Maryland LLC Cost: Filing Fees Explained (2026)
A Maryland LLC costs $100 to form by mail, or $150 online because online filings add a mandatory $50 expedited fee, paid once to the Maryland State Department of Assessments and Taxation (SDAT). After that, the main recurring cost is the $300 Annual Report due to SDAT by April 15 every year. Maryland has no franchise tax.
Quick Answer
- Formation fee
- $100 by mail; $150 online (includes $50 expedited), 2026
- Annual cost
- $300 Annual Report (Form 1), due April 15
- Agency
- Maryland State Department of Assessments and Taxation (SDAT)
- Expedited
- $50 surcharge; same-day $325 online / $425 dropbox
- Name reservation
- $25 (optional, 30 days)
- Franchise tax
- None in Maryland
One-Time Cost to Form a Maryland LLC
The one required cost to create a Maryland LLC is the Articles of Organization filing fee paid to SDAT. The base fee is $100. If you file by mail without expediting, $100 is all you pay to form. If you file online through Maryland Business Express, the state adds a mandatory $50 expedited fee, so the online total is $150. Online filings paid by card or PayPal also carry a 3% technology fee.
Everything else at formation is optional. You do not have to reserve a name, buy a resident agent service, or order certified copies to have a valid LLC. The step-by-step process is covered in how to form an LLC in Maryland; this page focuses on what each item costs. For the national picture see how much an LLC costs.
Maryland LLC Fee Table (2026)
Every figure below is verified against the Maryland Business Express fee schedule or SDAT, effective 2026. State fees are set by Maryland, not by any filing service.
| Item | Form | Fee (2026) | Required? |
|---|---|---|---|
| Articles of Organization (by mail) | Articles of Organization | $100 | Yes |
| Articles of Organization (online) | Articles of Organization | $150 ($100 + $50 expedited) | Yes (online) |
| Expedited processing | Any charter filing | $50 | Optional (auto online) |
| Same-day / rush processing | Any charter filing | $325 online; $425 dropbox | Optional |
| Name reservation (30 days) | Corporate Name Reservation | $25 | Optional |
| Change of resident agent / principal office | Resolution to Change | $25 | As needed |
| Certified copy | Copy request | $20 (+$1/page) | Optional |
| Federal EIN | IRS Form SS-4 | $0 (free) | Usually |
| Annual Report (each year) | Form 1 | $300 | Yes |
| Articles of Cancellation (to close) | Articles of Cancellation | $0 ($50 expedited) | To dissolve |
Recurring Cost: The $300 Annual Report
The defining recurring cost of a Maryland LLC is the $300 Annual Report. Every Maryland LLC - active, dormant, or with no income - must file Form 1, the Annual Report and Business Personal Property Return, with SDAT by April 15 each year and pay the $300 fee. Paying online adds a 3% technology fee. Missing the deadline puts the LLC out of good standing and, if unresolved, can lead to forfeiture. See the Maryland Annual Report guide for filing details.
Maryland is notable for having no franchise tax and no flat LLC entity income tax, so unlike states such as California (which charges an $800 annual franchise tax) or Delaware (which charges a $300 annual LLC tax), Maryland's $300 annual report is the primary ongoing state charge. Compare with the national LLC cost overview to see where Maryland sits.
The $300 is flat regardless of the LLC's size, so a two-person consultancy and a mid-sized distributor pay the same report fee; only their business personal property tax differs. Because the fee does not vary with revenue, it is easy to forecast: multiply $300 by the number of years you expect to operate, add the one-time formation fee, and you have the baseline state cost. Missing a year does not erase the obligation - unpaid reports accumulate and must be cleared before the LLC returns to good standing.
Business Personal Property Tax
Beyond the flat $300, some Maryland LLCs owe business personal property tax on equipment, furniture, tools, and inventory used in Maryland. This is reported in the personal property return portion of Form 1. Maryland exempts a business from the assessment when the total original cost of its personal property is under $20,000; the annual report is still required. Assessed property is taxed at the local (county or municipal) rate, so the dollar amount varies by jurisdiction and by the value of your equipment.
Most home-based and service LLCs with little equipment fall under the $20,000 threshold and owe no personal property tax - only the $300 report. Retail and equipment-heavy businesses should budget for the local tax on top of the report fee.
Optional and Situational Costs
Several costs are optional or depend on your situation:
- Name reservation - $25. Holds a name for 30 days before you file. Not required if you are ready to file the Articles of Organization.
- Expedited or same-day processing - $50, $325, or $425. Speeds up SDAT review. Online filings already include the $50 expedite; same-day is $325 online or $425 for hand-delivered documents.
- Resident agent service - varies. You can be your own resident agent for free, or hire a commercial service. Changing your agent later costs $25.
- Trader's license and sales tax - varies. A trader's license from the Clerk of the Circuit Court is priced on a sliding inventory scale; the Comptroller's sales and use tax license is free. See business licenses in Maryland.
- Certified copies - $20. Some banks or lenders ask for a certified copy of the Articles or a certificate of good standing.
EIN and Federal Costs
A federal Employer Identification Number (EIN) is free directly from the IRS - you never pay a fee for an EIN, and any site charging for one is a paid middleman. Most Maryland LLCs need an EIN to open a bank account, hire employees, or file taxes. By default the IRS taxes a single-member LLC as a disregarded entity and a multi-member LLC as a partnership; an S-corporation election can change that but does not change your SDAT costs.
Sample First-Year and Ongoing Totals
For a typical single-member Maryland LLC formed online with no employees and under $20,000 of personal property, first-year state costs are roughly the $150 online formation fee plus the $300 Annual Report - about $450 in year one, then $300 each following year (plus the 3% online technology fee). A mail filer who does not expedite pays $100 to form plus $300 for the report. These totals exclude optional items, professional fees, and any local trader's license or personal property tax.
Because a filing service is never required, the honest floor to start and run a Maryland LLC is the state's own fees. Watch for services that bundle the free EIN or the $100 formation into a higher package price. Compare states with the sibling page how to form an LLC in Maryland and the concept page what is an LLC.
Foreign LLC and Other Situational Fees
If your LLC was formed in another state but will do business in Maryland, you register as a foreign LLC by filing a Foreign Limited Liability Company Registration with SDAT. The filing fee is the same $100 as a domestic Articles of Organization (again with the $50 expedited surcharge if filed online), and the foreign LLC then owes the same $300 Annual Report each year. In other words, operating across state lines does not lower Maryland's baseline costs; it adds a home-state filing plus Maryland's.
A few other charges appear only in specific situations. Ordering a certificate of status (good standing) to satisfy a bank or lender is a small SDAT fee; amending your Articles later (for example, to change the LLC name) is a separate charter filing; and reinstating a forfeited LLC requires paying every missed $300 Annual Report plus the reinstatement filing. None of these are part of routine formation, but they are worth knowing so a surprise fee does not derail your budget. The predictable core remains the $100 formation and the recurring $300 report.
State fees are only part of the real cost of running a Maryland LLC. Depending on your business you may also pay for a local trader's license (sliding scale by inventory), professional or occupational licenses, local zoning or health permits, business insurance, and a registered agent service if you choose not to serve yourself. Home-based and online LLCs often keep total outlay near the state minimum, while retail, food, and equipment-heavy businesses layer on license fees and the local business personal property tax once their equipment exceeds the $20,000 threshold. Mapping these early - alongside your federal EIN and tax setup - gives a realistic first-year figure rather than just the $100 headline. For the wind-down side of the ledger, note that closing through Articles of Cancellation is free at standard speed.
Frequently Asked Questions
How much does it cost to start an LLC in Maryland?
The state fee for Articles of Organization is $100 by mail or $150 online (online adds a mandatory $50 expedited fee), paid once to SDAT. Every LLC then pays a $300 Annual Report each year.
What is the annual cost of a Maryland LLC?
The $300 Annual Report fee to SDAT, due April 15, plus a 3% technology fee if paid online. LLCs with over $20,000 of personal property may also owe local business personal property tax.
Why is it cheaper to file a Maryland LLC by mail?
Online filings include a mandatory $50 expedited fee, making the online total $150. A mailed Articles of Organization can be filed at the $100 base fee, but SDAT takes longer to process it.
Is there an expedited filing fee in Maryland?
Yes. Expedited processing adds $50 and is automatic online. Same-day service is $325 for online filings by the cutoff, or $425 for documents hand-delivered to SDAT's drop box.
Does Maryland charge an LLC franchise tax?
No. Maryland has no LLC franchise tax. The main recurring state cost is the $300 SDAT Annual Report, plus any local business personal property tax on assessed equipment.
Related
- How much does an LLC cost? (cluster hub)
- How to form an LLC in Maryland
- Maryland LLC Annual Report and taxes
- Maryland resident agent requirements
- Business licenses in Maryland
- How to dissolve an LLC in Maryland
- How to get an EIN (free)
- Maryland Articles of Organization
- How to form an LLC (national)
Sources
- Maryland Business Express - Fee Schedule ($100 Articles of Organization; $50 expedited; $325 rush; $300 Annual Report; $25 resident agent change; $20 certified copy; $0 cancellation).
- Maryland SDAT - Maryland Business Services (Charter Division).
- Maryland SDAT - Articles of Organization (LLC) form (PDF) ($100 fee).
- Maryland SDAT - Corporate Name Reservation Application (PDF) ($25 fee).
- Maryland SDAT - Form 1, Annual Report and Business Personal Property Return (PDF) ($300; April 15; $20,000 exemption).
- Maryland Business Express - Online business filing portal.
- Maryland General Assembly - Corporations & Associations § 1-203, Recording, filing, and other fees.
- Comptroller of Maryland - Types of Business Licenses (sales tax license is free).
- IRS - Get an Employer Identification Number (free EIN).
- IRS - Limited Liability Company (LLC) (default tax classification).
- Legal Information Institute (Cornell) - 26 CFR § 301.7701-3 (entity classification election).
- IRS - Business Structures (no federal cost to choose LLC status).
- Legal Information Institute (Cornell) - Limited liability company (LLC) (definition).
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 before acting.