How to Start an LLC in Maryland

Maryland requires a $100 filing fee to form an LLC by submitting Articles of Organization with the State Department of Assessments and Taxation (SDAT). Processing takes 7-10 business days, which is slower than many neighboring states. Maryland is one of the few states that legally requires LLCs to have an operating agreement, and the state’s annual report (called a personal property return) costs $300 — one of the higher ongoing fees in the country.

Follow these steps to start your Maryland LLC in 2026.

How to Start an LLC in Maryland (6 Steps)

Step 1: Name Your Maryland LLC

Your Maryland LLC name must be distinguishable from any other business entity on file with the Maryland State Department of Assessments and Taxation (SDAT). The name must include a designator such as “Limited Liability Company,” “LLC,” “L.L.C.,” or similar abbreviation. You can search for available names using the Maryland Business Express entity search.

If you find an available name and aren’t ready to file immediately, you can reserve it by filing a request with SDAT. Name reservations are not commonly used in Maryland, as most filers proceed directly to filing their Articles of Organization. However, you can contact SDAT to inquire about availability and reservation options.

Before finalizing your name, check whether the matching domain name is available for your website and whether the name is available on social media platforms. You should also search the USPTO trademark database to make sure your desired name doesn’t infringe on an existing trademark.

Maryland naming rules:

• Must include “Limited Liability Company,” “LLC,” “L.L.C.,” or similar abbreviation
• Must be distinguishable from other business names on file with SDAT
• Cannot include words that imply the LLC is a bank, insurance company, or government agency without proper licensing
• Cannot contain language suggesting a purpose the LLC is not authorized to pursue

Step 2: Choose a Resident Agent

Maryland requires every LLC to have a resident agent (Maryland’s term for a registered agent) with a physical street address in Maryland. The resident agent receives legal documents — including lawsuits, subpoenas, and official state correspondence — on behalf of your LLC. This is a legal requirement, and your LLC cannot be formed without designating a resident agent.

You can serve as your own resident agent (if you have a Maryland address), appoint a trusted friend or family member, or hire a professional registered agent service. While acting as your own resident agent saves money, it means your personal address becomes public record and you must be available at that address during all normal business hours to accept documents.

Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $100 state fee. Using a professional service provides privacy, ensures you never miss an important document, and frees you from having to be physically present at a fixed address during business hours.

Step 3: File Your Articles of Organization

To officially create your Maryland LLC, you need to file Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT). The fastest way to file is online through Maryland Business Express. You can also file by mail, but online filing is recommended for faster processing.

When completing the Articles of Organization, you’ll need to choose between a member-managed and manager-managed structure. In a member-managed LLC, all owners participate in running the business. In a manager-managed LLC, one or more designated managers handle day-to-day operations while other members are passive investors. Most small LLCs choose member-managed.

Filing details:

• Filing fee: $100
• Online filing: Maryland Business Express (recommended)
• Processing time: 7-10 business days (standard)

Information required:

• LLC name
• Purpose of the LLC (can be general, such as “any lawful purpose”)
• Resident agent name and address
• Principal office address
• Names and addresses of organizers
• Management structure (member-managed or manager-managed)
• Duration of the LLC (typically perpetual)

Step 4: Create an Operating Agreement

Maryland is one of the few states that legally requires LLCs to have an operating agreement. Under the Maryland Limited Liability Company Act, every LLC must adopt an operating agreement. This requirement applies to both single-member and multi-member LLCs. While the state does not require you to file the operating agreement with any government agency, you must have one in place.

Your operating agreement should cover ownership percentages, profit and loss distribution, voting rights, management structure, and what happens if a member wants to leave or if the LLC is dissolved. Without a well-drafted operating agreement, disputes among members can become costly and difficult to resolve. Most banks and financial institutions also require a copy of your operating agreement before they will open a business bank account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. It’s free and takes about 15 minutes online. An EIN is a nine-digit number assigned by the IRS that acts as your LLC’s tax identification number — think of it as a Social Security Number for your business. You need an EIN to open a business bank account, hire employees, file federal taxes, and apply for business permits. Even single-member LLCs with no employees should get an EIN, as it helps keep your personal Social Security Number off business documents.

Step 6: File Your Maryland Annual Report and Personal Property Return

All Maryland LLCs must file an Annual Report and Personal Property Return with SDAT each year. The filing fee is $300, which is one of the higher annual fees among all states. The report is due by April 15 each year. This report updates the state on your LLC’s current information, including your resident agent, principal office address, and member or manager details.

Your first annual report is due on April 15 of the year after your LLC is formed. For example, if you form your LLC in August 2026, your first annual report is due April 15, 2027. File your report through Maryland Business Express. Failure to file can result in forfeiture of your LLC’s good standing and eventual dissolution. Maryland also requires LLCs to file state income tax returns, as the state has a graduated income tax ranging from 2% to 5.75%.

Maryland LLC Costs

Total first-year cost: $400-$700. This range covers the required state filing fee ($100) plus the annual report ($300) and an optional resident agent service. If you serve as your own resident agent, your mandatory costs are $400 in the first year. See our complete guide to LLC costs by state.

Maryland LLC Taxes

Maryland has a graduated state income tax with rates ranging from 2% to 5.75%. The top rate of 5.75% applies to income over $250,000 (for single filers). LLC profits pass through to members’ personal tax returns and are taxed at these individual rates. In addition to the state income tax, Maryland counties and Baltimore City impose their own local income taxes ranging from 2.25% to 3.2%, which significantly increases the overall tax burden.

Maryland does not impose a separate franchise tax on LLCs. However, the $300 annual report fee functions similarly to an annual franchise tax in terms of ongoing costs. Multi-member LLCs must also file a Maryland pass-through entity tax return (Form 510) with the Comptroller.

Maryland has a state sales tax rate of 6% with no additional local sales taxes. If your LLC sells taxable goods or services, you’ll need to collect and remit sales tax. You can register for a sales tax license through the Comptroller of Maryland.

Remember that all LLC members still owe federal income tax and self-employment tax (15.3%) on their share of LLC profits, regardless of the state’s tax treatment.

Maryland LLC Annual Requirements

Every Maryland LLC must file an Annual Report and Personal Property Return with SDAT by April 15 each year. The filing fee is $300. This report updates the state on your LLC’s resident agent, principal office address, and management information. File your annual report online through Maryland Business Express for the fastest processing.

In addition to the annual report, you must maintain your operating agreement (which is legally required in Maryland), keep your resident agent information current with SDAT, and file an amendment if your LLC’s name, resident agent, or other key information changes. Maintain accurate internal records, including meeting minutes and financial statements. Maryland LLCs must also file state income tax returns and comply with any local business license requirements.

If you want to confirm that your LLC is in good standing, you can request a Certificate of Status from SDAT for $20. This document is sometimes needed when applying for business loans, opening bank accounts in other states, or registering your LLC as a foreign entity in another state.

Best LLC Formation Services for Maryland

Start an LLC in Another State

Frequently Asked Questions

How much does it cost to start an LLC in Maryland?

The state filing fee for a Maryland LLC is $100, which is the cost to file your Articles of Organization with SDAT. Additional costs include the annual report ($300/year), an optional resident agent service ($39-$299/year), and a name reservation ($25, optional). Most people spend between $400 and $700 in their first year. Maryland’s $300 annual report fee makes it one of the more expensive states for ongoing LLC maintenance.

How long does it take to form an LLC in Maryland?

Standard processing through SDAT takes 7-10 business days when filed online through Maryland Business Express. Expedited processing is available for an additional fee. Filing by mail takes longer, often 3-4 weeks.

Do I need a resident agent in Maryland?

Yes, every Maryland LLC is required by law to have a resident agent with a physical street address in Maryland. The resident agent accepts legal documents, including lawsuits and official state mail, on behalf of your LLC during normal business hours. A P.O. box cannot be used as a resident agent address.

Does Maryland require an operating agreement?

Yes, Maryland is one of the few states that legally requires LLCs to have an operating agreement. Under the Maryland Limited Liability Company Act, every LLC must adopt an operating agreement. While you do not need to file it with any government agency, you must have one in place. The agreement should cover ownership, profit distribution, voting rights, and management structure.

How are LLCs taxed in Maryland?

Maryland has a graduated state income tax with rates from 2% to 5.75%. Additionally, Maryland counties and Baltimore City impose local income taxes ranging from 2.25% to 3.2%. LLC profits pass through to members’ personal tax returns and are taxed at both state and local rates. Members still owe federal income tax and self-employment tax (15.3%) on their share of profits.

Can I be my own resident agent in Maryland?

Yes, you can serve as your own resident agent in Maryland as long as you have a physical street address in the state (not a P.O. box) and are available at that address during normal business hours to accept legal documents. Your address will become part of the public record. Many LLC owners prefer using a professional registered agent service for privacy and convenience.

When is the Maryland LLC annual report due?

The Maryland LLC annual report (Annual Report and Personal Property Return) is due by April 15 each year and costs $300. Your first annual report is due on April 15 of the year after your LLC is formed. File your report online through Maryland Business Express. Failure to file can result in forfeiture and eventual dissolution of your LLC.

Does my Maryland LLC need a business license?

Maryland does not have a single statewide business license, but many businesses need a trader’s license from their county clerk’s office. Depending on your industry and location, you may also need specific permits at the state, county, or city level. Check with your local government and the Maryland SDAT to determine what applies to your business.

Can a non-resident form an LLC in Maryland?

Yes, you do not need to be a Maryland resident or a U.S. citizen to form an LLC in Maryland. However, you will need a resident agent with a physical address in Maryland. Many non-residents use a professional registered agent service for this purpose. If you conduct business in another state where you live, you may also need to register your Maryland LLC as a foreign LLC in that state.