Should I file as a sole proprieter or something else
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Should I file as a sole proprieter or something else
I want to start a t-shirt/apparel brand
that I opperate from home along with a
website page. Should I file as a sole
proprieter in the state of Maryland or
another business type?
Asked on February 27, 2018 under Business Law, Maryland
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Form an LLC (limited liability company). An LLC will, as the term implies ("limited liability") protect your personal assets (e.g. home; money in the bank) from most business-related liability or obligations, such as if you fail to pay a supplier, breach a contract, infringe on someone's intellectual property (e.g. trademark or copyright), etc., the same way a corporation does. (If you are a sole proprietor, by contrast, your personal assets are at risk from business debts or liabilty.) However, it involves less paperwork and formalities than a corporation--i.e. it is simpler. It does *not* involve "double taxation"--profits and losses drop directly to your own tax return, and are taxed with any other income you have; however, under the new Trump tax plan, you may be entitled to a significant deducation due to having an LLC (check with your tax provider).
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.