Is it cheaper to form an LLC in Maryland or North Dakota?

North Dakota is cheaper at formation ($135) than Maryland ($150). Ongoing costs are also different: $150 vs $400 per year. Total over three years: $585 vs $1,350.

Can I form an LLC in Maryland if I live in North Dakota?

Yes, but your North Dakota business will almost certainly need to register as a foreign LLC in North Dakota too, which means paying North Dakota's foreign registration fee and any ongoing North Dakota 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 North Dakota?

Maryland online: 10 business days; North Dakota online: 5 business days. Maryland offers paid expedite from $325. North Dakota does not offer paid expedite.

Which state has lower taxes for an LLC, Maryland or North Dakota?

Maryland: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. North Dakota: 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. Maryland and North Dakota 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.

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 North Dakota 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.

Maryland vs North Dakota LLC comparison

Maryland charges $150 to form an LLC; North Dakota charges $135. 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, North Dakota runs about $765 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, North Dakota 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.

Formation filing fee

Maryland $150

North Dakota $135

North Dakota saves $15

Year 1 total estimate

Maryland $550

North Dakota $285

North Dakota saves $265

Ongoing per year

Maryland $400

North Dakota $150

North Dakota saves $250

3-year total

Maryland $1,350

North Dakota $585

North Dakota saves $765

Key differences at a glance

North Dakota costs $15 less to form ($135 vs $150).
North Dakota is $250 per year cheaper to maintain ($150 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.

Maryland North Dakota

Year 1

$550

$285

Year 2

$950

$435

Year 3

$1,350

$585

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 North Dakota, business operates there No foreign LLC registration needed. You pay North Dakota fees only.	$285	$150	$585
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 North Dakota with operations elsewhere You pay North Dakota's fees plus a typical home-state foreign LLC registration of about $200 per year.	$485	$350	$1,185

Maryland vs North Dakota: full comparison

Dimension	Maryland	North Dakota
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	10 business days	5 business days
Expedited option Paid fast-track filing	$325	Not offered
Annual report Required in addition to tax	Required, $300	Required, $50
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	$135
State sales tax General statewide rate	6.0%	5.0%

Taxes in Maryland and North Dakota

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%.

North Dakota tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 4.3%.

Ongoing compliance

The recurring filings each state requires after formation.

Maryland

Annual report $300, due 04/15 each year. Registered agent required in Maryland.

North Dakota

Annual report $50, due 11/15 each year. Registered agent required in North Dakota.

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.

North Dakota

Check business-name availability on the North Dakota entity search.
Appoint a registered agent with a physical North Dakota street address.
File Articles of Organization (Limited Liability Company) for $135.
Wait for approval. Online typically 5 business days. No paid expedite offered.
Adopt an operating agreement (recommended, not required by North Dakota 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 $50 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 North Dakota (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 North Dakota 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
Email: sdat.serviceofprocess@maryland.gov
Mail: 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

North Dakota Secretary of State - Business Services

Website: sos.nd.gov
Phone: (701) 328-2900
Email: sosbir@nd.gov
Mail: 600 E Boulevard Avenue, Dept 108, Bismarck, ND 58505-0500
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

Comptroller of Maryland

Website: www.marylandtaxes.gov
Phone: (410) 260-7980
Email: taxhelp@marylandtaxes.gov
Mail: 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

North Dakota Office of State Tax Commissioner

Website: www.tax.nd.gov
Phone: (701) 328-7088
Mail: 600 E. Boulevard Ave., Dept. 127, Bismarck, ND 58505-0599
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Maryland or North Dakota?

North Dakota is cheaper at formation ($135) than Maryland ($150). Ongoing costs are also different: $150 vs $400 per year. Total over three years: $585 vs $1,350.
Can I form an LLC in Maryland if I live in North Dakota?

Yes, but your North Dakota business will almost certainly need to register as a foreign LLC in North Dakota too, which means paying North Dakota's foreign registration fee and any ongoing North Dakota 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 North Dakota?

Maryland online: 10 business days; North Dakota online: 5 business days. Maryland offers paid expedite from $325. North Dakota does not offer paid expedite.
Which state has lower taxes for an LLC, Maryland or North Dakota?

Maryland: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. North Dakota: 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. Maryland and North Dakota 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.
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 North Dakota 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

MarylandOpen Maryland LLC guide →
North DakotaOpen North Dakota LLC guide →

More Maryland and North Dakota comparisons

More Maryland vs ...

More North Dakota 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&section=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.sos.nd.gov/business/business-services/business-structures/limited-… · verified April 21, 2026
North Dakota SoS LLC page lists Registration (Articles of Organization) filing fee as $135 for both domestic and foreign LLCs. Same fee whether filed online via FirstStop or by mail.
Expedited filing: firststop.sos.nd.gov/ · verified April 21, 2026
North Dakota does not offer a state-level expedited processing tier. All filings go through the FirstStop online portal, which the SoS reports processes LLC formations in approximately 5 business days.
Foreign LLC registration fee: www.sos.nd.gov/business/business-services/business-structures/limited-… · verified April 21, 2026
Foreign LLC registration fee matches the domestic Articles of Organization fee at $135, per the ND SoS LLC fee listing.
Operating agreement requirement: www.ndlegis.gov/cencode/t10c32-1.pdf · verified April 21, 2026
N.D.C.C. 10-32.1-02(36) defines 'operating agreement' to include agreements that are oral, in a record, implied, or any combination thereof. The North Dakota Uniform LLC Act does not require a written operating agreement.
Publication requirement: www.ndlegis.gov/cencode/t10c32-1.pdf · verified April 21, 2026
Chapter 10-32.1 (Uniform Limited Liability Company Act) contains no newspaper publication requirement for LLC formation. Only NY, AZ, and NE require publication.
Annual report fee: www.sos.nd.gov/business/business-services/business-structures/limited-… · verified April 21, 2026
ND SoS LLC page lists the annual report fee as $50 for Business LLC, PLLC, and foreign LLC. Business LLCs and PLLCs are due November 15 each year; Farming/Ranching and Authorized Livestock Farm LLCs due April 15.
Corporate income tax rate: www.tax.nd.gov/business/corporate-income-tax · verified April 21, 2026
ND Office of State Tax Commissioner corporate income tax page: top bracket is taxable income over $50,000, taxed at $1,240 plus 4.31% of the amount over $50,000. Graduated rates 1.41% to 4.31%. Applies to C-corps; LLCs taxed as C-corps would use these rates.
Sales tax rate: www.tax.nd.gov/business/sales-and-use-tax · verified April 21, 2026
ND Office of State Tax Commissioner: statewide general sales and use tax rate is 5%. Cities and counties levy additional local option taxes on top of the state rate.
Business name search: firststop.sos.nd.gov/search/business · verified April 21, 2026
FirstStop business entity search, used to confirm name availability before filing Articles of Organization.
Online filing portal: firststop.sos.nd.gov/ · verified April 21, 2026
FirstStop is the North Dakota SoS online business filing portal. The SoS directs all LLC filings through FirstStop; online filings are typically approved within 5 business days.

Legal Disclaimer: FreeNetLaw provides general legal information, not legal advice. The information on this site is not a substitute for consultation with a licensed attorney. Laws vary by jurisdiction and change frequently. Always verify information with official sources and consult a qualified attorney for advice about your specific situation.