Starting an LLC in Maryland

Maryland LLC formation goes through the State Department of Assessments and Taxation (SDAT), not the Secretary of State. The filing fee is $100 by mail or $150 online. Processing takes 7 to 10 business days. Here is the full breakdown.

Why Form a Maryland LLC

A limited liability company separates your personal assets from business debts and lawsuits. Your house, savings, and personal accounts are generally protected if the LLC faces legal trouble. Maryland LLCs default to pass-through taxation, keeping profits on your personal return without a corporate tax layer.

Maryland is home to a large federal contractor base, professional services firms, and tech companies. An LLC gives all of them flexible liability protection with minimal governance overhead.

Cost Summary

Item	Amount
Articles of Organization (mail)	$100
Articles of Organization (online)	$150
Personal Property Tax Return (annual)	$300
Resident agent service (our fee)	$99/year
Expedited filing (optional)	varies
EIN from IRS	Free

Maryland's $300 annual report is one of the highest in the nation. Budget for it from day one.

Formation Steps

1. Choose Your LLC Name

The name must include "Limited Liability Company," "LLC," or "L.L.C." and be distinguishable from other entities on file with SDAT. Search the Maryland Business Express database before committing.

Avoid names suggesting banking, insurance, or government affiliation unless you actually operate in those fields.

2. Appoint a Resident Agent

Maryland requires every LLC to designate a resident agent with a physical Maryland address. The agent accepts legal documents and SDAT correspondence. PO boxes and virtual offices do not qualify. An entity cannot be its own agent.

Maryland Registered Agent.co fills this role for $99/year. Our physical Maryland address goes on your formation documents and keeps your personal address off public records.

3. File Articles of Organization

Submit to SDAT via Maryland Business Express (online, $150) or by mail ($100). Include:

• LLC name
• Principal office address
• Resident agent name and physical address
• Purpose of the LLC
• Management structure
• Organizer information

Standard processing takes 7 to 10 business days. Expedited options may be available for additional fees.

4. Create an Operating Agreement

Maryland does not require this to be filed with SDAT, but your LLC needs one internally. It defines ownership, profit distribution, management roles, and exit procedures. Banks request it for business accounts. Courts rely on it during disputes.

5. Get an EIN

Free from IRS.gov. Takes about ten minutes. Required for opening business bank accounts, hiring, and filing taxes. Never pay a third party for something the IRS provides at no cost.

6. Maintain Good Standing

After formation, compliance requires:

• Maintaining a resident agent at all times
• Filing the Personal Property Tax Return by April 15 ($300)
• Keeping business and personal finances separate
• Handling state and federal tax obligations

Failure to file or maintain a resident agent leads to forfeiture of your entity's right to do business.

The Resident Agent Requirement

Every Maryland LLC needs a resident agent from the day of formation. The agent address becomes public record through SDAT. Using your home address means anyone can find it by searching your entity name.

Our $99/year service covers:

• Physical Maryland address on all filings
• Same-day scanning of documents received
• April 15 deadline reminders
• Secure portal for document management
• Address privacy on SDAT records

Common Questions

Can non-residents form a Maryland LLC? Yes. No residency requirement for LLC formation. You do need a resident agent with a physical Maryland address.

How long does formation take? 7 to 10 business days standard. Online filing through Maryland Business Express may have expedite options.

What makes Maryland different? SDAT handles everything (not Secretary of State), and the annual filing is $300 — significantly higher than most states.

Next Steps

File your Articles of Organization with SDAT ($100 mail / $150 online). List Maryland Registered Agent.co as your resident agent. Enroll with us for $99/year and your compliance foundation is set.