Operating as a sole proprietorship in Maryland is the simplest way to start a business. You are the business, and there's no legal distinction between you and your company. This means fewer formalities, less paperwork, and lower startup costs compared to forming an LLC or corporation. However, this simplicity comes with the significant drawback of unlimited personal liability for business debts and obligations. If your business is sued or incurs debt, your personal assets—like your home or savings—could be at risk. This guide will walk you through the essential steps for registering and operating a sole proprietorship in Maryland, and when you might consider a more formal business structure.
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