Maryland LLC Requirements

Updated for 2026 · Official Secretary of State Website

Maryland has a unique business filing system where annual reports go through the State Department of Assessments and Taxation (SDAT) rather than the Secretary of State. The $300 annual report fee is one of the highest in the nation, though the $100 filing fee is average. Maryland's proximity to Washington, D.C. and its strong federal contracting economy drive significant LLC formation activity.

Filing Fee

$100

One-time state fee

Annual Fee

$300

Per year

Processing

Immediate to 7 business days

Online filing

Deadline

April 15

Annual report due

Above Average Cost

While Maryland's $100 filing fee is average, the $300 annual report fee places it among the most expensive states for ongoing LLC maintenance — more than 5x the national median.

Notable Facts About Maryland LLCs

Annual reports are filed with SDAT, not the Secretary of State — unusual among states
Maryland's $300 annual report fee is the 4th highest in the nation
Late penalties for annual reports can reach up to $500
The state has the highest median household income in the US due to D.C. proximity

Tax Information for Maryland LLCs

Maryland has a progressive individual income tax with rates from 2% to 5.75%, plus county income taxes of 2.25%-3.2%. LLCs taxed as pass-through entities pay at individual rates. There is no separate franchise tax for standard LLCs.

Formation Steps

1

Choose a Name for Your LLC
Select a unique business name that complies with Maryland naming requirements. The name must include "LLC" or "Limited Liability Company" and cannot be the same as an existing registered business in Maryland.
2

Appoint a Registered Agent
Designate a registered agent with a physical address in Maryland who can receive legal documents and official correspondence on behalf of your LLC.
3

File Articles of Organization
Submit your Articles of Organization (also called a Certificate of Formation in some states) to the Maryland Secretary of State. This is the official document that creates your LLC.
4

Create an Operating Agreement
Draft an operating agreement that outlines ownership percentages, member roles, profit distribution, and management structure of your LLC. While not always legally required, it is strongly recommended.
5

Get an EIN from the IRS
Apply for a free Employer Identification Number (EIN) from the IRS. You'll need this for opening a business bank account, hiring employees, and filing taxes.
6

Open a Business Bank Account
Open a dedicated business bank account to keep your personal and business finances separate. This helps maintain your LLC's liability protection.
7

File Annual Reports
Maryland requires periodic reports due by April 15. The filing fee is $300. Mark your calendar to avoid late fees or administrative dissolution.

Visit Official SOS Website

Annual Report Details

Fee: $300

Deadline: April 15

Annual report due by April 15 each year. Only needs to be postmarked by April 15. Late penalties up to $500.

Called 'Annual Report / Personal Property Tax Return'. Filed with SDAT (State Department of Assessments and Taxation), not the Secretary of State.

Need a Registered Agent in Maryland?

Every Maryland LLC must have a registered agent with a physical address in the state. A registered agent service ensures you never miss important legal documents or compliance deadlines.

Compare Registered Agent Services

Frequently Asked Questions

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

The state filing fee to form an LLC in Maryland is $100 for the Articles of Organization. This cost is above average compared to other states. Additional costs may include a registered agent service ($50-$300/year) and an operating agreement if you hire an attorney.

What is the annual cost of an LLC in Maryland?

Maryland charges $300 for its periodic reporting requirement, due April 15. Called 'Annual Report / Personal Property Tax Return'. Filed with SDAT (State Department of Assessments and Taxation), not the Secretary of State. While Maryland's $100 filing fee is average, the $300 annual report fee places it among the most expensive states for ongoing LLC maintenance — more than 5x the national median.

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

Online filing in Maryland typically takes Immediate to 7 business days. You'll need to file Articles of Organization with the state. Processing times may vary based on filing volume and the time of year.

Do I need a registered agent in Maryland?

Yes, Maryland requires every LLC to have a registered agent with a physical street address in the state. The registered agent receives legal documents, tax notices, and official government correspondence on behalf of your LLC.

What taxes does a Maryland LLC pay?

Does Maryland require an operating agreement for LLCs?

While not all states legally require an operating agreement, it is strongly recommended for every LLC in Maryland. An operating agreement defines ownership structure, member roles, and how the business will be managed. Without one, your LLC will be governed by Maryland's default LLC laws.