Legal Question in Business Law in Maryland

I would recommend that you hire a Maryland attorney to assist you with setting up your business, but here's some things you may think about doing:

1.) Organize an LLC. You should not choose a sole proprietorship, ever.

2.) Obtain a Federal Employee ID Number (FEIN). You will need this to open a bank account in your company's name.

4.) Open a bank account in your company's name so that you can spend money on your business and collect money for your business through that account. NEVER use your personal bank account to run your business.

5.) You will need to obtain a "Business License" from the city and/or county in which you live. You can probably find the application online.

6.) You should talk to your insurance company about what types of insurance might be appropriate for a cleaning business.

7.) You should speak with an accountant about what types of taxes you will need to file, and when.

Best of luck.******The above is for informational purposes only and does not create an attorney-client privilege.*******

You may need to go to an attorney, but you can probably just start off by visiting the U.S. Small Business Administration's website and going to your local library where you can find many books on how to start a business in Maryland. There may also be local organizations that offer classes to people who are starting small businesses in your area, so check on line. Good luck to you!

The above answers should help point you in the right direction! As a Maryland attorney who helps small business start-ups, I wanted to add a few additional comments:

To directly answer your question about an LLC v. a sole proprietorship, an LLC offers liability protection while a sole proprietorship has none. In any business where you anticipate going into people's homes (and risking chances of damage claims, etc) liability protection is important!

If you chose an LLC, you will have a few options in terms of taxation and may select a default classification so that you do not need to separately file corporate tax returns.

Note that organizing an LLC involves a few different steps. Many sites and books supply form Articles, but the Company will also want to make sure its internal governing documents are in order, that it holds appropriate meetings and maintains adequate records.

My firm offers Maryland small business start up packages for a flat fee that includes an attorney meeting to determine business goals, filing Articles, preparing governing documents, setting up state and federal tax and initial meetings. You are welcome to call my firm if you'd like further information - I offer a no cost initial 10 min telephone consultation.

Initially you may want to begin with a personal bank account opened separately, talk to your bank. This does not provide any liability protection.

An LLC provides protection where set up and run properly, which may include obtaining appropriate insurance to protect the company's interests. You will have to pay taxes on the property that the LLC owns and annual fees.

If you choose to operate as a sole proprietor then your tax obligation will not include the property taxes upon the LLC. Other fees are required to own an LLC.

All LLC's should have properly drafted Articles and By-Laws to provide full protection.

Accounting and tax services are available through my office.

Contact me to discuss.