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How do I form an LLC in Maryland?

Federal & State Law Editorial TeamLast reviewed: 2026-04-30

Maryland LLCs are governed by the Maryland Limited Liability Company Act, Md. Code, Corp. & Assoc. §§ 4A-101 et seq.

1. Filing Fee and Processing Time

  • Articles of Organization: $100 filing fee with the Maryland State Department of Assessments and Taxation (SDAT).
  • Processing: 4-6 weeks standard. Expedited service: $50 extra for 7-10 business day processing; same-day available in person at the Baltimore office.
  • Online filings via Maryland Business Express are typically processed faster than mail.

    • 2. Name Reservation

  • Optional. 30-day reservation for $25 ($75 expedited). Name must include "Limited Liability Company," "LLC," "L.L.C.," "L.C.," or "LC" (Md. Code, Corp. & Assoc. § 4A-208).

    • 3. Resident Agent

  • Required under Md. Code, Corp. & Assoc. § 4A-210.
  • Must be a Maryland resident individual OR a Maryland corporation, with a Maryland street address.

    • 4. Operating Agreement

  • Permitted but not required (Md. Code, Corp. & Assoc. § 4A-402). Not filed with the state.
  • Recommended for multi-member LLCs.

    • 5. Annual Report and Personal Property Return — $300

  • Required. Due April 15 each year (or June 15 if extension granted).
  • Filing fee: $300 — among the highest in the country.
  • Required even if the LLC has no business personal property.
  • Failure to file results in forfeiture of right to do business (administrative dissolution) after delinquency.

    • 6. State Taxes

  • Maryland has a graduated individual income tax (top rate 5.75%) on pass-through LLC income.
  • Plus county income tax (2.25%-3.20% depending on county) — Maryland is unique in having statewide local income taxes.
  • LLCs taxed as C-corps pay 8.25% Maryland corporate income tax.
  • Pass-through entity (PTE) tax election available (Md. Tax-Gen. § 10-102.1) for SALT cap workaround.
  • Sales and use tax (6%) registration if selling taxable goods.

    • 7. Federal EIN

  • Required for multi-member LLCs and any LLC with employees.

    • 8. Professional LLCs (PSCs / PLLCs)

  • Licensed professionals must form a Professional Service LLC under Md. Code, Corp. & Assoc. § 4A-1101.

    • 9. Local Licenses

  • Most counties require trader's licenses and specific occupational permits (Maryland has unique county-level trader's license requirements based on inventory value).

    • This is legal information, not legal advice.

    When to Talk to a Lawyer
    • You are forming a Professional Service LLC requiring board approval
    • You want to make the PTE tax election
    • Your LLC will hold significant business personal property triggering the personal property return
    Related Statutes & Laws
    • Md. Code, Corp. & Assoc. § 4A-202
    • Md. Code, Corp. & Assoc. § 4A-208
    • Md. Code, Corp. & Assoc. § 4A-210
    • Md. Code, Corp. & Assoc. § 4A-402
    • Md. Code, Corp. & Assoc. § 4A-1101

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.