If the thought of forming a corporation is overwhelming, but you are concerned about protecting some of your personal assets, you may want to start a limited liability company, affectionately known as a LLC. (When I first looked into starting a LLC, I called my state government to find out what I needed to do and made the mistake of calling it a limited liability corporation. Don’t make the same mistake I did. Apparently, it really upsets some people. The woman I was talking to literally yelled “No!” into the phone. It took me a minute to figure out that her loud response was to the use of the word corporation.)

A LLC requires very little paperwork and, with a bit of patience, you can file it yourself. However, as with anything that has any legal ramifications, you should take a minute to call your lawyer to be sure this is the right thing for you and your business. Most LLC’s can be formed cheaply. However, in Maryland at least, you will need to pay three times that amount each year to keep your LLC active. I’d say it’s a good idea to ask for a breakdown of what you will need to pay to establish the company and what fees are required next year so you don’t end up with any nasty surprises.