A Maryland LLC is one of the most simple, cost-effective, and quick business structures to form. Even so, navigating the formation process can seem daunting without clear guidance and an actionable plan.
In this How to Start an LLC in Maryland guide, we’ll break down everything you need to know to form your LLC, from the steps you’ll need to take to get started to maintaining your structure.
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In order to form an LLC in Maryland, you’ll need to complete the following steps:
In the sections below, we’ve broken down each of these steps in more detail.
The first thing you’ll need to do before getting started is picking the right name for your LLC. This is important because your business’s name will need to represent your brand accurately, as well as be as memorable as possible.
In Maryland, all LLC names need to abide by the following statutory guidelines in order to be accepted by the Secretary of State:
These naming requirements are covered in greater detail in the Maryland General Assembly’s guidelines.
Keep in mind that even though picking an LLC name in itself has no cost, there are certain fees that can be associated with the overall process.
If you’re not yet ready to launch your business and still need a little more time, you can choose to reserve your desired LLC name for later by submitting a Corporate Name Reservation Application with the Maryland Department of Assessments and Taxation ($25 fee).
This will keep anyone from being able to take the name you plan to use for 30 days according to Title 1, Section 505 of The Maryland Code.
To ensure this is processed as quickly as possible you’re always able to pay for expedited services — which cost an additional $20 on top of the base filing fee.
Note: You can check that the name you plan to reserve is actually available by performing a Business Entity Search on the Maryland Business Express website.
Another potential cost associated with naming your LLC is registering a trade name — which is also sometimes called a “doing business as” (or DBA) name. This is essentially a nickname that you can choose to register for your business to operate under — particularly if you’re not content with your LLC’s legal name.
Registering a DBA name can be done by filing a completed Trade Name Application with the Charter Division of the Department of Assessments & Taxation, or submitting an application online through the Maryland Business Express website.
Regardless of how you choose to file, you’ll be required to pay a $25 fee. To speed up the registration of your LLC’s trade name you can pay an additional $50 for expedited processing — bringing the total to $75.
Note: Trade names in Maryland will only last for a period of five years before they must be renewed again. Renewals may be submitted within the last six months of your registration.
Finally, you’ll want to focus on securing a good domain name (which is your website’s URL address) for your business. For this, try to focus on choosing one that’s easy for customers to remember, relevant to your business, and accurately reflects your brand.
After confirming the domain name you want to use is actually available, you can purchase it through a trusted registrar.
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The next step you’ll need to take toward forming your LLC is to pick a resident agent. You may also see this referred to as a registered agent — these two terms are interchangeable.
This is an individual or business entity that accepts legal correspondence on behalf of your business, such as service of process, notice of lawsuits, and official government communications; you’re required to continuously maintain one as long as your LLC is active.
Your resident agent can be an individual or business entity, but will need to satisfy the following requirements:
You can even act as your own resident agent if you’re looking to save money — though we don’t typically recommend this as you’re much more likely to suffer fines and penalties due to non-compliance than if you just hire a professional service.
On top of this, you’ll lose any anonymity your LLC would have given you since your name, address, and contact information will be publicly available.
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Note: To have a look at some of our other top recommendations, you can also check out our Best Registered Agent Service of 2024 guide.
In Maryland, the Articles of Organization is the filing document that you’ll need to submit with the Secretary of State in order to officially register your LLC (this is also referred to as the Certificate of Formation in other states).
Both domestic and foreign LLC filings will be required to pay the same processing fee of $100.
To complete your Articles of Organization, you’ll need to have the following information available:
We’ve covered the two main ways in which to submit this document with the Department of Assessments and Taxation in the sections below.
In most cases, submitting your Articles of Organization electronically through the Maryland Business Express platform is the fastest and easiest way of filing.
However, you should be aware that you’ll be required to create an account for this platform before you can begin the filing process.
Another option is to submit a paper application by downloading and completing either the Articles of Organization (domestic entities) or Limited Liability Company Registration form (foreign entities).
After this, you’ll need to mail the originally executed copy of your LLC formation document, alongside a check/money order for the $100 filing fee, to the following address:
Department of Assessments and Taxation
301 W. Preston Street
Baltimore, MD 21201-2392
Once this is completed, the next step you’ll need to take is to create an operating agreement.
This is an internal document that clearly outlines the ownership and management structure of your company in order to reduce potential future conflict.
While this document isn’t legally mandated in Maryland, all LLCs are recommended to have one as it can help maintain both: smooth operations and your LLC’s corporate veil.
A number of companies provide drafting services for operating agreements online, typically for a fee of around a few hundred dollars. However, it’s quite easy to sort this out by yourself if you want to save money, and you can even find a number of free templates online to help with this.
Even though it’s not a legal requirement (unless your LLC has employees or multiple members), all Maryland LLCs should apply for an Employer Identification Number (EIN).
This is a free, nine-digit number used by the IRS to identify your business and keep track of its tax reporting — much like a Social Security Number (SSN) for individuals.
You’ll need an EIN to be able to:
On top of this, using this federal tax identification number instead of a Social Security Number (SSN) helps to protect your personal information and safeguard your anonymity as the business owner of your LLC.
You can quickly apply for an EIN for your LLC online through the IRS website. You’re also able to submit a paper application using Form SS-4 either via fax to (855) 641-6935, or by mailing it to the following address:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Note: Don’t worry if you don’t already have an SSN, it’s not necessary to have one in order to apply for an EIN — instead, you can just leave Section 7b of the application blank and call the IRS on (267) 941-1099.
Starting January 2024, the vast majority of LLC owners will be required to file a Beneficial Ownership Information (BOI) Report with the US Financial Crimes Enforcement Network (FinCEN).
This is part of an initiative by the U.S. government to stop individuals and entities engaging in illegal or unethical activities from being able to conceal this using “opaque ownership structures”, like shell companies, to hide their true identities.
Existing LLCs will be able to file this report anytime between January 1, 2024, and January 1, 2025, while new LLCs will have up to 90 days after the date they were initially formed to do so (30 days for LLCs formed after the start of 2025).
Keep in mind that failure to file your LLC’s BOI report on time can result in exorbitantly high fines (i.e., $591 per day) or even jail time (up to two years).
Note: Not every LLC owner is required to file a BOI report. For example, companies with more than 20 full-time employees, accounting firms, and banks are exempt. For a full list of filing exemptions, you can have a look at FinCEN’s website.
In order to keep operating legally in the state of Maryland, you’ll need to file an annual report with the Secretary of State every year.
Don’t worry if you’re not sure how to complete this step, as we’ve detailed all the information you’ll need to know in the sections below.
Once you’ve formed your LLC, you’ll be expected to submit an annual report to the Maryland State Department of Assessments and Taxation (SDAT) by April 15 each year to ensure accurate business records and regulatory compliance.
This report, which costs $300 to file, is essential to maintain your business in good standing with the state and avoid serious penalties. In fact, failure to file on time can result in penalties, including a $100 late fee that increases by $25 monthly.
You can do so either online through the Maryland Business Express platform or by mail. Extensions are available, but it’s essential to adhere to the deadlines to prevent further consequences.
Note: After two consecutive years of non-compliance, your LLC’s business license could be forfeited.
When considering where would be the best place to form your business, Maryland is a strong choice for a number of factors.
One of the state’s standout advantages is its highly educated workforce — which comes from a top-rated primary and secondary school system and a network of 55 accredited colleges and universities. This is a huge plus for businesses, which are able to draw upon a pool of skilled and innovative professionals in order to drive productivity, efficiency, and growth.
Maryland’s robust transportation infrastructure is another central reason this state is so popular among businesses, as it facilitates efficient connectivity to key markets and allows businesses to remain competitive and operational in an increasingly digital landscape.
Additionally, while it doesn’t offer the lowest business tax rates, it ranks in the top ten lowest states for the lowest effective business tax rate — a metric that measures a state’s tax burden relative to economic output. This favorable tax environment, coupled with the state’s strategic location and educated workforce, can significantly benefit businesses seeking to establish or expand operations.
Regardless, keep in mind that the best state to form your LLC is almost always the state that you will be operating in; this is because otherwise you’ll likely be required to register as a foreign LLC in your home state, meaning that you’ll need to pay registration and maintenance fees twice.
Recommended: More than 84% of our readers form their LLC through a specialized LLC formation service in order to save time and avoid being caught up in procedural rigmarole.
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Mailing Address:
Charter Division
8th Floor 301 W. Preston St.
Baltimore, MD 21201-2395
Physical Address:
301 W. Preston St.
Baltimore, MD 21201
Monday – Friday, 8:30 a.m. to 5 p.m.
Contact Information:
Email: sdat.serviceofprocess@maryland.gov
Phone: (410) 767-1184
In Maryland, the main cost associated with forming an LLC is the $100 filing fee that must be paid to submit your Articles of Organization with the State Department of Assessments and Taxation (SDAT).
However, there are a number of optional fees you may also be faced with — which we cover in more depth in our Maryland LLC Cost guide.
To form an LLC in Maryland, you need to choose a unique business name that complies with state regulations, selecting an individual to perform resident agent services, and file Articles of Organization with the State Department of Assessments and Taxation.
You can find a more detailed explanation of each of these steps in our guide on How to Start an LLC in Maryland.
LLCs in Maryland are taxed as pass-through entities, meaning profits and losses are reported on the owners’ personal tax returns.
While there’s no state-level entity tax for LLCs with a standard tax structure, this is not the case for LLCs that elect to be taxed as a Maryland corporation.
The main benefits associated with forming an LLC in Maryland include the state’s highly educated workforce, its robust infrastructure, and a favorable business environment for entrepreneurs.
If you’re interested in getting started, we recommend checking out our article on How to Start an LLC.
Information on this page was researched and gathered from a multitude of sources and was most recently updated on September 5, 2024
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