Small Liability One of the most common business structures for entrepreneurs and small business owners is the corporation. Because of its adaptability and security, LLCs are now a popular choice for many enterprises. Can I own more than one LLC, though, is an issue that frequently arises with business expansion or the need for diversification?
Yes, you are allowed to hold multiple LLCs. In actuality, having several LLCs has many advantages. Protecting the assets of each company from the liabilities of the other is one of the key advantages of having separate LLCs. The assets of the other company will not be impacted if one company is sued. Additionally, managing various businesses, each with their own operations, personnel, and money, is made simpler by having multiple LLCs.
It’s crucial to understand the charges involved with registering and obtaining a company license in Maryland if you’re thinking about owning several LLCs. In Maryland, registering a business name costs $25, and submitting articles of organization costs $100. Furthermore, the price of a business license in Maryland varies by county and type of business. The price of a business license in different counties can range from $25 to $300.
Even if one of your LLCs is not making money, it must still file taxes. The LLC will submit a Form 1065, which details the earnings, credits, and deductions of the company. Although the LLC does not pay income tax, the business’s gains and losses are transferred to the individual owners, who then record them on their individual tax forms.
The amount of business tax in Maryland fluctuates depending on how much revenue the company generates. The local tax rate ranges from 0.25% to 3.2%, and the state corporate income tax rate is 8.25%. Additionally, LLCs must pay the state of Maryland a $300 filing fee each year.
In conclusion, having several LLCs is a real alternative for business owners and entrepreneurs. It offers protection for each firm and makes managing various businesses simpler. However, it’s crucial to take into account the price of Maryland business license registration and registration before creating any more LLCs. It’s also critical to comprehend each LLC’s tax obligations and documentation needs.
Professional Limited Liability Companies (PLLCs) are accepted in Maryland. For licensed professionals, such as doctors, lawyers, and accountants, a PLLC is a specific kind of LLC. PLLCs must comply with any additional licensing or regulatory requirements that pertain to their particular profession in addition to the same filing requirements as normal LLCs in Maryland.