1. Maryland LLC Overview

If you operate a business in Maryland, forming a local LLC is generally required. While neighboring Virginia has a $50 annual fee, Maryland imposes a higher $300 annual fee.

  • Affordable formation fee — $100 to file online
  • High annual fee — $300 per year
  • County taxes — Note that MD counties levy additional local income and property taxes

2. Maryland LLC Requirements

  • Name must contain "Limited Liability Company," "LLC," or "L.L.C."
  • Appoint a Resident Agent with a Maryland physical address
  • File Articles of Organization via Maryland Business Express ($100)
  • File an Annual Report / Personal Property Return by April 15 ($300)

3. Maryland LLC Costs and Fees (2026)

Cost Item Amount Notes
Articles of Organization$100One-time state filing fee
Annual Report$300/yearDue April 15
Resident Agent$50–$150/yearRequired MD physical address
EINFreeApply at IRS.gov
Operating Agreement$0–$1,000Recommended, not legally required

4. How to Start a Maryland LLC (Step by Step)

  1. 1 Choose your LLC name (must include "Limited Liability Company," "LLC," or "L.L.C.")
  2. 2 Appoint a Resident Agent with a Maryland physical address
  3. 3 File Articles of Organization with the MD Department of Assessments and Taxation ($100)
  4. 4 Obtain an EIN from the IRS (free at IRS.gov)
  5. 5 Draft an Operating Agreement (not filed, but legally binding)
  6. 6 File the Annual Report and Personal Property Return by April 15 each year ($300)
  7. 7 Open a business bank account
Combined Annual Filing

In Maryland, your Annual Report and your Personal Property Tax Return are the same form. You must file this form and pay the $300 fee by April 15 every year, even if your business owns no equipment or personal property.

5. Maryland Annual Report

Failure to file the Annual Report by the April 15 deadline will result in late penalties and, eventually, the forfeiture of your LLC's right to do business in the state.

6. Maryland LLC Taxes (2026)

  • State income tax — 2% to 5.75% graduated rate on pass-through profits
  • County income tax — ~2.25% to 3.20% depending on the county
  • Personal Property Tax — Varies by county, assessed on the value of business equipment
  • Federal income tax — Pass-through to personal return
  • Sales tax — 6% state rate (localities in MD do not charge additional sales tax)

7. Best For / Not Best For

Best For

  • Entrepreneurs living and operating in Maryland
  • Government contractors in the DC metro area

Not Best For

  • Out-of-state owners without Maryland nexus
  • Cost-sensitive founders (the $300 annual fee is higher than average)