Single-Member LLC in Maryland (2026)

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

A Maryland single-member LLC is, by federal default, a disregarded entity - the IRS ignores it for income tax and you report profit on your own return. You form it by filing Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT), keep a Maryland resident agent, and file the Annual Report (Form 1) by April 15 each year, which SDAT lists at a $300 filing fee. It still gives you a liability shield a sole proprietor lacks.

Quick Answer

Federal tax default
Disregarded entity - reported on the owner's return (Schedule C)
Formation agency
Maryland State Department of Assessments and Taxation (SDAT)
Formation document
Articles of Organization (confirm current fee with SDAT)
Resident agent
Required - Maryland street address
Annual report
Form 1, due April 15; $300 filing fee (per SDAT)
Liability
Separate entity - limited liability for the owner

What a Single-Member LLC Is in Maryland

A single-member LLC (SMLLC) is a limited liability company with exactly one owner, called a member. It combines the liability protection of a corporation with the simplicity of a sole proprietorship. In Maryland the entity is created under the state's LLC statute and registered with the Maryland State Department of Assessments and Taxation (SDAT). Unlike a sole proprietorship, the LLC is a separate legal person, so - if you respect the separation - your personal assets are generally shielded from the business's debts and lawsuits.

Being a single-member LLC changes how you are taxed but not what the entity is: it is still a full LLC under Maryland law with one owner. Many freelancers, consultants, landlords, and small-shop owners choose the structure because it is inexpensive to run and keeps personal and business liability apart. To compare it with other paths, see our how to form an LLC hub and the S-corp vs. LLC comparison, and browse the glossary for terms used below.

Default Tax Treatment: Disregarded Entity

By federal default, a domestic single-member LLC is a disregarded entity. The IRS treats the business as if it did not exist separately from its owner for income tax purposes, so you do not file a separate business income tax return. Instead, an individual owner reports the LLC's income and expenses on Schedule C (or Schedule E for rental real estate) attached to their Form 1040, and net profit is subject to self-employment tax. Maryland conforms to this treatment for state income tax, so the profit flows onto your Maryland individual return.

You are not stuck with the default. A single-member LLC can elect to be taxed as a corporation by filing IRS Form 8832, or as an S corporation by filing Form 2553, which some owners do to reduce self-employment tax once profit is high enough. An election adds payroll and filing obligations, so weigh it carefully. The disregarded-entity status is purely a tax label; it does not reduce the LLC's liability protection. For how the returns work in practice, see Maryland LLC tax filing.

Forming the LLC: Articles of Organization and SDAT

You create a Maryland LLC by filing Articles of Organization with SDAT, either online through the Maryland Business Express portal or by mail. The Articles state the LLC's name (which must include an LLC designator and be distinguishable from existing names), its purpose, the resident agent, and the principal office. SDAT charges a filing fee to process the Articles; confirm the current amount and any expedited-service charge on the SDAT fee schedule before you submit, rather than relying on a figure that may change.

Before filing, check that your desired name is available using the Maryland business entity search, and review the detailed Maryland articles of organization guide for line-by-line contents. Processing times vary between standard and expedited filings. Once SDAT approves the Articles, your LLC legally exists and you can move on to a resident agent, EIN, and an operating agreement.

Resident Agent and Operating Agreement

Maryland law requires every LLC to continuously maintain a resident agent (the Maryland term for a registered agent) with a physical Maryland street address who can accept legal service of process and official mail during business hours. The agent can be an adult Maryland resident, a Maryland entity, or a qualified commercial provider. If your agent resigns or moves and you do not replace them, the LLC can fall out of good standing. See Maryland registered agent for who qualifies and how to change agents.

Maryland does not require a single-member LLC to have a written operating agreement, and you do not file one with the state. Even so, adopting one is strongly advisable: it documents that the LLC is a separate entity, sets rules for management and distributions, and helps preserve the liability shield by showing you treat the company as distinct from yourself. For an SMLLC it is short, but it is one of the best pieces of evidence that the entity is real.

EIN, Annual Report, and Maryland Taxes

A single-member LLC that stays a disregarded entity and has no employees can often use the owner's Social Security number, but you need a free federal EIN if you hire employees, elect corporate or S-corp taxation, or open certain business bank accounts - get it directly from the IRS, never a paid site. Maryland requires every LLC to file an Annual Report (Form 1) with SDAT, due April 15 each year; SDAT lists the annual filing fee as $300. Businesses that own, lease, or use personal property in Maryland also file a personal property tax return with the Annual Report.

Beyond the annual report, register with the Comptroller of Maryland for any sales and use tax or employer withholding you owe, and pay Maryland income tax on the profit that passes through to you. Keep the LLC in good standing by filing on time - missing the Annual Report can lead to forfeiture of the LLC's right to do business. For the ongoing filing calendar, see Maryland annual report and Maryland LLC cost; if you close, follow how to dissolve an LLC in Maryland.

Frequently Asked Questions

How is a Maryland single-member LLC taxed?

By federal default it is a disregarded entity, so the business is ignored for income tax and the owner reports profit and loss on their own return, usually Schedule C. Maryland follows this treatment for income tax. You can instead elect corporate or S-corp taxation by filing with the IRS.

How do I form a single-member LLC in Maryland?

File Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT) and appoint a Maryland resident agent. Confirm the current filing fee with SDAT before submitting. After formation, get an EIN if needed and file the annual report each year.

Does a Maryland LLC have to file an annual report?

Yes. Every Maryland LLC files an Annual Report (Form 1) with SDAT, due April 15 each year, with a filing fee that SDAT lists as $300. Businesses that own or lease personal property also file a personal property return. Missing it can lead to forfeiture of good standing.

Do I need an EIN for a single-member LLC in Maryland?

Not always. A single-member LLC with no employees that stays a disregarded entity can often use the owner's Social Security number, but you need a free EIN from the IRS if you hire employees or elect corporate or S-corp taxation. Many owners get one anyway for banking.

Is a resident agent required for a Maryland LLC?

Yes. Every Maryland LLC must continuously maintain a resident agent with a Maryland street address to receive legal and state documents. The agent can be an individual Maryland resident or an authorized company. Failing to keep one can jeopardize the LLC's good standing.

Does a single-member LLC protect me from business debts?

Generally yes. An LLC is a separate legal entity, so members are usually not personally liable for business debts, unlike a sole proprietor. The shield can be lost through commingling funds or fraud, so keep separate finances and follow formalities to preserve protection.

Related

More Maryland business guides

Form An Llc Annual Report Registered Agent Articles Of Organization Llc Cost Dba Filing Operating Agreement Llc Tax Filing Business Entity Search Business License Dissolve An Llc Get An Ein Start A Business

Sources

  1. Maryland State Department of Assessments and Taxation - Business Services.
  2. Maryland SDAT - Annual Report & Personal Property Return (Form 1; April 15; $300 fee).
  3. Maryland SDAT - Business Registrations and Filings (Articles of Organization; resident agent).
  4. Maryland Business Express - Start and Register a Business.
  5. Comptroller of Maryland - Business Taxes.
  6. Comptroller of Maryland - Sales and Use Tax.
  7. Comptroller of Maryland - Business Income Tax.
  8. IRS - Single Member Limited Liability Companies (disregarded entity).
  9. IRS - Limited Liability Company (LLC).
  10. IRS - About Form 8832, Entity Classification Election.
  11. IRS - About Form 2553, Election by a Small Business Corporation.
  12. IRS - Employer ID Numbers (EINs) (free).
  13. IRS - Schedule C (Profit or Loss from Business).
  14. Cornell Law School Legal Information Institute - Limited liability company (Wex).
  15. Cornell Law School Legal Information Institute - Disregarded entity (Wex).

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, the Comptroller of Maryland, and the IRS before acting.