CobaltProsper

How to start an LLC in Maryland

By Brent Chudoba, editor Updated

Forming an LLC in Maryland costs $100 to file the Articles of Organization with the Maryland Secretary of State. After that you file an annual report of $300. Maryland charges no franchise tax on a standard LLC. Registered agent must be a Maryland resident (18+) or a Maryland-qualified entity at a physical Maryland street address; P.O. Boxes not accepted. Online filing via Maryland Business Express incurs a 3% technology fee. Form 1 Annual Report + Personal Property Return is required every year ($300 fee); a 2022 proposal to eliminate this fee for online filers was never enacted, so it still applies as of tax year 2025.

How much does it cost to start an LLC in Maryland?

Maryland LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization)$100
Annual report$300/year
Franchise or business taxNone
Registered agentRequired

Source: Maryland Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Maryland?

  1. Name your LLC. Pick a name that is available and meets Maryland naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Maryland requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization. Submit it to the Maryland Secretary of State and pay the $100 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Maryland charges $300 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Maryland have a franchise tax on an LLC?

No. No franchise tax imposed on standard LLCs in Maryland. Franchise tax applies only to public service companies (gas, electric, telephone) at 2% of gross receipts.

How is an LLC taxed in Maryland?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Maryland has a state individual income tax with a top rate of 6.5% (graduated brackets), so those profits are taxed on your Maryland return on top of federal tax. Graduated from 2% on the first $1,000 of taxable income up to 6.5% on income over $1M ($1.2M for joint filers/HOH/qualifying surviving spouse). The 2025 Budget Reconciliation and Financing Act (Ch. 604) added two new top brackets for tax years beginning after 12/31/2024: 6.25% on $500,001-$1,000,000 ($600,001-$1,200,000 joint) and 6.5% above that. All 23 counties and Baltimore City also levy a local income tax on top of the state rate, ranging from 2.25% (lowest, e.g. Worcester County) to 3.30% (highest, Dorchester County for TY2025; local rates can change annually).

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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