Legal Question in Business Law in Maryland

My partners and I want to open a business in Maryland. I contribute ideas and labor. My first partner contributes labor and 20K. My second partner contributes labor. I will own 60% of the firm. My partners will own 20% each. I think the best way to structure this will be an LP. Is that right?

Since I don't contribute money to this partnership, do I have to pay any tax on the 20K the first partner contribute?

Do you have a sample LP form with similar structure?

Thank you!!!


Asked on 9/02/09, 5:04 pm

1 Answer from Attorneys
Robert Beatson, II Law Offices of Robert Beatson, II

There are a number of different types of legal entities that can be used for a business structure under MD law. There are many variables and fact-specific issues (business law, tax, intellectual property, etc.) that need to be carefully worked through to properly form the business under Federal and MD law, protect the business assets, provide limited liability protection for the business owners/participants, etc. An experienced business law/tax attorney should be able to handle this under Federal and MD law. Please note that my legal services are available only with a signed engagement agreement in accordance with the Maryland Rules of Professional Conduct applicable to attorneys licensed in the state of MD. If I can be of any help to you, contact my offices as I would be pleased to provide legal/tax support.

Sincerely,

Robert Beatson II; 9-7-2009, 9:10 p.m. EST

Law Offices of Robert Beatson, II

9818 Glynshire Way

Potomac, MD 20854

Email: [email protected]

Website: www.beatsonlaw.com

Licensed to practice law in DC, MD, VA, and NY

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Answered on 9/07/09, 9:12 pm


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