Maryland vs New Jersey LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026Maryland charges $150 to form an LLC; New Jersey charges $125. 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, New Jersey runs about $700 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, New Jersey 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
- New Jersey costs $25 less to form ($125 vs $150).
- New Jersey is $225 per year cheaper to maintain ($175 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.
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 Maryland, business operates there No foreign LLC registration needed. You pay Maryland fees only. | $550 | $400 | $1,350 |
| You live in New Jersey, business operates there No foreign LLC registration needed. You pay New Jersey fees only. | $300 | $175 | $650 |
| 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 |
| Non-resident forming in New Jersey with operations elsewhere You pay New Jersey's fees plus a typical home-state foreign LLC registration of about $200 per year. | $500 | $375 | $1,250 |
Maryland vs New Jersey: full comparison
| Dimension | Maryland | New Jersey |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 10 business days | 3 business days |
| Expedited option Paid fast-track filing | $325 | $25 |
| Annual report Required in addition to tax | Required, $300 | Required, $75 |
| 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 | $150 | $125 |
| State sales tax General statewide rate | 6.0% | 6.6% |
Taxes in Maryland and New Jersey
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.
Maryland tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 8.3%.
New Jersey tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 9.0%.
Ongoing compliance
The recurring filings each state requires after formation.
Maryland
Annual report $300, due 04/15 each year. Registered agent required in Maryland.
New Jersey
Annual report $75, due on your anniversary month. Registered agent required in New Jersey.
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.
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.
New Jersey
- Check business-name availability on the New Jersey entity search.
- Appoint a registered agent with a physical New Jersey street address.
- File Public Records Filing for New Business Entity (Certificate of Formation) for $125.
- Wait for approval. Online typically 3 business days. Paid expedite from $25.
- Adopt an operating agreement (recommended, not required by New Jersey 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 $75 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 Maryland and New Jersey (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 Maryland or New Jersey 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
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
New Jersey Division of Revenue and Enterprise Services
- Website
- www.nj.gov/treasury/revenue
- Phone
- (609) 292-9292
- NJ Division of Revenue, P.O. Box 252, Trenton, NJ 08646-0252
- Office
- 33 West State Street, 5th Floor, Trenton, NJ 08608
- Hours
- 8:30 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
New Jersey Division of Taxation
- Website
- www.nj.gov/treasury/taxation
- Phone
- (609) 292-6400
- NJ Division of Taxation, P.O. Box 248, Trenton, NJ 08646-0248
- Office
- 3 John Fitch Way, Trenton, NJ 08611
- Hours
- 8:30 AM to 4:30 PM Eastern, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in Maryland or New Jersey?
New Jersey is cheaper at formation ($125) than Maryland ($150). Ongoing costs are also different: $175 vs $400 per year. Total over three years: $650 vs $1,350.
-
Can I form an LLC in Maryland if I live in New Jersey?
Yes, but your New Jersey business will almost certainly need to register as a foreign LLC in New Jersey too, which means paying New Jersey's foreign registration fee and any ongoing New Jersey obligations on top of the Maryland 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 Maryland vs New Jersey?
Maryland online: 10 business days; New Jersey online: 3 business days. Maryland offers paid expedite from $325. New Jersey offers paid expedite from $25.
-
Which state has lower taxes for an LLC, Maryland or New Jersey?
Maryland: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. New Jersey: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
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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. Maryland and New Jersey 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 Maryland or New Jersey 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 Maryland and New Jersey comparisons
More Maryland vs ...
Sources
- 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. - Filing fee: www.nj.gov/treasury/revenue/fees.shtml · verified April 21, 2026
NJ Division of Revenue and Enterprise Services fee schedule: Certificate of Formation (domestic LLC) = $125. Same fee applies whether filing online, by mail, in person, or by fax. - Expedited filing: www.nj.gov/treasury/revenue/fees.shtml · verified April 21, 2026
NJ DORES expedited (over-the-counter) fee schedule: $25 per filing for standard expedited/OTC, $50 same-day fax, $500 2-hour service, $1,000 1-hour service. Report $25 OTC as the cheapest expedited tier. Online standard filings typically process within 1–3 business days without a separate expedite charge. - Certificate of Formation form: www.njportal.com/dor/businessformation/home/welcome · verified April 21, 2026
New Jersey does not publish a single fillable Certificate of Formation PDF specifically for LLCs. Formation is accomplished via the online 'Business Formation' portal (Public Records Filing for New Business Entity). Form L-102 is used only for amendments. Paper filers draft their own certificate per N.J.S.A. 42:2C-18. - Business name search: www.njportal.com/DOR/BusinessNameSearch/Search/BusinessName · verified April 21, 2026
New Jersey Business Name Search, operated by the Division of Revenue and Enterprise Services. Used to check name availability before filing a Certificate of Formation. - Operating agreement requirement: law.justia.com/codes/new-jersey/title-42/section-42-2c-11/ · verified April 21, 2026
N.J.S.A. 42:2C-11 defines and governs the operating agreement under the New Jersey Revised Uniform Limited Liability Company Act (RULLCA). Agreements may be written, oral, or implied; the statute does not require an LLC to adopt one. Default RULLCA provisions fill gaps. Justia is used as a neutral statute mirror because the legislature's official site (pub.njleg.gov) is often WAF-blocked. - Publication requirement: www.nj.gov/treasury/revenue/gettingregistered.shtml · verified April 21, 2026
New Jersey does not require LLCs to publish a notice of formation. Neither N.J.S.A. 42:2C-18 nor the DORES 'Getting Registered' guide imposes any newspaper-publication obligation. - Foreign LLC registration fee: www.nj.gov/treasury/revenue/fees.shtml · verified April 21, 2026
NJ DORES fee schedule: Certificate of Registration (foreign LLC) = $125. - Annual report fee: www.nj.gov/treasury/revenue/busrecords.shtml · verified April 21, 2026
NJ Annual Report filing fee for domestic and foreign LLCs = $75. Due on the last day of the LLC's anniversary month each year via the online Annual Report portal at njportal.com/DOR/annualreports. - Franchise tax: www.nj.gov/treasury/taxation/prntpart.shtml · verified April 21, 2026
NJ Division of Taxation Partnership Returns page and TB-55. LLCs taxed as partnerships pay a $150 per-owner Partnership Filing Fee (cap $250,000) with Form NJ-1065 under N.J.S.A. 54A:8-6. This is a filing fee, not a franchise tax, and it does not apply if the LLC elects C-corp treatment (which instead triggers the Corporation Business Tax). We record franchiseTax.applies = false because the state does not label or structure this as a franchise tax and it is capped at a per-owner count, not an entity minimum. - Corporate income tax rate: www.nj.gov/treasury/taxation/corp_over.shtml · verified April 21, 2026
NJ Division of Taxation Corporation Business Tax: tiered rates 6.5% (ENI ≤ $50k), 7.5% (ENI $50k–$100k), 9.0% (ENI > $100k). A 2.5% Corporate Transit Fee (CTF) applies on top of the 9% rate for taxpayers with allocated taxable net income above $10M, enacted 2024 and codified at N.J.S.A. 54:10A-5.41. We record the statutory 9% rate in the field; combined effective top rate of 11.5% is noted in taxes.notes. - Sales tax rate: www.nj.gov/treasury/taxation/businesses/salestax/index.shtml · verified April 21, 2026
NJ Division of Taxation Sales and Use Tax: statewide rate 6.625% since 2018 (N.J.S.A. 54:32B-3). No general local sales tax; Urban Enterprise Zones tax at half rate (3.3125%) on qualifying in-person sales, and Atlantic City imposes additional luxury/tourism taxes on specific purchases.