To get an LLC in Maryland, file Articles of Organization with the State Department of Assessments and Taxation (SDAT) for a $100 base fee, either online through the Maryland Business Express portal or by mail to SDAT’s Charter Division in Baltimore.1Maryland Business Express. Register Your Business in Maryland Before you file, you need a compliant business name, a resident agent with a physical Maryland street address, and a Maryland principal office address. After the state approves your LLC, you’ll deal with an EIN from the IRS, a federal tax classification choice, a yearly report due every April 15, and possibly a local business license.
Pick a Name That Meets Maryland’s Rules
Your LLC name must include one of these designators: “Limited Liability Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.”2Maryland General Assembly. Maryland Code Corporations and Associations 1-502 – Requirements3Maryland State Department of Assessments and Taxation. Articles of Organization4Maryland General Assembly. Maryland Code Corporations and Associations 1-503 – Names, Implication of Purpose
Run your preferred name through the business entity search on Maryland Business Express before you get attached to it.5Maryland Business Express. Select a Business Name The search is free and takes about 30 seconds.
Appoint a Resident Agent
Every Maryland LLC must have a resident agent to accept lawsuits, tax notices, and other official documents on the company’s behalf.6Maryland General Assembly. Maryland Code Corporations and Associations 2-108 – Required Resident Agent If you get sued and nobody is available to accept the papers, you can lose the case by default before you even know it exists.
The agent has to be either a Maryland citizen who lives in the state, or a Maryland corporation, LLC, limited partnership, limited liability limited partnership, or business trust.6Maryland General Assembly. Maryland Code Corporations and Associations 2-108 – Required Resident Agent The address must be a physical Maryland street address, not a P.O. box. Solo owners often list themselves at their home address, which is legal but puts that address on the public record. Commercial registered agent services typically charge $50 to $300 per year, keep your personal address off filings, and make sure someone is available during business hours to accept service of process.
File the Articles of Organization
The Articles of Organization is the document that actually creates your LLC. Maryland law requires it to include three things: the LLC’s name, the address of its principal office in Maryland along with the resident agent’s name and address, and any additional provisions the members want to add.7Maryland General Assembly. Maryland Code Corporations and Associations 4A-204 The principal office address must be a physical Maryland location, and it can be your home if you don’t have a commercial space yet.3Maryland State Department of Assessments and Taxation. Articles of Organization
The form also asks for a business purpose. Most owners write something broad like “any lawful purpose” so they don’t have to amend the articles later if the business changes direction.
How to File
File online through Maryland Business Express, or mail the completed form to SDAT’s Charter Division at 700 East Pratt Street, Suite 2700, Baltimore, MD 21202.3Maryland State Department of Assessments and Taxation. Articles of Organization Online filing is faster and gives you an immediate confirmation.
Fees and Processing Times
SDAT offers several filing speeds:8Maryland State Department of Assessments and Taxation. Articles of Organization for a Limited Liability Company
- Standard filing is $100 and takes roughly six to eight weeks.
- Expedited filing is $150 (the $100 base fee plus a $50 expedite fee) and is reviewed within 7 to 14 business days.
- Same-day filing online costs $425.
- Same-day filing in person or by drop box costs $525.
Paying through Maryland Business Express adds a 3% convenience fee.9Maryland State Department of Assessments and Taxation. List of Fees for Charter Services and Document Filings Filing online doesn’t automatically mean expedited. You can submit online at the standard $100 rate and simply wait out the longer review period.
Write an Operating Agreement
Maryland does not require an operating agreement to be in writing unless your articles of organization say otherwise.10Maryland General Assembly. Maryland Code Corporations and Associations 4A-402 Skipping one anyway is a common mistake. Without a written agreement, you fall back on Maryland’s statutory rules for profit-sharing, management authority, and what happens when a member wants to leave, and those defaults probably don’t match what you actually agreed to.
The document stays internal. You don’t file it with the state. All initial members must agree to it, and any amendments require unanimous consent unless the agreement itself sets a different method for changes.10Maryland General Assembly. Maryland Code Corporations and Associations 4A-402 A workable agreement covers how profits and losses are split, who can sign contracts, what happens when a member wants to sell their interest, and how disputes get resolved. Single-member LLCs benefit too, because a written agreement reinforces the separation between owner and business.
Get an EIN and Choose a Tax Classification
Once SDAT approves your articles, apply for an Employer Identification Number (EIN) from the IRS. You need one if your LLC has more than one member, plans to hire employees, or elects corporate taxation. Even single-member LLCs should get one, because banks generally require it to open a business account and using an EIN keeps your Social Security number off business paperwork.11Internal Revenue Service. Get an Employer Identification Number
The online application is free, takes about 10 minutes, and issues the EIN immediately. You have to finish in a single session because the IRS doesn’t let you save and return.11Internal Revenue Service. Get an Employer Identification Number Wait until SDAT has approved your LLC before applying, so the IRS can match your entity.
Federal Tax Classification
The IRS has no separate tax category for LLCs. It uses a default based on member count. A single-member LLC is treated as a “disregarded entity,” meaning income flows to your personal return. A multi-member LLC defaults to partnership taxation, with each member reporting their share on their own return.12Internal Revenue Service. Limited Liability Company (LLC)
You can override the default. Filing IRS Form 8832 lets your LLC elect corporate taxation instead.13Internal Revenue Service. About Form 8832, Entity Classification Election Some LLCs go further and elect S-corporation status through Form 2553, which can lower self-employment taxes for owners who pay themselves a salary. Whether that math works depends on your income, how you plan to take money out, and whether the added complexity of payroll and corporate returns is worth the savings. A conversation with a tax professional before you elect anything usually pays for itself.
File the Annual Report Every April 15
Every Maryland LLC must file a combined Annual Report and Personal Property Tax Return (Form 1) by April 15 each year, whether or not the business earned income or owns any physical assets. The filing fee for LLCs is $300.14Maryland Department of Assessments and Taxation. Form 1 Annual Report and Business Personal Property Return The report updates SDAT on your principal office, resident agent, and current members or managers. Filing online through Maryland Business Express updates your status the same day.15Maryland State Department of Assessments and Taxation. Annual Business Filings Now Available
Missing April 15 costs you. Your LLC loses “good standing” status, which can block you from filing lawsuits in Maryland courts, getting business loans, or signing certain contracts. If the delinquency continues, SDAT can forfeit your LLC’s charter after a written demand and a 15-day forfeiture notice. Once forfeited, the LLC is treated as though it never existed, and the liability protection you formed it for disappears with it.
Check Local Licenses and Permits
SDAT registration makes your LLC a legal entity, but it doesn’t license you to operate. Many counties and municipalities require their own business licenses, and the requirements vary by location and industry.16Maryland Business Express. Obtain Licenses or Permits A restaurant in Montgomery County will face a different permit stack than an accounting firm in Baltimore City. Contact your county’s Clerk of the Circuit Court or office of inspections and licensing to find out what applies before you start operating. Fees and renewal schedules differ widely, so budget for this step rather than leaving it for later.