I want to convert my sole proprietorship in Colorado Springs to an LLC. Which entity offers the best liability protection and tax treatment under Maryland law?
For most Colorado small businesses an LLC is the right default — flexible governance, pass-through tax, real liability protection if you maintain corporate formalities. S-corp election starts paying once profits clear roughly $75k (self-employment tax reduction on the reasonable-salary-plus-distribution split); C-corp is only worth the double-tax hit if you're raising VC.