You’ve got a great new business idea. Your family and friends are full of encouragement and hope – and some of them have already pulled out their wallets wanting to get in as initial investors. Before taking the money, you should stop, take a step back, and develop a plan for how you’re going to form, fund and operate your new business venture.

1. THE ABC'S OF
BUSINESS FORMATION
October 22, 2020
Setting Up Your Company for Success

2. Today's Agenda
Partnership
Prince George's County Economic Development Corporation Overview
Introduction of Speaker
Lerch, Early, and Brewer, Chtd. Overview
ABC's of Business Formation
Disclaimer
Contact Us

3. ABOUT THIS EVENT SERIES
The goal of these events is to focus on a topic
relevant to emerging and small businesses
emphasizing the legal requirements of doing
business in Prince George's County and in
Maryland. Each workshop will feature a Lerch
Early attorney and provide the opportunity for
interaction/Q&A.
This is the second in a series of online events co-
presented by Lerch, Early & Brewer and the Innovation
Station Business Incubator Powered by the Prince
George's County Economic Development Corporation.
Partnership

4. Alicia Moran
Small Business Manager
Prince George's County Economic
Development Corporation
CONTACT
Amoran@co.pg.md.us

5. SMALL BUSINESS SERVICES
• Business Development Trainings & Workshops
• Access to Financing
• Connections with resource partners
⚬ SCORE, SBDC, PTAC, MWBC, TEDCO,
• Innovation Station Business Incubator and Co-
working space
• Connections to other Business Incubators
• Site Selection

7. Innovation Station
Business Incubator
Fosters:

8. Emerge Stronger Business
Recovery (ESBR) was created as
a solution to the overwhelming
technical assistance needs of
Prince George’s County
Business Recovery Initiative
(BRI) applicants. While
immediate COVID-19 relief
funding is critical to maintain
small business operations,
technical assistance is vital to
improve short-term recovery
odds and post-pandemic
resilience.
BUY PRINCE GEORGE’S is a
movement started in response to
the COVID-19 pandemic supporting
our residents by keeping them
home, and supporting our
businesses by connecting them
with County residents shopping for
goods and services and wanting to
support the local economy. But
shouldn’t we always buy local?
Calling all County foodies and beyond!
Coming to a screen near you is the
Prince George's County Economic
Development Corporation's newest
signature program Take Out
Tuesday!PGCEDC is committed to
promoting its businesses in every way
we can. So join us in our newest
business spotlight series as we
explore all there is to eat in the County
and where you
can #BuyPrinceGeorges!
Spanish Language Business show
with host Rocio Treminio - Lopez.
To connect Spanish speaking
County Businesses with information
and resources to thrive

9. A $20 million program that provided grants to 596 small
County based businesses whose operations have been
interrupted due to COVID -19. Grant assistance provided
up to $100,000 for businesses.
Employ Prince George’s (EPG) has partnered with the Greater
Washington Community Foundation to launch the Prince
George's County COVID-19 Hourly Employee Relief Fund. The
fund will provide $200 Visa Cash Cards to 2,000+ low-wage
hourly workers laid off in Prince George’s County due to the
Coronavirus (COVID-19) pandemic.
A $1 million grant from the Greater Washington Community
Foundation and provided critically needed access to capital for
small businesses in the County. The Legacy Fund will provide
relief from the impact of COVID-19 to help minimize business
vulnerability to closure and bridge the gap to viability.
Applications close August 28, 2020.
A $2 million grant that provides funding to child care centers
that had to close their doors due to the COVID-19 pandemic,
lack of revenue and newly established state and local health and
safety guidelines. $1.4 million is targeted to licensed child care
centers. $600,000 is targeted to registered family child care
homes to help these centers to reopen.
Business Recovery
Initiative
Employee Hourly Relief Fund
Legacy Fund Child Care Recovery Fund

10. Paul E. Alpuche
Business and Tax Attorney
Lerch, Early & Brewer
EXPERTISE
CONTACT
Paul Alpuche is a business and tax attorney
who provides business counsel, tax planning,
and tax controversy guidance to businesses,
nonprofits, and individuals throughout
the Washington, DC area.
301-657-0183
pealpuche@lerchearly.com

11. Develop a
Comprehensive
Business Plan
What is the value
proposition your
business offers?
Who are your competitors
and can you realistically
beat them?
What services or products (or
combination of services and
products) will you provide?
Who and where are your
clients or customers?

12. Adopt a Realistic
Budget for
Launching and
Operating Your New
Business
• How much will it cost to reach the point of
generating revenues?
• How long will it take before you operate at a
profit and earn back your initial investment or to
replace the income you could earn from being
employed?
• How will you price your products and services
and manage your costs?
• Be sure to clearly understand your risk &
exposure to any debt.

13. PERSONAL
Personal savings of
Owners/Incentives to Key
Employees/Consider
Partners
DEBT
Home Equity vs. Small
Business Loans
FRIENDS
& FAMILY
(Investors vs. Lenders)
SOURCES OF CAPITAL FOR NEW BUSINESSES

14. Entity Selection
Non-Tax Considerations • Limitation of Liability for Owners (Use of Entities vs.
Sole Proprietorships)
⚬ General & Limited Partnerships
⚬ Limited Liability Companies
⚬ Corporations
• Need for Observance of Organizational Formalities
⚬ Certificates & Partnership Agreements
⚬ Articles & LLC Operating Agreements
⚬ Articles, Corporate Bylaws, Shareholder
Agreements
• Contractual Obligations and Limitations

15. Entity Selection
Tax Considerations • Entities obtain EINs and file separate tax returns
⚬ Partnerships (“Limited” and “General”)
⚬ Limited Liability Companies (Greatest Flexibility)
⚬ Corporations (“C” and “S”)
• Seek Pass-Through Tax Treatment (Pay One Level of
Tax on your Business Income)
• Pay Estimated Taxes on your Profits
• Keep Excellent Records (or pay someone to!)
⚬ Employees (Obtain an I-9 confirming individuals
eligibility to work)
⚬ Pay Various Employment Taxes (Unemployment,
SS, Medicare, Federal & State Income
Withholding)
⚬ Self-Employment Taxes

16. Developing
A Support
Network
Technology
Legal
Financial/Accounting
Marketing/Social Media
Human Resources
Seek experienced, successful
Advisors in areas that you lack
expertise, which may include:

17. QUESTIONS
&
ANSWERS

18. This content is for your information only and is not
intended to constitute legal advice. Please consult your
attorney before acting on any information contained
here.
No individual or entity – including a presenting author –
may record or broadcast any portion of this presentation
without prior written consent of Lerch, Early, and Brewer,
Chtd. Unauthorized recording (audio, visual, still
photography, etc.) of presentations during sessions,
workshops, slide decks, or other presentation materials,
without the written consent of Lerch, Early, and Brewer,
Chtd. and individual authors is strictly prohibited.
Thank You
DISCLAIMER

19. Thank You
Contact Us
ALICIA MORAN
SMALL BUSINESS MANAGER
PRINCE GEORGE'S COUNTY ECONOMIC
DEVELOPMENT CORPORATION
Amoran@co.pg.md.us
PAUL E. ALPUCHE
BUSINESS AND TAX ATTORNEY
LERCH, EARLY,AND BREWER
301-657-0183
pealpuche@lerchearly.com