Form an LLC in Maryland
Maryland files through SDAT, not a Secretary of State, and charges $300 a year – CountSure handles the filing, your resident agent, and the April 15 report so nothing slips. $100 to file – but plan for the $300 annual report.
Requirements, costs & steps for an Maryland LLC
Maryland does a few things differently from most states, and knowing them up front saves headaches. You file with the State Department of Assessments and Taxation, a tax agency rather than a Secretary of State, and every year you owe a $300 combined annual report and personal property return, one of the higher recurring fees in the country. This guide covers the real costs, the filing order, and those Maryland specifics in plain terms. Want it handled for you? Our Maryland LLC formation service files with SDAT, sets up your resident agent, and tracks the April 15 deadline.
What you need to know?
Filed with SDAT, not a Secretary of State:
Maryland routes business filings through the State Department of Assessments and Taxation, a tax agency, via Maryland Business Express.
Filing fee:
$100 for the Articles of Organization (flat, regardless of members).
The $300 annual filing:
A combined annual report and personal property return (Form 1) is due April 15 each year for $300, owed even if you own no property. Online adds a 3% tech fee.
Resident agent:
Maryland calls it a resident agent, and it must be a Maryland-resident individual or a Maryland corporation, LLC or limited partnership.
Operating agreement recommended:
Maryland does not legally require one (members may even agree orally), but a written agreement is your main record of ownership and management terms, so treat it as essential.
Maryland LLC at a glance
The essentials for forming and maintaining a Maryland LLC.
How to form an Maryland LLC, Step by Step
Seven steps from name check through your April 15 annual filing.
Choose and check your LLC name
Your name must include “Limited Liability Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.,” and be distinguishable from existing Maryland entities. Search SDAT’s business database. You can reserve a name for 30 days for $25 if desired.
Appoint a resident agent
Maryland requires a resident agent with a physical Maryland street address (no PO box). It must be a Maryland resident, or a Maryland corporation, LLC or limited partnership. You can serve as your own if you are a Maryland resident. CountSure can act as your resident agent.
File Articles of Organization with SDAT
File through Maryland Business Express (or by mail) for $100. You provide the LLC name, purpose, principal office, and resident agent. Standard processing runs several weeks; online same-day Rush service (submit by 2:30 PM) is available for an extra $325, and expedited review (7-10 business days) for $50.
Create an operating agreement
Maryland does not legally require one, and it is not filed with SDAT, but you should put one in writing. It sets ownership, profit splits, and management, and reinforces your liability protection.
Get an EIN from the IRS
Free, and needed for banking, hiring, and to register with the Comptroller of Maryland.
Register for Maryland taxes
Register with the Comptroller of Maryland through the Maryland Tax Connect portal for sales and use tax (if you sell taxable goods) and withholding (if you have employees).
Calendar your April 15 annual filing
File the combined annual report and personal property return (Form 1) with SDAT by April 15 each year, for $300, starting the year after formation. Filing late triggers a penalty based on your county assessment, and never filing leads to forfeiture of your LLC’s charter.
Naming & Member Requirements
A compliant name and a clear management structure keep your SDAT filing moving. Here’s what Maryland requires.
- Required ending: “Limited Liability Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.”
- Restricted words: Terms implying banking, insurance, or regulated activity generally need approval.
- Optional reservation: Reserve an available name for 30 days for $25 before filing.
- Trade name (DBA): To operate under a different name, register a trade name with SDAT for $25
- Members & management: One member minimum - Maryland allows single-member LLCs, with no residency or age requirement for members or managers (though the resident agent must be Maryland-based). Member-managed or manager-managed, set in your operating agreement.
Ongoing Maryland LLC Compliance & Taxes
Annual Report and Personal Property Return, due April 15
This is the Maryland cost people underestimate. Every LLC files a combined Annual Report and Personal Property Return (Form 1) with SDAT by April 15 each year, for $300. Unlike most states, the deadline is a universal calendar date, not your formation anniversary, and it lands on the same day as the federal individual tax deadline, which makes it easy to forget it is a separate filing. The $300 is owed even if your LLC owns no property and did no business; the personal property portion applies only if you own, lease, or use business property in Maryland. Filing online through Maryland Business Express adds a 3% technology fee, bringing the total to about $309. A 60-day extension to June 15 is available if you request it by April 15. Two useful wrinkles: SDAT-certified family farms pay $100 instead of $300, and the $300 fee is waived for businesses that MarylandSaves has approved for the waiver before December 31 of the prior year (approval must be renewed each year). Filing after April 15 brings a penalty of one-tenth of one percent of your county assessment plus interest, and never filing leads to forfeiture of your LLC’s charter.
No franchise tax
Maryland does not impose a franchise tax on net worth, so an ordinary LLC’s only fixed annual cost to the state is the $300 report.
Income tax
A default LLC does not pay Maryland income tax at the entity level. Profits pass through to members, who report their share on their Maryland personal returns at the state’s graduated individual rate of 2% to 6.5%, plus a county or local income tax that ranges from 2.25% to 3.30% depending on where you live. If your LLC elects C-corporation treatment, Maryland’s flat 8.25% corporate income tax applies instead. Maryland also allows pass-through entities to elect to pay tax at the entity level (Form 511), which can help with the federal SALT cap. Pass-through entities file Form 510.
Sales tax and licenses
Maryland’s general sales and use tax rate is 6% statewide with no local sales tax; certain data, IT and software services are taxed at 3%, and alcohol (9%) and adult-use cannabis (12%) carry higher rates. Register through the Comptroller if you sell taxable goods. Maryland has no single statewide general business license; whether you need one depends on your industry and county. Get a free EIN from the IRS.
Maryland LLC Cost Breakdown
What you’ll actually pay to form and run a Maryland LLC.
Insight From Our Team
“Two things surprise clients about Maryland. First, you are not filing with a Secretary of State at all, you file with SDAT, the assessments and taxation department, and the role is called a resident agent, which has to be based in Maryland. Second, the real cost of a Maryland LLC is not the hundred dollars to form it, it is the three hundred dollars a year for the combined annual report and personal property return, due every April 15 no matter when you formed. People file their federal taxes, think they are done, and miss it. One tip worth knowing: if MarylandSaves approves your business for the waiver before year end, the next year’s three hundred dollar fee is waived, so for some clients it pays for itself.”
Parth Shah
CountSure
Related Guides & Services
Frequently Asked Questions
The state filing fee is $100 for the Articles of Organization, filed with SDAT. After that, the main recurring cost is the $300 annual report and personal property return due April 15.
Maryland is unusual. Business entities are handled by the State Department of Assessments and Taxation, a tax and assessment agency, rather than a Secretary of State. You file through the Maryland Business Express portal.
It is a combined Annual Report and Personal Property Return (Form 1) that every Maryland LLC files with SDAT by April 15. The $300 is owed even if you own no business property. Filing online adds a 3% technology fee.
No, not as a matter of law. Maryland’s LLC Act says members may enter into an operating agreement, and it need not be in writing. We still recommend a written one: it documents ownership, profit splits and management, and it is what banks and courts look for.
Yes, in one case. Businesses approved by MarylandSaves for the waiver (by December 31 of the prior year) have the $300 annual report fee waived. SDAT-certified family farms pay a reduced $100 fee.
No. Members and managers do not need to be Maryland residents. However, your resident agent must be a Maryland resident or a Maryland business with a physical in-state address.
Get Started
Start your Maryland LLC with CountSure
From the SDAT Articles of Organization to your resident agent, a written operating agreement, EIN, and the April 15 annual filing, CountSure handles your Maryland LLC end to end, so the $300 report and the tax-agency quirks never catch you out.
- Free 30-minute consultation with a CPA
- Fixed-fee, fully transparent pricing
- 100% remote - no travel or visa required
