How to Form an LLC in Maryland: Steps & Cost (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

You form a Maryland LLC by filing Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT) and paying the $100 filing fee - $150 if you file online, because online filings include a mandatory $50 expedited fee. You must appoint a Maryland resident agent and keep a Maryland principal office, and every LLC files a $300 Annual Report with SDAT by April 15 each year.

Maryland Agency and Form: SDAT, Articles of Organization

A Maryland LLC is created by filing Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT) - Maryland routes business formation through its tax-assessment department rather than a secretary of state. Filing the Articles of Organization, and SDAT's acceptance of them, is the legal act that brings the LLC into existence under the Maryland Limited Liability Company Act, codified at Title 4A of the Corporations and Associations Article.

The Articles of Organization require the LLC's name, the address of its Maryland principal office, the name and address of its resident agent, and the signature of an authorized person. The name must contain an LLC designator - "limited liability company," "LLC," or "L.L.C." - and be distinguishable from other entities on record with SDAT. You can search existing names and file through Maryland Business Express, the state's online business filing portal, which is the fastest route; mail filing is also accepted. This guide covers the Maryland process; for the national overview see how to form an LLC and the concept page what is an LLC.

How to Form a Maryland LLC, Step by Step

Forming a Maryland LLC is a six-step process centered on the Articles of Organization. Each step corresponds to a requirement of the Maryland LLC Act or a federal tax rule.

1. Choose and check your LLC name. Select a name that includes an LLC designator and is distinguishable from names already on file with SDAT. Verify availability through the SDAT business entity search. If you are not ready to file, you may reserve a name for $25. Confirm the name also does not infringe a federal trademark.
2. Appoint a Maryland resident agent. Every Maryland LLC must name a resident agent - a Maryland resident individual or a Maryland corporation with a Maryland street address - who consents to accept service of process. The LLC must also maintain a Maryland principal office.
3. File the Articles of Organization. Submit the Articles of Organization to SDAT and pay the $100 filing fee. Filing online through Maryland Business Express costs $150 because online filings include the mandatory $50 expedited fee and are processed faster; mailed filings can be sent without expediting. Once SDAT accepts the Articles, your LLC legally exists.
4. Adopt an operating agreement. Maryland does not require you to file an operating agreement, but one is strongly recommended to set ownership percentages, management structure, voting, and profit distribution. See agent and governance basics and keep the signed agreement with your records.
5. Get an EIN and register for Maryland taxes. Apply for a free federal EIN from the IRS, then register with the Comptroller of Maryland through the Combined Registration Application if you will collect sales tax or hire employees.
6. File your first Annual Report. Every Maryland LLC files Form 1, the Annual Report and Business Personal Property Return, with SDAT by April 15, paying the $300 annual report fee. See the Maryland Annual Report guide.

After these steps, open a business bank account (banks generally ask for the accepted Articles of Organization and the EIN) and keep your resident agent, annual report, and any tax accounts current every year.

Maryland LLC Filing Fees (2026)

The core cost of a Maryland LLC is the $100 Articles of Organization fee. The table below lists the state fees most new LLCs encounter, each verified against the Maryland Business Express fee schedule or SDAT. Amounts are effective for 2026 and are set by the state, not by any filing service. See also Maryland LLC cost and the national how much an LLC costs.

Online filings paid by credit card or PayPal also carry a 3% technology fee charged by the state's eGovernment provider. Because expedite, copy, and technology fees can change, confirm the current amount on the Maryland Business Express fee schedule before you file.

Maryland Resident Agent Requirement

A Maryland resident agent is the person or entity your LLC designates to receive service of process, tax notices, and official state correspondence. Under Corporations and Associations Article § 4A-210, every Maryland LLC must have a principal office in Maryland and a resident agent, maintained continuously from the date the Articles are accepted until the LLC is cancelled. You name the initial resident agent directly in the Articles of Organization.

The resident agent must be either an individual who is a Maryland resident, or a Maryland corporation authorized to act as a resident agent, and must have a physical Maryland street address - a post office box alone does not satisfy the requirement. You may act as your own resident agent, name a manager, or hire a commercial resident agent service. To change agents later, file a Resolution to Change Resident Agent and/or Principal Office with a $25 fee. Failing to maintain a resident agent can lead to forfeiture of the LLC's right to do business. See Maryland resident agent requirements and the national registered agent overview.

Maryland Annual Report and Personal Property Return

Maryland has no franchise tax and no separate LLC entity income tax, but every LLC must file Form 1, the Annual Report and Business Personal Property Return, with SDAT each year. The annual report fee for an LLC is $300, and the report is due by April 15. Online payments add a 3% technology fee. This filing - not a franchise tax - is the main ongoing state obligation for a Maryland LLC.

If your LLC owns or leases business personal property in Maryland (furniture, equipment, inventory, tools), you complete the personal property return portion of Form 1. Maryland exempts a business from the personal property assessment when the total original cost of its personal property is under $20,000, though the LLC must still file the annual report. Personal property that is assessed is taxed by the county or municipality where it is located, not by the state. Learn more at the Maryland Annual Report and taxes guide.

EIN, Sales and Use Tax, and Licenses

A federal Employer Identification Number (EIN) is issued free by the IRS and is used to open a bank account, hire employees, and file taxes. By default, the IRS treats a single-member LLC as a disregarded entity (taxed on the owner's return) and a multi-member LLC as a partnership; either can elect corporate or S-corporation treatment by filing the appropriate IRS form. Most Maryland LLCs need an EIN, and one is required if the LLC has more than one member or any employees.

If your LLC sells taxable goods or services in Maryland, you must register with the Comptroller of Maryland through the Combined Registration Application and obtain a sales and use tax license, which is free. Maryland's sales and use tax rate is 6%. Many retail and service businesses also need a trader's license from the Clerk of the Circuit Court in their county. Maryland has no single statewide business license, so check local and professional requirements. See business licenses in Maryland and the national business license overview.

Penalties for Missing Maryland Requirements

Missing Maryland requirements carries real consequences. An LLC that fails to file its Annual Report can lose its "good standing" status with SDAT and, if the failure continues, may have its right to do business forfeited. A forfeited LLC generally must file all delinquent annual reports, pay what it owes, and file Articles of Reinstatement before it can return to good standing.

Separately, if an LLC does not maintain a resident agent and Maryland principal office, it can face the same loss of good standing and forfeiture. Keeping your resident agent current and filing the $300 Annual Report by April 15 each year is the simplest way to avoid these outcomes and to keep a clean record for banks, lenders, and buyers who request a certificate of good standing.

Closing a Maryland LLC

To close a Maryland LLC properly, you wind up the business, settle debts and taxes, and file Articles of Cancellation with SDAT. Standard (non-expedited) Articles of Cancellation carry no filing fee; expedited processing is $50. Simply abandoning the LLC leaves the annual report obligation running and can trigger forfeiture rather than a clean close. See how to dissolve an LLC in Maryland and the national dissolution overview for the full wind-up and cancellation steps.

Frequently Asked Questions

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

The state filing fee for Articles of Organization is $100 by mail, or $150 online (online includes a mandatory $50 expedited fee), paid to SDAT. Every LLC then files a $300 Annual Report each year. See Maryland LLC cost.

What form do I file to create a Maryland LLC?

Articles of Organization, filed with the Maryland State Department of Assessments and Taxation (SDAT). File online through Maryland Business Express or by mail with the $100 fee ($150 online).

Does a Maryland LLC need a resident agent?

Yes. Under Corporations and Associations Article § 4A-210, every Maryland LLC must maintain a Maryland principal office and a resident agent who is a Maryland resident or a Maryland entity and who consents to the role.

How long does it take to form a Maryland LLC?

Online filings include the $50 expedited fee and are usually processed in about 7 business days. Mailed filings without expediting take longer. Same-day service costs $325 online or $425 for hand-delivered documents.

When is the Maryland LLC Annual Report due?

Form 1, the Annual Report and Business Personal Property Return, is due to SDAT by April 15 each year. The LLC annual report fee is $300, plus a 3% technology fee if paid online.

Does a Maryland LLC pay state income tax?

By default, a Maryland LLC is a pass-through entity, so profits are reported on the members' Maryland income tax returns rather than an entity income tax. The LLC still owes the $300 annual report and any business personal property tax.

Related

• How to form an LLC (cluster hub)
• Maryland resident agent requirements
• How much does a Maryland LLC cost?
• Maryland LLC Annual Report and taxes
• How to get a business license in Maryland
• How to dissolve an LLC in Maryland
• How to get an EIN

Sources

1. Maryland SDAT - Maryland Business Services (Charter Division) (formation agency, filing portal).
2. Maryland Business Express - Fee Schedule ($100 Articles of Organization; $50 expedited; $325 rush; $300 Annual Report; $0 cancellation; $25 resident agent change).
3. Maryland SDAT - Articles of Organization (LLC) form (PDF).
4. Maryland SDAT - Corporate Name Reservation Application (PDF) ($25 fee).
5. Maryland Business Express - Online business filing portal.
6. Maryland General Assembly - Corporations & Associations § 4A-210, Principal office and resident agent.
7. Maryland General Assembly - Corporations & Associations § 4A-204, Articles of organization.
8. Maryland SDAT - Form 1, Annual Report and Business Personal Property Return (PDF) ($300; April 15; $20,000 exemption).
9. Comptroller of Maryland - Types of Business Licenses (trader's license; sales tax registration).
10. IRS - Limited Liability Company (LLC) (federal default classification).
11. IRS - Get an Employer Identification Number (free EIN).
12. Legal Information Institute (Cornell) - 26 CFR § 301.7701-3 (entity classification election).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Maryland State Department of Assessments and Taxation and the Comptroller of Maryland before acting.