How to form a LLC in maryland
Summary: Filing a LLC in Maryland costs $100. Annual reports run $300 and they're due April 15. There's no franchise tax. The state income tax is 5.75%. Here's the thing that catches most founders off guard: the county level personal property tax. Most states don't have that.
Contents
Maryland is the state everyone forgets about. It's right between DC and Baltimore. Strong economy, reasonable LLC fees. But there's a weird personal property tax that catches most founders off guard.
Here's what you should know before you file.
Quick numbers
- Filing fee: $100
- Annual report: $300, due April 15
- Income tax: 5.75% flat
- Franchise tax: None
- Processing: 5-7 business days
- Registered agent: You need one with a physical address
- Publication requirement: None
- Personal property tax: You have to pay this at the county level
What makes maryland different
The personal property tax surprise
Most states don't do this. But in Maryland, counties make LLCs file a personal property tax return. It's one more step. One more deadline. And it trips up new founders every time. The tax covers business equipment, furniture, computers, and other physical assets. How much you pay depends on your county. Figure somewhere between $50 and $200 a year. Some counties want the return even if you own no personal property at all.
This is one of those hidden costs of LLC formation that services don't always mention. So work it into your budget.
April 15 deadline
Maryland's annual report is due April 15. Same day as federal taxes. Easy to remember, but rough when everything hits at once. If you're already scrambling to file your personal taxes, the annual report is one more thing on your plate. Annual reports explained covers what you need to file and when.
Three-state access
Maryland puts you close to Washington DC, Baltimore, and Northern Virginia. No other state gives you that. You can live in Maryland, work in DC, and have clients in Virginia. That's why government contractors and consultants pick Maryland a lot. Virginia LLC formation works about the same way, but Virginia's annual fees are lower ($50 vs Maryland's $300).
No publication requirement
Unlike New York or Michigan, Maryland doesn't make you publish your LLC formation in a newspaper. That's one less thing to worry about. It saves you time and money.
Maryland filing fees breakdown
| Fee Type | Cost | Notes |
|---|---|---|
| Articles of Organization (online) | $100 | Standard rate |
| Articles of Organization (paper) | $100 | Same price, slower processing |
| Annual Report (online) | $300 | Due April 15 |
| Annual Report (paper) | $300 | Same price |
| Personal Property Tax (county) | $50-$200 | Varies by county |
Total first-year cost
About $100 to file, plus $300 for the annual report if it's due in that first year, plus $50 to $200 for personal property tax. So you're looking at $450 to $600. That's middle of the road for Maryland. Massachusetts will run you $1,000 or more. Michigan is just $135. Virginia, about $150.
Every cost of starting a LLC in Maryland is fair. But the personal property tax? That's a layer of hassle you won't find in most other states.
Maryland formation process
Step 1, choose a name
You need to include "Limited Liability Company," "LLC," or "L.L.C." in your LLC name. Check if it's available on the Maryland Business Express portal. How to choose a LLC name without trademark issues walks you through the basics of staying out of legal trouble.
Step 2, select a registered agent
You need someone who has a real Maryland address. That can be you if you live there. If not, hire a service. Registered agent vs business owner breaks down the difference. And if you go with a formation service, they usually throw in registered agent service for the first year.
Step 3, file articles of organization
Submit online through Maryland Business Express. $100 fee. Wait 5-7 business days. Can you start a LLC yourself in Maryland? Yes. The process is simple.
Step 4, get your EIN
You need an EIN to file taxes, open a bank account, and hire people. It's free from the IRS. What is an EIN and why you need it has the full rundown.
Step 5, file annual report
Due every April 15. There's a $300 fee. Don't miss it. Annual reports explained tells you what to file and when.
Step 6, personal property tax return
Check with your county. This is separate from the state annual report. Some counties require it even if you have no personal property. It's not federal, it's not state, it's county. Easy to miss.
Maryland vs other states
Maryland vs virginia
Virginia: $100 filing, $50 annual. Maryland: $100 filing, $300 annual. Virginia wins on cost. But Maryland has better access to Baltimore and DC. If you're a consultant or government contractor who needs to be in both cities, Maryland makes more sense. If you're just looking for the cheapest option, choose Virginia.
Maryland vs delaware
Delaware is the corporate capital. But it costs more and adds hassle for small businesses. Maryland works better for local businesses that don't plan to raise venture capital. Delaware vs Wyoming LLC covers the debate, but Maryland is a simpler option.
Maryland vs DC
DC is pricey and a pain. Maryland is cheaper and simpler for founders who want to be near DC without all the District drama. If you're a sole proprietor or you run a small business, Maryland just makes sense. Should you form a LLC in your home state or in Delaware? That's a pretty similar call.
Maryland vs pennsylvania
Pennsylvania is another neighbor. Filing fees are higher there ($125). Annual reports are cheaper ($70). Maryland gives you better access to DC. It depends on where your clients are.
Best LLC services for maryland
Inc authority
Free formation plus state fees. First year registered agent is free. Good budget option. Inc Authority review covers the details. They handle Maryland filings right and don't charge extra for the personal property tax filing (though you still have to file it yourself).
Northwest registered agent
$39 plus state fees. The best privacy protection. Great for founders who want to keep their address private. LegalZoom vs Northwest Registered Agent breaks down the privacy features. Northwest is known for fighting for your privacy.
Zenbusiness
No setup costs beyond what the state charges. The dashboard is simple. Good if you're just starting out. They keep an eye on annual report due dates. That helps with Maryland's April 15 cutoff. ZenBusiness review breaks down what they offer.
Bizee (formerly incfile)
No formation fees, but you still pay state fees. Pricing is upfront. Support is solid. Bizee review breaks down what they charge and what you get. They throw in registered agent service free for the first year, so you save some cash.
If you're weighing your options, comparing Inc Authority and ZenBusiness is a solid place to begin. Both give you free formation. Comparing ZenBusiness and Bizee can help you pick between two popular free formation services.
One thing to keep in mind: most services don't deal with Maryland's personal property tax. You'll have to file that on your own with your county. Which LLC upsells are actually useful goes over what add ons are worth paying for.
Also, some services charge more for Maryland filings because they're complicated. Check the fine print. Why is LegalZoom so expensive covers hidden fees that add up.
Last thing: if you're starting a LLC with more than one member, how to split ownership percentages matters before you file. Maryland follows standard LLC law. Still, getting clear on this now saves you grief down the road.
Frequently asked questions
No. Maryland doesn't make you publish your LLC formation in a newspaper. That saves you time and money compared to states like New York or Michigan.
No. Maryland doesn't have a franchise tax. That saves you money compared to states like Texas, California, and New York.
Maryland counties require LLCs to file a personal property tax return. This covers business equipment, furniture, computers, and other physical assets. The amount varies by county. Usually it runs from $50 to $200 a year. Some counties want the return even if you have no personal property.
Online filings take 5-7 business days. Paper filings? They take longer, usually 10-15 business days. You can get expedited processing if you pay an extra fee.
Yes, if you have a physical street address in Maryland. But that makes your address public record. Using a professional registered agent keeps your home address private.