Form a LLC in Maryland

Everything you need to know about forming a LLC in Maryland. Filing fees, requirements, timeline, and step-by-step guidance.

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$100
Filing Fee
4-6 weeks by mail; 7-10 business days online
Processing Time
Required
Registered Agent

How to File

1

Choose a Name for Your LLC

Select a unique business name that includes 'Limited Liability Company,' 'LLC,' or 'L.L.C.' and is distinguishable from existing entities registered in Maryland. Use the Maryland Business Express name search tool to verify availability.

30 minutes

2

Designate a Registered Agent

Appoint a registered agent with a physical Maryland street address (P.O. boxes are not accepted) who is available during normal business hours to receive legal and official documents on behalf of the LLC. The agent can be an individual Maryland resident or a registered agent service.

15-30 minutes

3

File Articles of Organization with SDAT

Complete and file the Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT) online via Maryland Business Express or by mail. Pay the $100 filing fee at submission.

30-60 minutes

4

Create an Operating Agreement

Although not legally required by Maryland law, drafting an Operating Agreement is strongly recommended to define ownership structure, member roles, profit distribution, and governance procedures to avoid disputes and protect limited liability status.

1-3 hours

What's Next After Filing

Once your LLC is officially formed, you'll want to complete these important steps:

  • Obtain an EIN from the IRSApply for a Federal Employer Identification Number (EIN) from the IRS online for free at IRS.gov. An EIN is required to open a business bank account, hire employees, and file federal and state taxes.
  • Register for Maryland State TaxesRegister your LLC with the Maryland Comptroller's office for applicable state taxes, including sales and use tax, employer withholding tax, or other business taxes, using the Combined Registration Application available at the Comptroller's website.
  • File Annual Report and Personal Property ReturnAfter formation, maintain compliance by filing Maryland's Annual Report and Personal Property Return with SDAT each year by April 15. This filing is mandatory for all Maryland LLCs to remain in good standing.

Advantages

  • Limited liability protection shields members' personal assets from business debts and legal judgments
  • Flexible management structure allowing member-managed or manager-managed operation with no board requirements
  • Pass-through taxation by default avoids double taxation, with the option to elect S-Corp or C-Corp tax treatment for potential savings
  • Maryland has a straightforward online formation process through Maryland Business Express, making LLC setup relatively fast and accessible

Considerations

  • The mandatory Annual Report fee of $300 per year is relatively high compared to many other states, increasing ongoing compliance costs
  • Standard processing times can be lengthy — up to 4-6 weeks by mail — which may delay business launch without paying for expedited service
  • Maryland LLCs with members who are nonresidents may face additional withholding tax obligations at the entity level under Maryland pass-through entity tax rules

Annual Obligations

Annual Report Fee:$300
Report Due:April 15
Maryland LLCs must file an Annual Report and Personal Property Return with SDAT by April 15 each year. The filing fee is $300 for the Annual Report. Failure to file can result in the LLC being forfeited. Maryland does not impose a separate franchise tax on LLCs, but LLCs with personal property may owe personal property taxes assessed through the same filing. LLCs classified as pass-through entities may also be subject to Maryland's pass-through entity tax at the member level.
Last verified: June 2026Source

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Form an LLC in Maryland | Filing Guide 2025 | OpenChamber