How much does it cost to form an LLC in Maryland in 2026?

Online filings through Maryland Business Express cost $150, which is the $100 base fee plus the $50 auto-expedite that applies to every online submission. Mail filers can pay the $100 base without expedite and wait around 42 business days. Plan for $300 per year for Form 1 starting the April after formation, plus $50 to $125 a year for a commercial resident agent.

Does Maryland have an annual report for LLCs?

Yes. Every Maryland LLC, domestic or foreign, has to file Form 1 with SDAT by April 15 each year. Form 1 combines the Annual Report and the Business Personal Property Return. The filing fee is a flat $300 regardless of whether the LLC owns personal property in Maryland.

Do Maryland LLCs pay a franchise tax?

No. Maryland does not impose a general corporate franchise tax on LLCs. The $300 Form 1 filing fee is a charter maintenance charge collected by SDAT, not a franchise tax. An LLC electing C-corp treatment owes the 8.3% Maryland corporate income tax, but that applies only on the C-corp election and is calculated on income, not as a flat minimum.

What is Maryland's Form 1 and do I really have to file it every year?

Form 1 is SDAT's combined Annual Report and Business Personal Property Return, and yes, every Maryland LLC files it every year whether it owns personal property or not. All LLCs complete Sections I through III (the Annual Report side) and pay the flat $300 fee. LLCs with $20,000 or more in business personal property in Maryland also complete Sections IV through VIII, which triggers a local personal property tax billed by the county or municipality.

How long does it take to form a Maryland LLC?

Online filings through Maryland Business Express clear in about 10 business days on the standard queue. Paper filings run around 42 business days. Rush service is available at $325 for 3 hours turnaround when submitted online before 2:30 PM, or $425 same-day at the Baltimore dropbox if you get there before 10 AM.

Do Maryland LLCs pay state income tax?

The LLC itself does not pay Maryland corporate income tax by default; members report their share of pass-through income on Maryland individual returns at graduated rates from 2% to 5.75%, plus county income tax between 2.25% and 3.20%. Maryland offers an elective Pass-Through Entity tax at 8% for individual members and 8.25% for entity members for federal SALT-cap purposes. An LLC electing C-corp treatment owes Maryland's flat 8.3% corporate income tax.

Should I form my LLC in Maryland instead of my home state?

Only if you live or operate in Maryland. At $150 to form and $300 every year for Form 1, Maryland sits on the expensive side of the ongoing-cost range, and a non-resident picking Maryland still has to foreign-qualify back home. For an out-of-state online business, Wyoming or your home state almost always wins on total cost.

Does Maryland require an operating agreement?

No. Md. Code Corp. and Assns. 4A-402 permits but does not require a Maryland LLC to adopt an operating agreement, and unless the Articles specifically say otherwise the agreement does not have to be in writing. A written agreement is still strongly advised for any multi-member LLC because Maryland's default statutory rules on management and distributions rarely match what the members actually want.

Maryland LLC: fees, filing steps, and 2026 costs

$150 Filing fee Online filing available

$550 Year 1 estimate Filing + first year tax + RA

10 days (expedited 3h) Approval Mail ~42d

$300 annual report Ongoing Due 04/15 annually

Where Maryland fits, and where it doesn't

Good fit for Maryland

You live in Maryland and your business operates here; you run a professional services practice with Maryland clients and need a Maryland LLC for licensing or bar rules; you hold Maryland real estate in an LLC and want the entity to match the property's jurisdiction; you run a DC-area consulting firm with Maryland residency and do not want to deal with the DC Unincorporated Business Franchise Tax; you are fine trading a higher annual fee for a compliance calendar with exactly one recurring deadline.

Skip Maryland when

You live in Virginia, Pennsylvania, or Delaware and assume Maryland is the cheaper option; it is not, and Maryland's $300 annual fee is on the expensive end of the national range. You run a small side business with minimal revenue where $300 a year is a meaningful slice of the margin. You are a non-resident online business with no Maryland customers, no Maryland property, and no Maryland address, in which case Wyoming or your home state will cost a fraction of the Maryland annual.

What a Maryland LLC actually costs

Formation filing fee Paid once at formation $150
Commercial registered agent Annual, estimate $100
Annual report fee Annual, due 04/15 $300
Year 1 total estimate Formation plus first-year ongoing $550

Registered agent estimate uses a $100 midpoint. Specialist agents start around $50 per year. Full-service formation companies bundle RA for $125 to $200.

Cost across the first three years

Year 1 $550

Year 2 $400

Year 3 $400

How Maryland compares on the basics

Online filing File through state portal

Yes

Expedited processing $325 for 3h

Yes

Annual report required Separate report on top of tax

Yes

State-imposed annual tax None beyond income tax

Written operating agreement required Recommended, not statutorily required

Recommended

Newspaper publication requirement Not required in this state

State sales tax 6% state rate

How to apply for an LLC in Maryland

Pick a compliant LLC name
The name must end in "Limited Liability Company," "LLC," or an approved abbreviation, and must be distinguishable from every other entity on the Maryland Secretary of State record. Check availability at the Maryland entity search.
Designate a registered agent
Every Maryland LLC is required to have a registered agent with a physical street address in Maryland. You can serve as your own agent if you live in Maryland, or hire a commercial service for $99 to $249/yr. See the Maryland registered agent guide.
File Articles of Organization for a Limited Liability Company
Filing fee is $150. Online filing is available through the state portal. Mail filings are accepted. Paid expedite is available for $325.
Apply for a federal EIN
Free directly from the IRS in about 15 minutes (see the EIN guide). Required for opening a business bank account, hiring employees, and most formation-service tax workflows.
Adopt an operating agreement
Maryland does not require an operating agreement by statute, but adopting one is strongly recommended to preserve the liability shield. See the operating agreement pillar for the 12 clauses every agreement should include.

Filing walkthrough

You file Articles of Organization (SDAT form) through Maryland Business Express at egov.maryland.gov/BusinessExpress. The base state fee is $100, but every online filing is automatically expedited for an extra $50, which is why the effective day-one cost is $150. Online filings typically clear in 10 business days on the standard queue. Paper filers can pay the $100 base without the expedite and wait around 42 business days, which is rarely worth the $50 savings.

Maryland requires a resident agent with a Maryland street address, their equivalent of a registered agent, and the person or company has to be physically reachable during business hours. You can serve as your own agent if you have a Maryland address, or pay a commercial resident agent for the usual $50 to $125 a year. If you need a faster turnaround than the standard online queue, SDAT offers rush service at $325 for 3 hours when you submit before 2:30 PM, or $425 if you walk it into the Baltimore office before 10 AM for same-day pickup. The Articles themselves are short and fit on one page: name, purpose, resident agent details, and management structure.

Check name availability File online Maryland formation guidance

How Maryland taxes an LLC

Maryland has no franchise tax on LLCs. That is the first thing to get straight, because the $300 Form 1 fee often gets described as one and it is not. Form 1 is SDAT's charter maintenance fee, and it is separate from any tax the Comptroller collects on income.

LLC income flows through to members by default. Single-member LLCs are disregarded for federal and Maryland purposes; multi-member LLCs file Form 510 as partnerships. Members report their share on Maryland individual returns at graduated state rates from 2% to 5.75%, plus county income tax that ranges from 2.25% in Worcester County up to 3.20% in Montgomery, Prince George's, and a few others. That county layer is worth checking before you assume Maryland is a low-tax state for members. Maryland also offers an elective Pass-Through Entity tax at 8% for individual members and 8.25% for entity members, which can be useful for federal SALT-cap workarounds.

An LLC electing C-corp treatment owes Maryland's flat 8.3% corporate income tax on Maryland modified income. Statewide sales and use tax is 6.0% with no local add-on, though alcoholic beverages run at 9% and a handful of services carry their own rates.

Ongoing compliance and costs after year one

Budget $300 per year for Form 1, due April 15 every year, plus $50 to $125 a year for a commercial resident agent if you use one. That is effectively the entire recurring state bill for a Maryland LLC that does not own significant personal property. If your LLC owns, leases, or uses business personal property in Maryland with a total original cost of $20,000 or more, you also fill out the personal property portion of Form 1 (Sections IV through VIII), and the counties and municipalities where the property sits assess their own personal property tax on top. Inventory counts, which is the part that surprises retail and restaurant operators.

Late Form 1 filings draw a $100 penalty plus a percentage-based penalty on any assessed personal property, and letting the filing lapse eventually leads to SDAT forfeiting the LLC's good standing. If you also do business in another state and have to register as a foreign LLC there, the Maryland side stays the same $300 annual, plus whatever that other state charges. Maryland is not a state to pick for out-of-state reasons.

Common mistakes forming a Maryland LLC

Two patterns come up a lot. First, filers see Form 1 labelled 'Annual Report and Business Personal Property Return' and panic, assuming they owe a second tax just because their LLC has a laptop and a chair. The personal property portion only triggers if you own, lease, or use personal property in Maryland with total original cost of $20,000 or more. Below that threshold you skip Sections IV through VIII and the flat $300 fee is the whole bill. Second, online filers occasionally go looking for a cheaper base-rate filing by mail to save $50, then discover Maryland's mail queue runs around 42 business days. The $50 you save is almost never worth the six-week wait when an online filing clears in 10 business days.

State agencies that handle Maryland LLCs

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

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

Frequently Asked Questions

How much does it cost to form an LLC in Maryland in 2026?

Online filings through Maryland Business Express cost $150, which is the $100 base fee plus the $50 auto-expedite that applies to every online submission. Mail filers can pay the $100 base without expedite and wait around 42 business days. Plan for $300 per year for Form 1 starting the April after formation, plus $50 to $125 a year for a commercial resident agent.
Does Maryland have an annual report for LLCs?

Yes. Every Maryland LLC, domestic or foreign, has to file Form 1 with SDAT by April 15 each year. Form 1 combines the Annual Report and the Business Personal Property Return. The filing fee is a flat $300 regardless of whether the LLC owns personal property in Maryland.
Do Maryland LLCs pay a franchise tax?

No. Maryland does not impose a general corporate franchise tax on LLCs. The $300 Form 1 filing fee is a charter maintenance charge collected by SDAT, not a franchise tax. An LLC electing C-corp treatment owes the 8.3% Maryland corporate income tax, but that applies only on the C-corp election and is calculated on income, not as a flat minimum.
What is Maryland's Form 1 and do I really have to file it every year?

Form 1 is SDAT's combined Annual Report and Business Personal Property Return, and yes, every Maryland LLC files it every year whether it owns personal property or not. All LLCs complete Sections I through III (the Annual Report side) and pay the flat $300 fee. LLCs with $20,000 or more in business personal property in Maryland also complete Sections IV through VIII, which triggers a local personal property tax billed by the county or municipality.
How long does it take to form a Maryland LLC?

Online filings through Maryland Business Express clear in about 10 business days on the standard queue. Paper filings run around 42 business days. Rush service is available at $325 for 3 hours turnaround when submitted online before 2:30 PM, or $425 same-day at the Baltimore dropbox if you get there before 10 AM.
Do Maryland LLCs pay state income tax?

The LLC itself does not pay Maryland corporate income tax by default; members report their share of pass-through income on Maryland individual returns at graduated rates from 2% to 5.75%, plus county income tax between 2.25% and 3.20%. Maryland offers an elective Pass-Through Entity tax at 8% for individual members and 8.25% for entity members for federal SALT-cap purposes. An LLC electing C-corp treatment owes Maryland's flat 8.3% corporate income tax.
Should I form my LLC in Maryland instead of my home state?

Only if you live or operate in Maryland. At $150 to form and $300 every year for Form 1, Maryland sits on the expensive side of the ongoing-cost range, and a non-resident picking Maryland still has to foreign-qualify back home. For an out-of-state online business, Wyoming or your home state almost always wins on total cost.
Does Maryland require an operating agreement?

No. Md. Code Corp. and Assns. 4A-402 permits but does not require a Maryland LLC to adopt an operating agreement, and unless the Articles specifically say otherwise the agreement does not have to be in writing. A written agreement is still strongly advised for any multi-member LLC because Maryland's default statutory rules on management and distributions rarely match what the members actually want.
How do I apply for an LLC in Maryland?

Apply for an LLC in Maryland by filing Articles of Organization for a Limited Liability Company with Maryland State Department of Assessments and Taxation, Charter Division. The filing fee is $150. Online filing is available through the state portal. Approval typically takes 10 business days online. Mail filings take about 42 business days. Before filing, pick a registered agent (see the Maryland registered agent guide) and confirm your business name is available using the state's entity search.

Compare Maryland to another state

Side-by-side breakdowns of fees, taxes, approval time, and compliance. Every other US jurisdiction has a dedicated compare page against Maryland.

A

C

D

I

K

L

Maryland vs Louisiana

M

N

O

P

Maryland vs Pennsylvania

R

Maryland vs Rhode Island

S

T

U

Maryland vs Utah

V

W

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.

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.