John R Orrick JR’s Answers

John R Orrick JR

Bethesda Business Attorney.

Contributor Level 3
  1. If I start an LLC in MD and don't do any business do i still have to file the $300 personal property return?

    Answered almost 2 years ago.

    1. Philip Leon Marcus
    2. John R Orrick JR
    3. Nathaniel C Fick Jr
    3 lawyer answers

    Agree with other commentators that you do have to file an annual report and pay the $300 minimum for any LLC formed in Maryland. If you are concerned about paying this amount, but want to conduct business under a unique name, you can file with Maryland State Department of Assessments and Taxation for a trade name. Unlike an LLC, the business owner will enjoy no limited liability protection, but it may be a less expensive option at least until the business starts to take off, at which time...

    3 lawyers agreed with this answer

  2. Help on filing for obtaining an EIN

    Answered about 2 years ago.

    1. John R Orrick JR
    2. Philip Leon Marcus
    2 lawyer answers

    I would caution against filing as an S corp to "avoid" self-employment taxes. The IRS is aware that there are many advisors to closely-held businesses that tout this as an advantage of S corps; the fact is that unless the owners are paying reasonable compensation which is subject to self-employment taxes and clearly document the distributions to be dividend income rather than compensation, S corps do not provide any advantages over LLCs with regard to self-employment tax. Further, S corps...

    Selected as best answer

  3. Hello,This is a slight variation of the typical S-Corp vs LLC question. I formed a LLC and wondering if I should file form 2553

    Answered about 2 years ago.

    1. Steven J. Fromm
    2. John R Orrick JR
    3. Theodore B Godfrey
    3 lawyer answers

    I agree with the other reply that alot will depend on your individual situation. However, to address your last question about additional regulatory burden, yes, there is a large difference in electing S corp status over staying as a SMLLC which is the need to prepare and file federal and state income taxes for the entity every year. As a SMLLC, the entity witll be disregarded unless an election to be taxed as a corp or S corp is filed. This means that the profit and loss of the entity are...

    1 lawyer agreed with this answer

    1 person marked this answer as helpful

  4. New LLC. When to file Annual Reports

    Answered about 2 years ago.

    1. John R Orrick JR
    2. Nicholas Bernard Proy
    3. James W Claflin Jr
    3 lawyer answers

    In Maryland, business entities are required to file Form 1, Personal Property Return, each year to maintain their status in good standing. Generally, you will receive statements from SDAT for personal property reports which are due on April 15, unless you request automatic 2 month extention until June 15. The return lists the personal property owned by the entity as of 12/31/2011. If you formed the LLC in 2012, you would not need to file an annual return/personal property return until April...

    1 lawyer agreed with this answer

  5. How can a minority share-holder of a small business force the company to hold its annual meeting? The charter/by-laws require

    Answered about 2 years ago.

    1. Philip Leon Marcus
    2. Nicholas Bernard Proy
    3. John R Orrick JR
    4. Robert John Murillo
    4 lawyer answers

    If the minority stockholders owns 25% or more of the voting shares (or can get together a group of stockholders which together own at least 25% of the voting shares), then the minority can force the corporation to call a special meeting under Section 2-502 for the purpose of addressing the specific issues that are listed on the request by the stockholders.

    1 lawyer agreed with this answer

  6. Is it possible for a for-profit business to accept (and be significantly based) on donations?

    Answered about 2 years ago.

    1. Philip Leon Marcus
    2. Mark William Oakley
    3. John R Orrick JR
    4. Pamela Koslyn
    4 lawyer answers

    Not clear what you are referring to by "for-profit" business. You can certainly form a for profit business, but as noted by other comments above, there may be little incentive for donors to provdie contributions. On the other hand, if you qualify as a Section 501(c)(3) nonprofit, your donors can get tax deductions for their contributions. There are ways to achieve Section 501(c)(3) status from the IRS for organizations that qualify as a "Qualified Amateur Sports Organization." An...