Many partners quietly wonder what the right way to pay themselves is (i.e. draws, salary, or distributions - and what does the IRS expect?). For Maryland law firms the answer depends heavily on your entity type and tax classification. Getting this wrong can lead to unexpected tax bills, penalties, or messy partner disputes. 1. Start with Your Firm’s Entity and Tax Status Before you decide how to pay partners, you must know how your firm is taxed: LLC taxed as a partnership (m

If you run a nonprofit in Maryland, May often brings a big question: “We’re tax‑exempt, so do we really need to think about taxes right now?” For many organizations, the answer is yes, especially around federal Form 990 deadlines and Maryland compliance filings that cluster in the spring. Below are a few key issues nonprofit boards and executive directors should keep on their radar each May: 1. Form 990 and “we don’t pay taxes” myths Most tax‑exempt nonprofits must file an an

If you run a law firm in Germantown, Rockville, or anywhere in Montgomery County, you have probably wondered: “Are we handling our firm’s taxes the right way?” This matters more than most attorneys realize. Law firms often deal with partnership income, owner draws, and complex compensation structures, all of which have specific Maryland and federal tax implications. Key Tax Areas Law Firms Must Get Right Entity structure and partner taxation Many Maryland law firms operate as

“I run a small business in Maryland. Do I really have to make quarterly estimated tax payments, or can I just deal with it at tax time?” Many Maryland business owners ask this, especially LLC owners and contractors who don’t get taxes withheld from a paycheck. The short answer is that if you expect to owe tax when you file, the IRS and the State of Maryland generally expect you to make tax payments during the year, usually through quarterly estimated tax payments (and not jus

If you run a Maryland multi‑member LLC or partnership, your annual federal partnership return—Form 1065—drives everything from partner Schedule K‑1s to Maryland pass‑through entity (PTE) filings. Here’s a concise overview of what to file, when it’s due, and how to keep Maryland‑specific requirements on track so you avoid penalties and protect cash flow. What is Form 1065—and who must file? - Form 1065 reports your partnership’s income, deductions, credits, and other items. It