as a sole proprietorship. You simply include schedule C on the back of your annual tax returns.

I would never advise anybody to do a sole proprietorship, because all liability for the acts of the business passes through to you personally.

A credit repair business can be a high liability business. You may be better off establishing the business in Nevada rather than Maryland. Nevada allows you to put a lien on your business' assets. If you are sued and the plaintiff gets a judgment, the plaintiff becomes a second in line creditor. A lien creditor takes priority over a judgment creditor generally.