Indiana vs Maryland LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026Indiana charges $95 to form an LLC; Maryland charges $150. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.
Over a rolling three-year window, Indiana runs about $907 less in total state fees than Maryland. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.
On speed, Indiana typically clears standard online filings faster than Maryland. Both states offer expedited tiers at an additional cost for filers on tight timelines.
For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.
Key differences at a glance
- Indiana costs $55 less to form ($95 vs $150).
- Indiana is $284 per year cheaper to maintain ($116 vs $400).
Where each state fits
For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.
What each state offers that the other does not
Only Maryland
- Paid expedited tier
Both states
- Online filing
- No entity-level franchise or LLC tax
- No publication requirement
- Operating agreement not statutorily required
Three-year cost, side by side
Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.
Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).
What it costs under your specific situation
The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.
| Scenario | Year 1 | Each year after | 3-year total |
|---|---|---|---|
| You live in Indiana, business operates there No foreign LLC registration needed. You pay Indiana fees only. | $211 | $116 | $443 |
| You live in Maryland, business operates there No foreign LLC registration needed. You pay Maryland fees only. | $550 | $400 | $1,350 |
| Non-resident forming in Indiana with operations elsewhere You pay Indiana's fees plus a typical home-state foreign LLC registration of about $200 per year. | $411 | $316 | $1,043 |
| Non-resident forming in Maryland with operations elsewhere You pay Maryland's fees plus a typical home-state foreign LLC registration of about $200 per year. | $750 | $600 | $1,950 |
Indiana vs Maryland: full comparison
| Dimension | Indiana | Maryland |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 1 business day | 10 business days |
| Expedited option Paid fast-track filing | Not offered | $325 |
| Annual report Required in addition to tax | Required, $32 | Required, $300 |
| State-imposed annual tax Franchise, privilege, or LLC tax minimum | None | None |
| State income tax On pass-through LLC income at member level | Yes | Yes |
| Publication requirement Newspaper publication after formation | No | No |
| Operating agreement Required by state statute | Recommended, not required | Recommended, not required |
| Foreign LLC fee Cost to register as a foreign LLC in this state | $105 | $150 |
| State sales tax General statewide rate | 7.0% | 6.0% |
Taxes in Indiana and Maryland
How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.
Indiana tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 4.9%.
Maryland tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 8.3%.
Ongoing compliance
The recurring filings each state requires after formation.
Indiana
Annual report $32, due on your anniversary month. Registered agent required in Indiana.
Maryland
Annual report $300, due 04/15 each year. Registered agent required in Maryland.
Formation process, side by side
What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.
Indiana
- Check business-name availability on the Indiana entity search.
- Appoint a registered agent with a physical Indiana street address.
- File Indiana Articles of Organization (State Form 49459) for $95.
- Wait for approval. Online typically 1 business days. No paid expedite offered.
- Adopt an operating agreement (recommended, not required by Indiana statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $32 when it comes due.
Maryland
- Check business-name availability on the Maryland entity search.
- Appoint a registered agent with a physical Maryland street address.
- File Articles of Organization for a Limited Liability Company for $150.
- Wait for approval. Online typically 10 business days. Paid expedite from $325.
- Adopt an operating agreement (recommended, not required by Maryland statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $300 when it comes due.
Before you pick either state
A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.
Registered agent is non-negotiable. Both Indiana and Maryland (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.
Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Indiana or Maryland does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.
EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.
Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.
Agency contacts
Indiana Secretary of State, Business Services Division
- Website
- www.in.gov/sos
- Phone
- (317) 232-6576
- inbiz@sos.in.gov
- Indiana Secretary of State, Business Services Division, 302 W. Washington Street, Room E018, Indianapolis, IN 46204
- Office
- Indiana Statehouse, 200 W. Washington Street, Room 201, Indianapolis, IN 46204
- Hours
- 8:00 AM to 4:30 PM Eastern, Monday to Friday
Maryland State Department of Assessments and Taxation, Charter Division
- Website
- dat.maryland.gov
- Phone
- (410) 767-1184
- sdat.serviceofprocess@maryland.gov
- Charter Division, Maryland Department of Assessments and Taxation, 8th Floor, 301 W. Preston St., Baltimore, MD 21201-2395
- Office
- 301 W. Preston Street, Baltimore, MD 21201
- Hours
- 8:30 AM to 4:30 PM Eastern, Monday to Friday
Indiana Department of Revenue
- Website
- www.in.gov/dor
- Phone
- (317) 232-2240
- Indiana Department of Revenue, 100 N. Senate Avenue, Indianapolis, IN 46204
- Office
- 100 N. Senate Avenue, Indianapolis, IN 46204
- Hours
- 8:00 AM to 4:30 PM Eastern, Monday to Friday
Comptroller of Maryland
- Website
- www.marylandtaxes.gov
- Phone
- (410) 260-7980
- taxhelp@marylandtaxes.gov
- Comptroller of Maryland, Revenue Administration Division, 110 Carroll Street, Annapolis, MD 21411-0001
- Office
- Goldstein Treasury Building, 80 Calvert Street, Annapolis, MD 21401
- Hours
- 8:30 AM to 4:30 PM Eastern, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in Indiana or Maryland?
Indiana is cheaper at formation ($95) than Maryland ($150). Ongoing costs are also different: $116 vs $400 per year. Total over three years: $443 vs $1,350.
-
Can I form an LLC in Indiana if I live in Maryland?
Yes, but your Maryland business will almost certainly need to register as a foreign LLC in Maryland too, which means paying Maryland's foreign registration fee and any ongoing Maryland obligations on top of the Indiana ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
-
How long does it take to form an LLC in Indiana vs Maryland?
Indiana online: 1 business day; Maryland online: 10 business days. Indiana does not offer paid expedite. Maryland offers paid expedite from $325.
-
Which state has lower taxes for an LLC, Indiana or Maryland?
Indiana: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Maryland: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
-
Do both states require a registered agent?
Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Indiana and Maryland both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
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Which state should I pick if I run an online business from home?
Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Indiana or Maryland to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.
Full state guides
More Indiana and Maryland comparisons
More Indiana vs ...
Sources
- Filing fee: law.justia.com/codes/indiana/title-23/article-0-5/chapter-4/section-23… · verified April 21, 2026
Indiana LLC Articles of Organization filing fee is $95 when filed online through INBiz and $100 when filed by paper/mail. Form is State Form 49459. Online is the default and fastest path with approximately 1 business day processing. Indiana does not offer a separate expedited service tier; online filing through INBiz is the fast lane. - Expedited filing: inbiz.in.gov/business-filings · verified April 21, 2026
Indiana does not publish a formal expedited service tier for LLC Articles of Organization. Online INBiz filings are processed in approximately one business day at the standard $95 fee, so the practical expedite path is to file online rather than by mail. - Annual report fee: law.justia.com/codes/indiana/title-23/article-0-5/chapter-2/section-23… · verified April 21, 2026
Ind. Code 23-0.5-2-13 requires every domestic filing entity and registered foreign entity (including LLCs) to deliver a biennial report to the Secretary of State every two calendar years on a schedule set by the SOS. Filing fee is $32 online through INBiz and $50 by paper. No statutory late monetary penalty; failure to file leads to administrative dissolution. - Corporate income tax rate: www.in.gov/dor/business-tax/corporate-income-tax/ · verified April 21, 2026
Indiana corporate adjusted gross income tax is a flat 4.9% as of July 1, 2021 and remains at 4.9% for 2026. Applies to C-corporations and to LLCs electing C-corp treatment. - Sales tax rate: www.in.gov/dor/business-tax/sales-tax/ · verified April 21, 2026
Indiana statewide sales and use tax is 7% flat, with no local add-on. Food and prescription drugs are generally exempt. - Foreign LLC registration fee: forms.in.gov/Download.aspx?id=13562 · verified April 21, 2026
Indiana foreign LLC Application for Certificate of Authority: $105 online through INBiz, $125 by paper/mail. After registration, the foreign LLC owes the same $32 online biennial Business Entity Report. - Business name search: bsd.sos.in.gov/publicbusinesssearch · verified April 21, 2026
Indiana Secretary of State Business Search. Confirm LLC name availability before filing Articles of Organization. - Operating agreement requirement: law.justia.com/codes/indiana/title-23/article-18/chapter-4/section-23-… · verified April 21, 2026
Ind. Code 23-18-4-4 permits but does not require a written operating agreement. 23-18-1-16 defines operating agreement as any written or oral agreement of the members. Indiana does not mandate that LLCs adopt a written operating agreement. - Filing fee: dat.maryland.gov/businesses/Documents/FEES.pdf · verified April 21, 2026
SDAT Fee Schedule for Documents Relating to Corporate Charters (revised May 2024). Articles of Organization (domestic LLC) base fee is $100 with a $50 expedited service fee. All online filings through Maryland Business Express are automatically expedited, making the effective online day-one cost $150 (100 base plus 50 expedite). Mail filings may pay the $100 base with 4 to 6 week review, or add the $50 expedite fee for 7 to 10 business day review. - Expedited filing: egov.maryland.gov/BusinessExpress/home/ProcessingTimes · verified April 21, 2026
Rush service via online Maryland Business Express: $325 same-day fee when submitted before 2:30 PM (reviewed within approximately 3 hours). Rush service via paper dropbox at 123 Market Place, Baltimore: $425 same-day fee (submit by 10 AM, pickup by 3:45 PM). Fee amounts per SDAT fee schedule revised May 2024. We report the online rush at $325 and approximately 3 hour turnaround as the default expedited tier. - Annual report fee: dat.maryland.gov/SDAT%20Forms/PPR_Forms/2025_Form1.pdf · verified April 21, 2026
Form 1 Annual Report and Business Personal Property Return, Maryland SDAT. Filing fee for a Domestic or Foreign Limited Liability Company is $300 per entity, due April 15 each year. The same Form 1 captures both the Annual Report (Sections I through III all LLCs must complete) and the Business Personal Property Return (Sections IV through VIII, required only if the LLC owns, leases, or uses personal property in Maryland with total original cost of $20,000 or more). - Corporate income tax rate: www.marylandtaxes.gov/business/income/tax-information.php · verified April 21, 2026
Maryland corporate income tax is a flat 8.25% of Maryland modified income. Applies to C-corporations and to LLCs electing C-corp treatment. LLCs default to pass-through taxation. - Sales tax rate: www.marylandcomptroller.gov/taxes/business/sales-and-use/ · verified April 21, 2026
Maryland statewide sales and use tax is 6% with no local add-on (special 9% rate applies to alcoholic beverages). Short-term vehicle rentals and a handful of services have different rates. - Foreign LLC registration fee: dat.maryland.gov/businesses/Documents/FEES.pdf · verified April 21, 2026
SDAT Fee Schedule: Foreign LLC Registration base fee $100 plus $50 expedited. Online filings through Maryland Business Express are automatically expedited at $150 total. Same foreign LLC must also file Form 1 Annual Report and pay the $300 annual fee. - Business name search: egov.maryland.gov/BusinessExpress/EntitySearch · verified April 21, 2026
Maryland Business Express Entity Search. Confirm LLC name availability before filing Articles of Organization. - Operating agreement requirement: mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gca§ion=4A… · verified April 21, 2026
Md. Code Corp. and Assns. 4A-402 permits (but does not require) members to enter into an operating agreement. Unless the articles of organization specifically require otherwise, the operating agreement need not be in writing. Maryland does not mandate a written LLC operating agreement.