On March 6, 2018, the Maryland State Senate passed a bill that would require self-insured employers to report workers’ compensation fraud to the Maryland Insurance Administration’s Fraud Division. S.B. 575 was sponsored by Senator Katherine Klausmeier of Baltimore County and is now pending in the Maryland House. Subject to any further changes and amendments, it is expected to be passed by the House and take effect in October 2018.
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Many small businesses, organized as S corporations, encounter the problem of cash shortfalls at some point in their existence. As a result, S corporation shareholders are commonly faced with the question, “what is the best way to inject cash into the business, a capital contribution or a shareholder loan?” The answer to that question will depend on the specific facts of the company as discussed below.
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