Forming an LLC in Maryland costs $100 (plus a $3 expedite fee that's automatically included online) to file Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT), with online approval through Maryland Business Express in roughly 7 business days. The catch is the annual report — Maryland's "Personal Property Return" — at $300 per year, tied with Massachusetts for the highest in the U.S. and mandatory regardless of revenue. Maryland's top individual income tax rate is 5.75%, and most counties layer their own local income tax on top (up to 3.20%). The state's economy is uniquely federal-government adjacent: cybersecurity (NSA, Fort Meade), bioscience (NIH, Bethesda), and federal contracting dominate. For founders in those sectors, Maryland's costs are usually justified by ecosystem access; for everyone else, the $300/year annual report makes Virginia or Delaware more attractive.
How much does a Maryland LLC cost?
Budget at least $249 to launch a Maryland LLC in Year 1 — that covers the $100 state filing fee paid to the Maryland State Department of Assessments and Taxation, plus roughly $149 for a registered agent service if you go that route. The state processes Articles of Organization in 3–5 business days, so you won't wait long. Maryland's recurring cost to watch is the $300 Personal Property Return filed annually; skip it and SDAT can forfeit your LLC. Over five years, a Maryland LLC will run approximately $1,445 (one-time $100 filing + five $300 property returns + five $149 registered agent renewals). That annual $300 return is Maryland's version of what other states call a franchise or privilege tax — it isn't optional, and missing a single year triggers late fees and potential forfeiture, so calendar it the moment your LLC goes active.
Why form your LLC in Maryland
Cybersecurity (Fort Meade/NSA contracting), bioscience (NIH), and federal-government adjacent services. The $300 annual cost only makes sense if you’re tied to that ecosystem.
- Cybersecurity and defense capital — NSA, Fort Meade, federal contractors
- Bioscience cluster — NIH, FDA, NIST, Johns Hopkins, multiple pharma
- Federal contracting access
- Strong professional services market
- Auto-included expedited filing (~7 days)
- Major port — Port of Baltimore
Best fit for: Cybersecurity & defense · Bioscience (Bethesda) · Federal contracting
Don’t want to file yourself? Northwest Registered Agent files your Maryland LLC for $39 + state fee and acts as your registered agent the first year free.
How to form a Maryland LLC in 7 steps
- 1Search the Maryland business name database
Use Maryland Business Express to search names. The name must include "Limited Liability Company", "L.L.C.", or "LLC". Reserve a name for $25 (held 30 days) if needed.
- 2Appoint a Maryland Resident Agent
Maryland calls the registered agent role "Resident Agent." Required to have a physical Maryland street address. Can be the LLC owner if they're a Maryland resident, or a commercial service.
- 3File Articles of Organization
File online through Maryland Business Express for $100 (plus $3 expedite fee that's automatically included). Standard online processing is roughly 7 business days. The Articles include LLC name, principal office, Resident Agent, purpose, and signature.
- 4Draft an Operating Agreement
Not required by Maryland law but strongly recommended. Defines membership interests, voting, profit/loss splits, and dissolution. Banks routinely ask for it.
- 5Apply for an EIN with the IRS
Free at irs.gov, takes 10 minutes online. Required for opening a business bank account, registering with the Comptroller of Maryland, and filing federal taxes.
- 6Register with the Comptroller of Maryland
Register through Maryland Combined Registration Online (CRO) for sales and use tax (if you sell taxable goods/services), withholding tax (if you have employees), and any industry-specific accounts.
- 7Calendar the annual Personal Property Return
Maryland's annual report is called the "Personal Property Return" and is due April 15 every year through SDAT. The fee is $300 — among the highest in the U.S. and mandatory regardless of activity. Late filings incur penalties.
File directly with Maryland State Department of Assessments and Taxation (SDAT) →
Maryland LLC taxes & compliance
The $300 annual report is the highest in the country (tied with a few others) and is mandatory regardless of revenue. Counties layer their own income tax on top of state.
Ongoing compliance checklist
- Annual Personal Property Return — $300, due April 15 every year
- Sales and use tax filings (Comptroller)
- Withholding tax filings if you have MD employees
- Local county income tax (filed with personal Maryland income tax return)
- Federal income tax (Form 1065 multi-member, Schedule C SMLLC)
Registered agent rules
Required — Maryland calls this a "Resident Agent." MD street address required.
Hidden costs new Maryland LLC owners forget
- Annual Personal Property Return: $300/year — among the highest in the U.S.
- County income taxes layered on top of state (1.75%–3.20%)
- Top state individual income tax rate of 5.75%
- Combined sales tax: flat 6% (no local add-ons)
- Foreign LLC qualification: $100
- Late annual report: $30 + monthly interest
Should you use a formation service in Maryland?
You can absolutely file directly with the Maryland State Department of Assessments and Taxation (SDAT) for the $100 state fee. The reasons most Maryland owners use a service anyway are (1) registered-agent privacy — keeping their home address off public filings — and (2) calendar reminders for ongoing compliance.
Have Northwest form your Maryland LLC for $39 + state fee
Free registered agent for the first year. Real human support. Privacy-by-default — your home address stays off public filings.
Free tool
See the real 5-year cost of a Maryland LLC
Filing fee · registered agent · annual report · franchise tax — all calculated, year by year.
Open cost calculator for Maryland →Maryland's $300 personal property return: the fee that surprises new owners
Maryland collapses its annual report and personal property return into a single $300 filing due every April 15 with the State Department of Assessments and Taxation (SDAT). That April 15 deadline — identical to federal tax day — routinely blindsides owners who assume the state filing can wait until after they handle their federal return. Miss it and SDAT places the LLC in "not in good standing" status; miss it long enough and the entity is forfeited, requiring a reinstatement filing plus back fees to resurrect. A separate Maryland-specific wrinkle: even LLCs that own zero tangible personal property must still file the return and check a box affirmatively declaring that fact — there is no exemption from filing, only from the property tax itself. Maryland also imposes an 8% nonresident member withholding requirement on income distributed to out-of-state individual members, and 8.25% for nonresident corporate members — a cash-flow obligation that catches multi-member LLCs with passive out-of-state investors off guard. The optional pass-through entity (PTE) tax election, enacted in 2020, can partially offset this by letting the LLC pay state tax at the entity level, generating a federal SALT deduction workaround unavailable in many other states.
Year 1: $100 (SDAT Articles of Organization filing) + $149 (registered agent) + $300 (first Annual Report/Personal Property Return, due April 15 of the following year) = $549. By Year 5: approximately $1,496 total — four additional $300 annual filings plus four registered agent renewals at $149 each, with no separate franchise tax or publication fee adding to the tally.
Owners confuse Maryland's April 15 personal property return deadline with a tax filing they can extend. SDAT grants no automatic extension for this $300 combined annual report — unlike federal returns. Filing even one day late triggers a not-in-good-standing notice, and continued non-filing leads to forfeiture. Owners who request a federal extension assume the state deadline moved too, then discover their LLC has been administratively dissolved.
Maryland LLC: frequently asked questions
How much does it cost to start an LLC in Maryland?
Maryland SDAT charges $100 (plus $3 auto-included expedite fee) to file Articles of Organization through Maryland Business Express. The annual Personal Property Return is $300, due April 15 each year. Realistic year-one cost: $103. Ongoing yearly cost: $300 — making Maryland one of the most expensive states to maintain an LLC.
How long does it take to form an LLC in Maryland?
Online filings through Maryland Business Express auto-include expedited processing — approval typically in 7 business days. Mail filings without expedite take 4–6 weeks. Maryland also offers "rush" service for additional fees if you need 1–2 day processing.
What is the Maryland Personal Property Return?
It's Maryland's annual report for LLCs (and other business entities). Despite the name, it covers more than just personal property — it includes the standard LLC information confirmation. The fee is $300 every year, due April 15, regardless of whether the LLC owns any personal property. It's mandatory and one of the highest annual report fees in the country.
Does Maryland have an LLC franchise tax?
No traditional franchise tax. Pass-through LLCs pay no state-level entity tax. The $300 annual Personal Property Return functions similarly to a franchise tax in practice. Owners pay personal income tax on their share of LLC profits — graduated state rate up to 5.75%, plus county income tax (1.75%–3.20%).
When is the Maryland LLC annual report due?
April 15 each year. The fee is $300 (the Personal Property Return). File through SDAT's Maryland Business Express portal. Late filings incur a $30 penalty plus monthly interest. Continued non-filing leads to forfeiture of the LLC's charter.
Can a non-resident form an LLC in Maryland?
Yes. Maryland has no residency requirement for LLC members or managers. You only need a Maryland Resident Agent. Out-of-state owners commonly use a commercial Resident Agent service.
Is Maryland a good state to form an LLC?
For businesses tied to federal contracting, cybersecurity (NSA/Fort Meade), bioscience (NIH/Bethesda), or the Baltimore-Washington corridor: yes. For most other businesses, the $300 annual report fee makes neighboring Virginia ($50/year) or Delaware ($300 franchise tax but no business income tax for non-DE income) more attractive. Maryland costs more long-term than its surface fees suggest because of the county income tax layer.
What's the Maryland sales tax rate?
Maryland has a flat 6% state sales tax with no local add-ons — one of the simplest sales tax systems in the U.S. If you sell taxable goods or services, register with the Comptroller of Maryland through Combined Registration Online.