How Much Does an LLC Cost in Maryland
It costs at least $100 to form an LLC in Maryland. But these additional expenses could increase the total to over $3,000.
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Here are the following fees to consider:
- Domestic LLC Registration: $100
- Foreign LLC Registration: $100
- Annual Report: $300
- Permits and Licenses: At least $15
- Business Tax: 2% to 5.75%
- Resident Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Optional Fees: Up to $3,000+
Maryland's diverse business scene in healthcare and tech makes it an attractive location to form an LLC.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
The question is, how much for an LLC in Maryland? Read on to see how much it will cost you.
Maryland Domestic LLC Formation Fee
Cost: $100[1]
To form an LLC in Maryland, you must submit the Articles of Organization to the Department of Assessments and Taxation. Once the documents are approved, your LLC will be recognized as legally separate from you.
A Maryland LLC's Articles of Organization contain the following information:[2]
- Limited Liability Company name
- Business purpose
- Maryland business address (cannot be a P.O. Box)
- Resident agent name and address
You can submit the Articles of Organization online, by mail, or in person. Non-expedited filings typically take at least 4 weeks to be processed. You can get expedited services to form an LLC faster.
Maryland LLC forms filed online, including the Articles of Organization, incur a $3 eCheck fee or a 3% service/convenience fee for credit card and PayPal payments.[1]
Maryland Foreign LLC Formation Fee
Cost: $100[1]
If your LLC is already established in a different state and you want to expand your business to Maryland, you need to register it as a foreign LLC.
Foreign LLCs in Maryland must submit an LLC Registration Form to the Department of Assessments and Taxation and the filing fee.
If your foreign LLC's original name is unavailable in Maryland, you must register a trade name. This assumed name becomes your LLC's official business name only in Maryland.
Maryland LLC Annual Report Fee
Cost: $300[1]
Annual reports are filed with the Department of Assessments and Taxation. It shows any changes to the LLC's business name, mailing address, and other details. Once submitted, your LLC is considered in good standing, allowing you to continue operating.
Annual reports in Maryland are due April 15th each year. You may request a 60-day deadline extension on or before April 15th. Any later, you will accrue a late filing penalty fee of up to $500.[4]You can file online, by mail, or in person.
Businesses owning, leasing, or using personal property worth $20,000 or more in Maryland must file a Personal Property Tax Return.[5] This must be attached to the Annual Report each year. There is no additional cost.
Maryland LLC Permits and License Fees
Cost: At least $15[6]
Most businesses in Maryland need to have a trader's license. The fee is based on the wholesale value of your retail inventory:[6]
| Inventory Amount | Fee |
|---|---|
| 0 - 1,000 | $15 |
| 1,001 - 1,500 | $18 |
| 1,501 - 2,500 | $20 |
| 2,501 - 4,000 | $25 |
| 4,001 - 6,000 | $30 |
| 6,001 - 8,000 | $40 |
| 8,001 - 10,000 | $50 |
| 10,001 - 15,000 | $65 |
| 15,001 - 20,000 | $80 |
| 20,001 - 30,000 | $100 |
| 30,001 - 40,000 | $125 |
| 40,001 - 50,000 | $150 |
| 50,001 - 75,000 | $200 |
| 75,001 - 100,000 | $250 |
| 100,001 - 150,000 | $300 |
| 150,001 - 200,000 | $350 |
| 200,001 - 300,000 | $400 |
| 300,001 - 400,000 | $500 |
| 400,001 - 500,000 | $600 |
| 500,001 - 750,000 | $750 |
| 750,001 and Over | $800 |
All counties except Baltimore City follow the schedule of fees shown in the table above. Traders' licenses must be renewed each year by April 30th.[6]
Additionally, your LLC may need to get local business permits. If your LLC does business in two cities, you may need to get a separate license for each city. The local business permit fees vary per city and could be renewable yearly.
Applications for a trader's license and other Maryland business licenses must provide the following information:[6]
- SDAT
account number - LLC name and trade name (if applicable)
- Employer Identification Number
- Sales & Use Tax Number (from the Comptroller's Office)
- Business address and contact number
- Worker's Compensation Insurance number
- Amount of inventory in dollars (for trader's license only)
Maryland Business Taxes
Cost: 2% to 5.75% of taxable income
Maryland imposes state and local income taxes. Self-employed LLC members must pay state taxes based on taxable income.
2024 Maryland State Income Tax Rates:[7]
| Taxable Net Income | Maryland Tax |
|---|---|
| $0 - $1,000 | 2% |
| $1,000 - $2,000 | $20 plus 3% of the excess over $1,000 |
| $2,000 - $3,000 | $50 plus 4% of the excess over $2,000 |
| $3,000 - $100,000 | $90 plus 4.75% of the excess over $3,000 |
| $100,000 - $125,000 | $4,697.50 plus 5% of the excess over $100,000 |
| $125,000 - $150,000 | $5,947.50 plus 5.25% of the excess over $125,000 |
| $150,000 - $250,000 | $7,260.00 plus 5.5% of the excess over $150,000 |
| Over $250,000 | $12,760.00 plus 5.75% of the excess of $250,000 |
Then, self-employed LLC members must pay federal income taxes
2024 Federal Income Tax Rates:[8]
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 to $11,000 |
| 12% | $11,001 to $44,725 |
| 22% | $44,726 to $95,375 |
| 24% | $95,376 to $182,100 |
| 32% | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 |
| 37% | $578,126 and up |
Self-employed LLC members must also pay the 15.3% federal self-employment tax.[9] This tax covers Social Security and Medicare contributions.
Lastly, don't forget your Business Personal Property Tax Return. If your business has $100,000 of assessed personal property and the local tax in your city is 2%, your tax would be $2,000.
The fees that you'll incur when forming an LLC can be claimed as tax deductions. You can write off the following expenses:
Maryland LLC Optional Fees
While the Maryland LLC fees below are optional, some are unavoidable depending on your business needs. For example, obtaining a Certificate of Good Standing is often necessary when opening a business bank account.
| Maryland LLC Optional Fees | Cost |
|---|---|
| Expedited/Rush Processing Services | $20 to $325 |
| Resident Agent Services | Up to $300+ |
| Statement of Change | $25 |
| Operating Agreement | Up to $500+ |
| Employer Identification Number | $0 - $99 |
| Beneficial Ownership Report | $0 - $149 |
| LLC Name Reservation | $25 |
| LLC Trade Name | $25 |
| Certificate of Correction | $25 |
| Articles of Amendment | $100 |
| Certified Copy of Documents | $20 |
| Certificate of Status | $20 |
| Website Domain | $10 to $20 |
| Business Insurance Premiums | Varies |
Maryland LLC Expedited Service Fees
Cost: $20 to $325[1]
Maryland offers expedited services to process your LLC application faster:[1]
| Service Type | Duration | Cost |
|---|---|---|
| Expedited | 7 to 10 business days | $20 to $50 |
| Rush | Within 3 hours (file by 2:30 PM) | $325 |
It takes at least 4 weeks to get an LLC in Maryland. Non-expedited filings are typically processed during the second month after the month you file documents.[10]
Maryland LLC Resident Agent Fees
Cost: $0 to $400
A resident agent is responsible for receiving business and legal documents on behalf of your LLC. This includes government notices, tax forms, and annual reporting forms.
You can be the LLC's resident agent if you're at least 18 and have a physical street address in Maryland. You must be available to receive documents during regular business hours.
Alternatively, you could hire a registered agent service to avoid putting personal details on the public record.
Registered Agent Service - $125/year
- Business address included
- Free mail forwarding
- Lifetime guide service with business experts
- Never sell your data. Ever.
You'll need to get a person's consent before appointing them as a resident agent. Their signature is required for the Articles of Organization form.
Maryland LLC Statement of Change Fee
Cost: $25[1]
An LLC can change its resident agent's details anytime. If this happens, you must submit a statement of change to the Department of Assessments and Taxation as soon as possible. Changes include the resident agent's name and address.
In Maryland, the Articles of Amendment are used to change the business name, address, and other details. The statement of change is focused solely on changes regarding the registered agent.
Maryland LLC Operating Agreement Fee
Cost: $0, or up to $500+
LLCs in Maryland are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Maryland. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Employer Identification Number
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Maryland don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
Beneficial Ownership Information Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.[11]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Maryland LLC Name Reservation Fee
Cost: $25[12]
If you've already got a business name but are not yet ready to form an LLC, you can reserve your desired name first. Paying the name reservation fee will prevent others from using that name for 30 days.[12]
You can renew the name reservation for another 30 days for the same price. Just with a different form.[13]
Remember to review Maryland's detailed list of naming regulations to prevent your reservation from being rejected. An LLC name must include LLC, Ltd., or a similar abbreviation.
Check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL to prevent others from acquiring it.
Maryland LLC Trade Name Fee
Cost: $25[1]
A trade name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state.
Some LLCs use a DBA for branding purposes. It's also ideal if you want to use a name that doesn't have an "LLC" at the end. Regardless, trade names must be renewed every five years for the same price.
An assumed name registration allows a business to operate under a name different from its legal name. Meanwhile, a trademark is an intellectual property protection that legally protects your brand name, logo, or slogan at the national level.
Maryland LLC Certificate of Correction Fee
Cost: $25[1]
After your Maryland LLC application is approved, review all the details of the Articles of Organization carefully.
If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing a Certificate of Correction.
Maryland LLC Articles of Amendment Fee
Cost: $100[1]
Your Maryland LLC's Articles of Organization contains specific details about your business. Should these details change, you must submit the Articles of Amendment to the Department of Assessments and Taxation.
File the Articles of Amendment if you:
- Change the LLC name
- Update the business purpose
- Move to a new address
A Certificate of Correction is for fixing mistakes in initial filings. Meanwhile, the Articles of Amendment update key details as the LLC evolves.
Maryland LLC Certified Copy Fee
Cost: $20[1]
Certified copies of documents verify that your LLC is legitimate and that its details are accurate.
You might need these for circumstances like opening a business bank account or expanding your LLC in another state.
Additionally, some LLCs keep certified copies of their initial Articles of Organization and Articles of Amendment (if any) for recordkeeping purposes.
Maryland LLC Certificate of Status Fee
Cost: $20[1]
A Certificate of Status, also known as a Certificate of Good Standing, is an official document by the Department of Assessments and Taxation. It verifies that your LLC is updated with all state filings and has paid all its state fees and taxes.
You might need a Certificate of Status to:
- Open a bank account
- Apply for business loans
- Qualify for business insurance
- Conduct business as a foreign LLC
Contact the Department of Assessments and Taxation to ask why your LLC is in bad standing. The most common reasons include:
- Failure to file the annual report
- Failure to renew the annual state trade license
- Not having a resident agent in Maryland
Business Website Domain Fee
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Business Insurance Premiums
Cost: Varies
Most businesses with one or more employees in Maryland must have workers' compensation insurance.[14]
Maryland does not have a state-funded workers' compensation, but you can purchase through Chesapeake Employers' Insurance Company, Maryland's guaranteed insurer.[14]
Alternatively, you can self-insure or get it from a private company. The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.
You might also be required to get other types of insurance:
- General liability insurance
- Commercial property insurance
- Professional liability insurance
- Cyber liability insurance
Bottom Line
In summary, the Articles of Organization fee costs $100 in Maryland. Annual reports are filed yearly, with a $300 filing fee.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Business Formation Service - $39 + State Fees
- Form Your LLC, Corporation, or Nonprofit Today
- A Fully-Formed Business
- Registered Agent Service
- Business Address
- Mail Forwarding
- Privacy by Default
Economy Package at $149 + State Filing Fees
- Name check service
- Business consultation
- Digital welcome packet
- Customizable WIX website
Starter - $0 + State Filing Fees
- Includes 1 optional free year of Worry-Free Compliance that renews at $199/year
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
The total cost will increase depending on the additional services, documents, and licenses your LLC needs. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.
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References
- ^ Maryland.gov. Fee Schedule, Retrieved 06/26/2024
- ^ Maryland Department of Assessments & Taxation. Articles of Organization, Retrieved 06/26/2024
- ^ Maryland Department of Assessments & Taxation. Limited Liability Company Registration (For non-Maryland Limited Liability Company), Retrieved 06/26/2024
- ^ Maryland Department of Assessments and Taxation. Instructions for Form 1 The Annual Report & Business Personal Property Return, Retrieved 07/30/2024
- ^ Maryland.gov. Registrations & Filings, Retrieved 06/26/2024
- ^ Maryland Courts. Business Licenses, Retrieved 06/26/2024
- ^ Comptroller of Maryland. Tax Information for Individual Income Tax, Retrieved 06/26/2024
- ^ IRS. Federal Income Tax Rates and Brackets, Retrieved 06/26/2024
- ^ IRS. Self-Employment Tax (Social Security and Medicare Taxes), Retrieved 06/26/2024
- ^ Maryland.gov. Registrations & Filings, Retrieved 06/26/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ Maryland Department of Assessments & Taxation. Corporate Name Reservation Application, Retrieved 06/26/2024
- ^ Maryland Department of Assessments & Taxation. Corporate Name Reservation Application for Re-Reservation, Retrieved 06/26/2024
- ^ Maryland Workers' Compensation Commission. Questions & Answers for Employers, Retrieved 06/26/2024
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