Business Start-Ups

 If you're looking to go into business for yourself, you've found the right place! 

For an attorney consultation about starting your business:  

Entity Types in Maryland:

Contact the firm for a free brochure on business start-ups.                          

The main types of business structures in Maryland are:                       

• Sole Proprietorship
• Partnership
• Limited Partnership
• Corporation (including subchapter S corporations and close corporations)
• Limited Liability Company (LLC)

           Start-Up Basics

• Entity Selection.  An attorney can discuss the pros and cons of the various business types and help you select the one appropriate for your business. 
• Trade name research. Our office will research the availability of the trade name you select. 
• File corporate documents. Many internet sources and books offer pre-printed forms for an entrepreneur to fill out and file with the appropriate state entity. Even if a business person selects the right form to match their business type, it takes more than a form to properly start a corporation.  If proper formalities are not followed, the business owner may find herself without the protection of the corporate status. 
• Tax set up. Most businesses will need to obtain a federal EIN (employer identification #) and file a Combined Registration Application with the state government. Many small corporations elect "subchapter S" federal tax status. As a part of our service to new businesses, this firm helps file these forms. (Find out more about what taxes your small business might need to file here)
• Stock issuance. If you select an organizational type with stock, this firm will issue the appropriate stock certificates. (For entities with members, membership certificates will be issued).
• Corporate record book.Every organization needs the appropriate documents that describe how the company is set-up and identify the officers of the corporation and their respective powers and duties. This firm's package includes Organizational Minutes, and By-laws or Operating Agreement, depending on the entity type selected.

The Books - Key Business Documents

The Books Lenders will require balance sheets and income statements.  If you don’t have these, STOP!  Get your financials in order before you think about asking someone else for money.  What is the status of the business’s books?   If your records are not up-to-date or are in poor condition, don’t waste your time applying for a loan!  Get your records in order first! 

Do you have a business plan?  Not only do business plans help keep you on track, but they also may be required by a lender.  If you don’t have a plan and don’t know where to start, the Small Business Administration offers good tips on how to write a plan: 

FAQ: How much does it cost to start my own company? My neighbor said it cost only $99.95 on the internet to get Articles of Incorporation, while my college roomate paid some $5,000.00 to start a Maryland company and incorporate.  What gives?  

Attorney Answer:  The State charges standard filing fees to accept Articles of Incorporation or Articles of Organization.You will have to pay those fees whether you hire someone to prepare the forms or file yourself.  You can often find cheap pre-printed Form Articles, (online or in a bookstore) but that is not all it takes to start a business!  This firm offers small businesses a flat fee for basic business start-up which includes researching trade name availability, tax set-up, your organizational meeting and a company record book.  Read more to find out the most cost effective solution for YOUR business that will still give you the protection you seek.

Small Business Loans

Ask a few small business owners about their greatest challenge in the first 5 years of business, and inevitably the answer will be – cash flow.  Even if money is not your primary motivation, it is a huge deal.  Some folks market to the hungry entrepreneur by suggesting that “thousands of dollars” of “Free government grant money” is available.  Two clichés are appropriate here – there is no such thing as a free lunch and if it sounds too good to be true, it probably is!   In a few fields, a very limited amount of grant money may help fund planned projects, but generally speaking there is no magic pot of cash available to would-be business owners.   

The savvy entrepreneur knows all this.  You likely understand that you will need a sufficient amount of cash to fund your business until it gets rolling.  So, if you know you probably need a loan, how do you get one? 

Tip:  Getting money for your business start-up is much easier if you have followed all the formalities and have your books in order.  Question for Business Owners:  Do you have an up-to-date company record book?

Know your business well!  Lenders will likely ask questions such as:  Have you involved a lawyer and accountant?   Getting professional advice minimizes the risk of making big business blunders. How we help small businesses – there is much more to running a business than filing wit the state. 

When this firm helps a new business get started, you will receive a corporate record book with Articles of Organization or Articles of Incorporation, By-Laws or Operating Agreement and tax forms.   The advice of a qualified accountant can get you on the right track with financial records.  For the budget conscious, many software programs provide do-it-yourself accounting software, and you can hire an accountant to review your records monthly or quarterly and to assist with tax preparation.   How quickly do your customers pay you? Have you been able to pay your current bills on time? How much have you allowed for bad debts? (It is highly unrealistic to expect that 100% of customers will pay you fully). How much money is going to buy merchandise? Can your goods be sold at full price?

Professional Answers & Representation Relevant to Your Needs.   410-216-7000