Legal Question in Business Law in District of Columbia

I am starting a Real Estate Brokerage and am a licensed Broker in MD & DC. I want to setup an LLC but don't know if I should file paper work in DC or MD? Not sure which would be more beneficial as far as costs, reporting, etc...? Also, would I purchase E&O for one or both areas? Company I worked for just charged me and I don't know what they did.

Thanks


Asked on 10/25/11, 12:45 pm

1 Answer from Attorneys
Torrance Colvin The Colvin Law Firm

Good question, but there are quite a few variables not addressed. Obviously there is a different tax rate, but they also have different reporting requirements. You haven't indicated whether you will be doing the majority of the work in one jurisdiction or the other. You also haven't indicated whether you live in DC or MD (or somewhere else). Hard to provide you advice without you being extremely specific re: your situation.

As for E&O that is a little easier to answer. You should have a policy that covers your work in both jurisdictions. The increase in premiums for adding a second area shouldn't be too excessive in comparison with the peace of mind that comes with it.

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Answered on 10/29/11, 2:05 pm


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