Legal Question in Business Law in Maryland

Re: What is an LLC and why establish one?

You would really need to have an in-person consultation with an attorney, and perhaps an accountant, to provide more details to determine what is best for your needs, as well as how much it would cost. A lot will depend on what it is you want the attorney to do for you.

As an individual investor in real estate, simply adopting an LLC form of organization does not provide as much protection as you might assume. If you are actively involved in managing the property, or are actively involved in managing the LLC, you could be held individually liable for any negligence or other wrongful acts.

I strongly recommend that you consult with an attorney immediately so that you can explore your legal rights, obligations, and options. If you wish to discuss retaining my services, contact me at:

[email protected]

(973)-605-8995

(*Licensed in New Jersey, Maryland, and Dist. of Columbia)

[Disclaimer: The above comments are not intended as nor should they be relied upon as "legal advice", which can only be obtained by personal consultation with a retained attorney; at which time the specific facts and circumstances of your case can be thoroughly evaluated. This reply is provided for general informational and educational purposes only, and does not create an attorney-client relationship with the responding attorney.]

Re: What is an LLC and why establish one?

LLC stands for limited liability company. It's sort of half way between an individually owned business and a corporation. It protects your non business assets from exposure to creditors, while avoiding the formality of a corporation.(keeping a corporate record book, issuing stock, etc.) There's a $100 fee to register an LLC in MD. I typically charge $450 to prepare the documents that are required to be filed with the state. There are no recurring legal fees.