Maryland LLCs cost $100 to form and $300/year for annual reports - among highest annual fees in US. Annual report due by April 15 every year (all LLCs same deadline). Maryland Department of Assessments & Taxation (SDAT) processes online filings in 7-10 business days. High annual fee but strong legal framework and proximity to DC market.
Maryland LLC Formation
Maryland Department of Assessments & Taxation (SDAT) processes LLC formations. $100 filing fee.
Standard processing: 7-10 business days. Expedited processing: +$50 (1-2 business days). Same-day: +$350 (rare, specialty processing).
Name Requirements
Must include "Limited Liability Company", "L.L.C.", or "LLC". Maryland also accepts "LC" (unusual).
Restricted words: Bank, Trust, Insurance, University. Maryland SDAT rejects 21% of names for similarity to existing entities (strictest in Mid-Atlantic).
Name Availability Search
Search Maryland Business Express at egov.maryland.gov/businessexpress. Free search.
Name reservation: $25, holds 30 days only (shortest in US). Can extend with new $25 fee. Better to file LLC quickly rather than reserve.
Formation Process
File Articles of Organization with Maryland SDAT. Online filing at egov.maryland.gov/businessexpress or mail to Baltimore.
Required: LLC name, resident agent with MD address, principal office address, management structure, purpose statement, organizer information.
Resident Agent Requirement
Maryland uses "resident agent" (same as registered agent). Must have MD physical address (no PO boxes).
Can use yourself if you have MD address. Professional resident agent: $150-300/year.
Annual Report
Due April 15 every year for ALL Maryland LLCs. $300 fee (one of highest in US).
Unlike most states, Maryland doesn't use formation anniversary. Every LLC files by April 15 regardless of formation date.
Why Same Deadline for Everyone
Maryland aligns LLC annual reports with tax deadline (April 15). Simplifies state processing but creates bottleneck.
LLC formed January 2024 pays first $300 annual report April 2024 (3 months later). LLC formed December 2024 pays April 2025 (4 months later).
MD vs Other Mid-Atlantic States
Maryland $100 + $300/year vs Delaware $90 + $300/year: Similar costs (both expensive).
Maryland $100 + $300/year vs Virginia $100 + $50/year: VA saves $250/year (massive difference).
DC Metro Access
Maryland LLCs get DC metro area access. Good for government contractors, lobbyists, policy organizations.
Proximity to federal agencies and Capitol Hill valuable for certain industries despite high annual fees.
Tax Considerations
Maryland income tax: 2-5.75% state + up to 3.2% local = 8.95% max combined. Pass-through taxation like all LLCs.
No franchise tax beyond $300 annual report. Sales tax: 6% statewide (no local variations).
Baltimore City Additional Taxes
Baltimore City businesses pay additional city income tax. Adds compliance burden for city-based LLCs.
Consider forming in Baltimore County or other MD counties to avoid city-specific taxes.
Operating Agreement
Not required by MD law but HIGHLY RECOMMENDED for all LLCs.
Maryland courts enforce Operating Agreement provisions. Critical for multi-member LLCs.
Foreign LLC
Out-of-state LLCs doing business in Maryland must register as foreign LLC. $100 filing fee.
Annual report still required: $300/year due April 15 (same as domestic LLCs).
When Foreign Registration Required
Maintaining office in MD, employing MD workers, owning MD real estate, regularly conducting business in state.
Online sales to MD customers typically don't require foreign registration (no physical presence).
Common Mistakes
Forming late in year: LLC formed November 2024 pays $300 annual report April 2025 (5 months later). Better to wait until January 2025.
Missing April 15 deadline: ALL Maryland LLCs due same day creates easy-to-remember but easy-to-miss deadline.
Underestimating annual cost: $300/year is 3x California's $800 when amortized (MD $3,000 over 10 years, CA $8,000).
When MD Makes Sense
Choose Maryland LLC if: Government contractor (DC access critical), biotech/healthcare (Maryland clusters), want strong legal framework despite high cost, operating in Maryland/DC metro.
Best for: Federal contractors, lobbying firms, biotech companies (NIH/FDA proximity), healthcare businesses.
Consider alternatives if: Tight budget (VA saves $250/year), operating primarily in other states, no DC-area benefit.
Biotech & Federal Contracting
Maryland strong in biotech (NIH in Bethesda, Johns Hopkins in Baltimore). Many life sciences startups choose Maryland.
Federal contracting businesses benefit from DC proximity and Maryland's established government-business infrastructure.
Trademark Lens verifies Maryland LLC name availability before $100-125 formation costs.