Maryland LLC Annual Report and Taxes (2026)
Every Maryland LLC files Form 1, the Annual Report and Business Personal Property Return, with the State Department of Assessments and Taxation (SDAT) by April 15 each year and pays a $300 fee. Businesses with under $20,000 in personal property are exempt from the property assessment but still file the report. Maryland has no LLC franchise tax.
Quick Answer
- Form
- Form 1 - Annual Report and Business Personal Property Return
- Fee
- $300 for an LLC (2026), to SDAT
- Due date
- April 15 each year
- Property exemption
- Under $20,000 original cost - no assessment
- Online fee
- 3% technology fee on Maryland Business Express
- Franchise tax
- None in Maryland
What the Maryland Annual Report Is
The Maryland Annual Report is a yearly filing that keeps your LLC in good standing with SDAT. In Maryland it is combined with the Business Personal Property Return on a single document, Form 1. The report confirms the LLC's contact and address information and, when applicable, reports the business personal property the company owns or leases in Maryland. Filing it is how the state knows the LLC is still active and how counties assess any personal property tax. It is separate from your federal and state income tax returns; see business tax basics.
The report applies to LLCs formed in Maryland and to foreign LLCs registered to do business there. It is the LLC's main recurring obligation after formation, and keeping it current is what lets you obtain a certificate of good standing when a bank or lender asks.
The $300 Annual Report Fee
The Annual Report fee for a Maryland LLC is $300, paid to SDAT with Form 1. The fee is flat - it does not scale with revenue - and applies whether the LLC made money, broke even, or was dormant. If you file and pay online through Maryland Business Express, a 3% technology fee is added by the state's payment processor. The $300 is the same for domestic and foreign LLCs. For how this fits into total costs, see Maryland LLC cost.
Due Date and Extensions
Form 1 is due by April 15 each year for the prior assessment year. If you need more time for the personal property return portion, Maryland allows a request for a two-month extension to June 15, which must be filed by the April 15 deadline. The extension applies to the property return; the Annual Report itself and its $300 fee are still expected by the deadline. Mark the date each year, because a late or missing report is the most common reason Maryland LLCs slip out of good standing.
The Business Personal Property Return
The personal property portion of Form 1 reports tangible business property located in Maryland - furniture, fixtures, machinery, tools, and inventory - at its original cost. SDAT uses this to set an assessment, and the county or municipality where the property sits levies the tax; there is no state-level personal property tax. The rate and bill therefore depend on your local jurisdiction.
Maryland exempts a business from the personal property assessment when the total original cost of its personal property is under $20,000. If you qualify, you check the exemption on Form 1 and owe no personal property tax - but you still must file the Annual Report and pay the $300 fee. Many home-based, consulting, and online LLCs fall under the threshold; equipment-heavy and retail businesses often exceed it and should budget for the local tax.
"Original cost" means what you paid for the property when new, not its depreciated book value, so track purchases carefully - a business can cross the $20,000 line faster than it expects once vehicles, computers, and fixtures are totaled at their purchase price. If you are near the threshold, keep a simple asset schedule so you can report accurately and support the exemption if SDAT asks. Even when the exemption applies, filing the personal property section (or checking the exemption box) is part of completing Form 1; leaving it blank can cause SDAT to treat the return as incomplete.
| Situation | Annual Report ($300)? | Personal property tax? |
|---|---|---|
| Under $20,000 in personal property | Yes - required | No - exempt from assessment |
| $20,000 or more in personal property | Yes - required | Yes - assessed and taxed locally |
| Dormant / no income | Yes - required | Only if property is over the threshold |
How to File Form 1
You can file Form 1 two ways. The fastest is online through Maryland Business Express: you look up your LLC by its SDAT Department ID, confirm the address and contact details, complete the personal property section if it applies, and pay the $300 fee plus the 3% technology fee by card or e-check. Online filing usually posts the LLC back to good standing within a few business days. The alternative is to download Form 1 from SDAT, complete it, and mail it with a $300 check; mailed returns take longer to process and do not carry the technology fee.
Before you file, have your Department ID, a summary of business personal property (original cost by year of acquisition, if over the threshold), and your payment method ready. If you use a resident agent or accountant, confirm who is responsible for filing so the report does not slip through the cracks. The report is the same each year, so once you have filed one, subsequent years are largely a matter of confirming the prior information and paying the fee.
Two filing mistakes are common. First, owners assume a dormant or money-losing LLC is excused - it is not; the report and $300 fee are due regardless of activity. Second, owners forget the report entirely because, unlike a tax return, no one sends an invoice. SDAT mails or emails reminders when it has current contact information, but the legal duty to file by April 15 falls on the LLC whether or not a reminder arrives. Setting a recurring calendar alert well before the deadline is the simplest safeguard, and updating your contact information with SDAT whenever you move keeps those reminders reaching you.
Maryland Income Tax on the LLC
By default, a Maryland LLC is a pass-through entity: profits and losses flow to the members, who report them on their personal returns. A single-member LLC is a disregarded entity federally, and a multi-member LLC is taxed as a partnership, unless the LLC elects corporate or S-corporation treatment with the IRS. Members pay Maryland personal income tax on their share of the profit; the LLC itself does not pay a separate flat entity income tax. Maryland also offers an elective pass-through entity tax that some multi-member LLCs use for federal deduction planning - a decision to review with a tax professional. This page covers the SDAT report; for federal setup see how to get an EIN.
It helps to keep three obligations mentally separate. The SDAT Annual Report ($300, due April 15) keeps the entity in good standing. Income tax is filed separately with the IRS and the Comptroller of Maryland based on the LLC's classification. Sales and use tax, covered below, applies only if you sell taxable goods or services. These are different filings to different offices, and being current on one does not satisfy the others. A single missed Annual Report can undo an otherwise clean tax record by pushing the entity out of good standing, so treat the April 15 SDAT deadline as its own fixed calendar item.
Sales and Use Tax
If your LLC sells taxable goods or certain services in Maryland, you must collect and remit sales and use tax at Maryland's 6% rate. You register for a free sales and use tax license with the Comptroller of Maryland through the Combined Registration Application and then file sales tax returns on the schedule the Comptroller assigns. Sales tax is separate from the SDAT Annual Report, but both are ongoing obligations. See business licenses in Maryland for how the sales tax license connects to the trader's license.
Penalties for a Late or Missing Report
Missing the Annual Report has escalating consequences. First, the LLC loses good standing with SDAT, which can block loans, contracts, and a certificate of good standing. If the property return is late, SDAT can add interest and penalties to any personal property assessment. Continued failure to file leads to forfeiture of the LLC's right to do business, after which returning to good standing requires filing Articles of Reinstatement and all delinquent reports. Filing on time each April 15 avoids all of this. When you eventually close, file a final report before cancelling the LLC.
Frequently Asked Questions
How much is the Maryland LLC Annual Report fee?
$300, paid to SDAT with Form 1 each year. Filing and paying online through Maryland Business Express adds a 3% technology fee.
When is the Maryland Annual Report due?
Form 1 is due to SDAT by April 15 each year. A two-month extension to June 15 is available for the personal property return portion if requested by April 15.
Does every Maryland LLC have to file an Annual Report?
Yes. Every Maryland LLC - domestic or foreign, active or dormant - must file Form 1 and pay the $300 fee each year to stay in good standing, regardless of income.
What is the $20,000 personal property exemption?
If the total original cost of your Maryland business personal property is under $20,000, you are exempt from the assessment. You still file the Annual Report and pay the $300 fee.
Does a Maryland LLC pay a franchise tax?
No. Maryland has no LLC franchise tax. The recurring state obligations are the $300 SDAT Annual Report and any local business personal property tax on assessed property over $20,000.
Related
- Business tax basics (cluster hub)
- How to form an LLC in Maryland
- Maryland LLC cost and filing fees
- Maryland resident agent requirements
- Business licenses in Maryland
- How to dissolve an LLC in Maryland
- S-corp vs LLC
- How to get an EIN
- Maryland Articles of Organization
- What is an LLC?
Sources
- Maryland SDAT - Form 1, Annual Report and Business Personal Property Return (PDF) ($300 LLC fee; April 15; $20,000 exemption).
- Maryland Business Express - Fee Schedule ($300 Annual Report; 3% technology fee).
- Maryland SDAT - Maryland Business Services (annual report filing; April 15 deadline).
- Maryland SDAT - SDAT Annual Report fee announcement (historic $300 LLC fee context).
- Maryland Business Express - Online Annual Report filing portal.
- Maryland General Assembly - Corporations & Associations § 4A-210 (principal office; good-standing context).
- Comptroller of Maryland - Types of Business Licenses (sales and use tax registration; 6% rate).
- IRS - Limited Liability Company (LLC) (pass-through default).
- IRS - Single Member Limited Liability Companies (disregarded entity).
- Legal Information Institute (Cornell) - 26 CFR § 301.7701-3 (entity classification).
- IRS - Partnerships (multi-member LLC default; pass-through reporting).
- IRS - Business Structures (annual report vs. federal tax return).
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.