Quick answer

Quick Answer

To start a Maryland LLC, you must file Articles of Organization with the Maryland Department of Assessments and Taxation (SDAT) and pay a $100 filing fee. You must appoint a "Resident Agent" with a physical Maryland street address. Every year, your LLC must file a combined Annual Report and Personal Property Tax Return by April 15, which costs $300. Maryland does not charge a state franchise tax, but pass-through LLC profits are subject to a graduated state income tax (2% to 5.75%), plus mandatory local county income taxes.

Maryland LLC filing fee

The state filing fee to submit your Articles of Organization is $100. The most efficient way to file is online using the Maryland Business Express portal. Standard online processing typically takes 7 to 10 business days, though expedited options are available for an additional fee.

Step 1: Choose a name

Your LLC's name must be perfectly unique and distinguishable from other business entities registered in Maryland. Furthermore, it must include a proper LLC designator, such as "Limited Liability Company" or "LLC" or "L.L.C." You can check the availability of your desired name using the Maryland Business Express search tool.

Step 2: Appoint a registered agent (Resident Agent)

Maryland refers to registered agents as "Resident Agents." The legal role is identical. You must appoint a Resident Agent to receive service of process, lawsuits, and official government correspondence on behalf of the LLC. The agent must have a physical street address in Maryland (P.O. Boxes are not accepted) and must be available during normal business hours.

Step 3: File formation documents

Your business is officially created when you file the Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT). The form requires your LLC's name, its principal office address, the purpose of the business, and the Resident Agent's details and signature. The filing fee is $100.

Step 4: Create an operating agreement

Maryland law does not require you to file an operating agreement. However, drafting this internal document is highly recommended. It establishes the rules for how your LLC will be managed, how profits will be divided, and what happens if an owner leaves. Nearly all banks will demand a copy of your operating agreement to open a business bank account.

Step 5: Get an EIN

An Employer Identification Number (EIN) is a free 9-digit tax ID assigned by the IRS. It serves as a social security number for your business entity. You need an EIN to hire employees, file federal taxes, and open a business checking account. You can apply for one online through the IRS website.

Step 6: Register for state taxes if needed

If your LLC sells physical goods, you must register with the Comptroller of Maryland to collect the 6% state sales tax (Maryland localities do not charge additional sales tax). For income tax, LLC profits pass through to your personal return and are subject to Maryland's graduated state income tax (up to 5.75%), as well as local county income taxes (which add roughly 2.25% to 3.20% depending on where you live).

Step 7: File annual reports and stay compliant

Every Maryland LLC must file a combined Annual Report and Personal Property Return each year. This is required even if your LLC does not own any physical personal property. The report is due by April 15 of every year, starting the year after formation. The filing fee is $300. Failure to file this report will eventually result in the forfeiture of your LLC's right to conduct business in Maryland.

Maryland LLC Cost

Fee Type Amount
Formation fee $100
Registered agent estimate $39 - $150 / year
Annual report fee $300 / year
Franchise tax $0 (None)
Publication fee if applicable $0 (None)
WHEN THIS MAY NOT APPLY

If you do not live in Maryland, do not operate from Maryland, and do not have a specific Maryland-related reason for forming there, a Maryland LLC may not be the best default choice. You may still need to register the LLC as a foreign LLC in the state where you actually operate, which can create duplicate filing fees, registered agent costs, and annual compliance requirements.

Maryland currently charges $100 to form a domestic LLC. Annual reports are currently $300. For many purely online businesses, it is usually worth comparing your home state with commonly used business-friendly states such as Wyoming, which charges $100 to form an LLC and has a $60 minimum annual license tax, before choosing Maryland.

Should you form your LLC in Maryland?

A Maryland LLC usually makes sense if you live in Maryland, operate your business from Maryland, or have a clear legal or tax reason to use Maryland. If you live and operate somewhere else, forming in Maryland may create extra registered agent costs, foreign qualification requirements, and duplicate compliance obligations. Maryland may appeal to some owners, but compare it with Wyoming, Delaware, Nevada, and your home state in our guide to the best state for an online business LLC. For a comprehensive overview of starting a business, visit our LLC formation hub.

Situation Is a Maryland LLC usually a good fit?
You live in Maryland Usually yes
Your business operates in Maryland Usually yes
You want privacy Depends on state rules
You live in another state Usually only if you have a specific reason
You are a non-US resident Depends on banking, taxes, and compliance needs

Maryland LLC vs Wyoming LLC

Wyoming is vastly superior to Maryland for out-of-state holding companies or digital nomads. Wyoming is far cheaper to maintain ($60 minimum annual report vs Maryland's $300 annual report). More importantly, Wyoming has zero state or local income taxes, whereas Maryland imposes both state and county income taxes. Wyoming also offers strong statutory privacy, keeping LLC owner names off public records—Maryland does not. If you run a purely online business, Wyoming is a much better choice. If your business operates physically in Maryland, you must register there.