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Maryland LLC – Annual Report (Personal Property Tax)


The following information is provided for
educational purposes only and in no way constitutes legal, tax, or financial advice. For legal, tax, or financial advice specific
to your business needs, we encourage you to consult with a licensed attorney and/or CPA
in your State. The following information is copyright protected. No part of this lesson may be redistributed,
copied, modified or adapted without prior written consent of the author. As we mentioned earlier, there are ongoing
requirements for your LLC with the State of Maryland. The first of these requirements is called
the Annual Report, and the second requirement is filing your LLC’s income taxes. These can be quited complicated and at the
end of this Lesson we will recommend that you get help filing these forms. However, we want to give you an overview,
so that you have a basic understanding of the requirements. In most states, the purpose of the Annual
Report is to keep the State updated with your LLC’s contact information. However, Maryland does things a little bit
differently. Their Annual Report is called the Personal
Property Tax Return and it is used to tax personal property owned by the LLC. Personal property includes furniture, machinery,
equipment, tools, fixtures, inventory, and anything else that is not real property. Real property refers real eState or land. Another way to think of personal property
is anything that is not permanently attached to the ground. In order to file your Personal Property Tax
Return, you will first list all of your LLC’s personal property and its estimated value. Then you’ll need to list your LLC’s gross
sales, as well as a balance sheet that shows your LLC’s assets and liabilities. Once finalized, you will mail your Personal
Property Tax Return to the State along with the Filing Fee. The Filing Fee and your Personal Property
Tax Return must be filed every year by April 15th. You may also be charged an additional tax
depending on the value of your LLC’s personal property. If your LLC owes additional tax, the county
will mail you a bill shortly after April 15th and tell you when this additional payment
is due. Below this video, you will find the Filing
Fee amount and the accepted forms of payment. If you don’t file your Personal Property Tax
Return before the April 15th deadline, the State will eventually dissolve (aka shut down)
your LLC. The State takes this requirement seriously,
so it’s important that you file your Personal Property Tax Return on time every year. the State will mail you a notice each February
reminding you to file by the April 15th deadline. However, we recommend that you keep a repeating
reminder on your calendar in case you don’t receive the State’s reminder notice. We know that this information not only sounds
confusing, but also sounds like a lot of work. The truth is – it is a lot of work. Determining your personal property depreciable
value, commercial inventory, depreciation rates, total gross sales, and creating the
balance sheet can be very challenging and complicated. Furthermore, if you make any mistakes, that
can create financial issues for you and your business. For this, reason we recommend you hire a tax
professional to take care of this for you every year. This segues nicely to the next part of this
Lesson. Besides owing tax on your personal property,
you are also required to file State income taxes every year. Even if your LLC has no income or you have
no business activity, you are still required to file this additional return each year. Again, calculating your tax obligations in
Maryland – especially if you have employees – can be complicated and if done improperly,
can negatively impact your LLC. Taxes can be challenging and we recommend
you can help from a tax professional once your LLC is formed. Hiring a tax professional will not only help
you keep your LLC in compliance with the State, but will also give you an advisor to go to
for other business questions. Whether your business turns a profit or loses
money, you will still need to file tax documents every year. This is not something to be taken lightly. If you want to run a serious business and
not get in trouble with the State, you should get assistance in filing your taxes properly. How to Find a CPA or Accountant. A referral from a friend or someone else you
trust is usually the best way to find someone to do your taxes. You can also ask co-workers, acquaintances
from local clubs organizations, your neighbors, and other business people. You could also ask your Twitter, Facebook,
LinkedIn, and other social media friends and maybe find a trusted name from a friend of
a friend. It’s as easy as typing in your social media
accounts “Hey, I just formed an LLC. Does anyone know a good accountant?” If you can’t get a personal referral, then
try doing a search online for “accountant” or “certified public accountant” on Yelp.com
or Google.com and looking for someone with a strong track record. You should want someone who’s a good fit for
your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as
well as professionally. It’s okay to take your time to find the right
person. We recommend talking with at least 2-3 people
before making your final decision We hope you find a great tax professional. And that concludes this Lesson.

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