How to Start an LLC in Maryland (Step-by-Step Guide)

Forming an LLC in Maryland requires filing Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT) and paying a $100 filing fee. The process takes about 7 business days for standard online processing.

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 LLC name must be distinguishable from other business names registered in Maryland. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.”

Search the Maryland Business Express name database to check availability. You can also reserve a name for 30 days ($25 fee).

Maryland naming rules:

• Must include an LLC designator (LLC, L.L.C., or Limited Liability Company)
• Cannot be the same as or misleadingly similar to an existing entity on file with SDAT
• Cannot contain restricted words like “bank,” “trust,” or “insurance” without proper authorization

Step 2: Choose a Registered Agent

Maryland requires every LLC to have a registered agent with a physical street address in Maryland. The registered agent receives legal documents and official correspondence on behalf of your LLC.

You can serve as your own registered agent (if you have a Maryland address), or use a professional service. Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $100 state fee.

Step 3: File Your Articles of Organization

File your Articles of Organization with SDAT. You can file online through Maryland Business Express (recommended) or by mail.

Filing details:

• Filing fee: $100
• Online filing: Maryland Business Express (recommended — faster processing)
• Processing time: 7 business days (standard online), 4-6 weeks (mail)
• Expedited processing: $50 additional (7-10 business days) or $325 for rush (same-day if submitted before 2:30 PM)

Information required:

• LLC name
• Purpose of the LLC (can be “any lawful purpose”)
• Registered agent name and address in Maryland
• Principal office address
• Name and address of each organizer
• Whether the LLC is member-managed or manager-managed

Step 4: Create an Operating Agreement

Maryland doesn’t legally require an operating agreement, but having one is strongly recommended. It establishes ownership structure, profit distribution, and management responsibilities — and it’s usually required to 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. You need an EIN to open a business bank account, hire employees, and file taxes.

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

Maryland combines the annual report and personal property tax return into a single filing. This is due by April 15 each year, starting the year after your LLC is formed.

Good news: If you file online through Maryland Business Express, there is no fee for the annual report. Paper filings cost $300.

Maryland LLC Costs

Total first-year cost: $100-$399 (depending on filing method and registered agent). See our complete guide to LLC costs by state.

Maryland LLC Taxes

Maryland LLCs are treated as pass-through entities by default — profits flow through to members’ personal tax returns.

• State income tax: 2% to 5.75% (graduated individual income tax rates)
• County income tax: 2.25% to 3.2% depending on the county (in addition to state tax)
• No franchise tax: Maryland does not impose a franchise tax on LLCs
• Sales tax: 6% state rate (no local sales tax)
• Federal taxes: Standard pass-through taxation — profits pass to members’ personal returns
• Self-employment tax: 15.3% on net self-employment income (federal)

Annual Requirements for Maryland LLCs

• Annual report and personal property tax return: Due April 15 each year, filed with SDAT. Free online, $300 if filed by mail.
• State income tax: Maryland individual income tax returns are due April 15.
• Maintain a registered agent: Must have a registered agent with a Maryland address at all times.

Frequently Asked Questions

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

Standard online processing takes about 7 business days. Mail filings take 4-6 weeks. Expedited processing ($50 additional) takes 7-10 business days, and rush processing ($325 additional) provides same-day service if submitted before 2:30 PM.

Is the Maryland annual report really free?

Yes, if you file your annual report online through Maryland Business Express, there is no filing fee. If you file by mail or paper, the fee is $300. We strongly recommend filing online.

Does Maryland require an operating agreement?

No, Maryland doesn’t legally require an operating agreement. However, we strongly recommend creating one. It protects your personal liability and most banks require one to open a business account.

Can I form a Maryland LLC if I live in another state?

Yes. You can form a Maryland LLC regardless of where you live. You’ll need a registered agent with a physical Maryland address. However, if you primarily do business in another state, you may be better off forming your LLC there instead. See our how to start an LLC guide for more on choosing the right state.

What is the Maryland personal property tax return?

Maryland combines its annual report with a personal property tax return. If your LLC owns, leases, or uses personal property in Maryland, you may owe personal property tax. The combined filing is due April 15 each year and is free when filed online.

Start an LLC in Another State

Click your state below for a step-by-step formation guide with filing fees, requirements, and timelines.