To form an LLC in Maryland, file Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT) and pay a $100 filing fee. You can do the whole thing online through the Maryland Business Express portal, and SDAT sends confirmation once your filing is accepted. From there, you’ll need a federal tax ID, any state tax accounts that apply to your business, and an operating agreement to actually run the company.
Pick and Clear a Name
Your LLC name has to be distinguishable from every other business already on file with SDAT. Search the department’s database through Maryland Business Express before you file so you don’t waste the $100 on a rejected submission.1Maryland Business Express. Register Your Business in Maryland
Maryland also requires a designator on the name. Under the statute taking effect October 1, 2026, the acceptable options are “Limited Liability Company,” “L.L.C.,” “LLC,” “L.C.,” or “LC.”2Maryland General Assembly. Maryland Code Corporations and Associations 1-502 Most founders go with “LLC.”
If you plan to operate under a name different from your registered LLC name, file a trade name application with SDAT. It costs $25 and lasts five years before renewal.3Maryland Department of Assessments and Taxation. Trade Name Application
Line Up a Resident Agent
Every Maryland LLC needs a resident agent to accept lawsuits and government notices for the company.4Maryland General Assembly. Maryland Code Corporations and Associations 4A-210 The agent has to be an adult Maryland citizen, a Maryland corporation, a Maryland LLC, or a Maryland limited partnership.5Maryland Business Express. Register Your Business – Section: Resident Agent
The address must be a real Maryland street address. P.O. boxes, UPS stores, mailbox services, and virtual addresses don’t qualify.5Maryland Business Express. Register Your Business – Section: Resident Agent Many single-member LLCs list the owner as the resident agent at a home or office address. If you’d rather keep your address off public records, commercial agent services generally run under $200 a year.
File the Articles of Organization
The Articles of Organization is the document that legally creates your LLC. Under ยง 4A-204, the filing only needs three things:6Maryland General Assembly. Maryland Code Corporations and Associations 4A-204
- The LLC name, with one of the approved designators.
- The street address of the LLC’s principal office in Maryland, plus the name and address of the resident agent.
- Any optional provisions you want to include, such as a statement limiting member authority. The statute doesn’t require a purpose statement, though SDAT’s form has a field for one; most founders write something broad like “any lawful purpose” if they fill it in.
File online through Maryland Business Express or mail the paper form to SDAT in Baltimore. The fee is $100 for domestic LLCs.7Maryland Department of Assessments and Taxation. Articles of Organization For an extra $50, a hand-delivered or drop-box filing gets reviewed in 7 to 10 business days.8State Department of Assessments and Taxation. SDAT Corporate Charter Fee Schedule Online filings generally process faster than mailed ones even without paying to expedite.
Once SDAT accepts the filing, it issues an acknowledgment or certified copy confirming your LLC exists. The effective date is the date SDAT stamps and accepts the filing. Save that confirmation. Banks, tax agencies, and licensing offices will ask for it.
Get a Federal EIN
After SDAT approves the LLC, get an Employer Identification Number from the IRS. Banks require it to open a business account, and it goes on every federal tax return.9Internal Revenue Service. Get an Employer Identification Number
The application is free on the IRS website. You’ll need the Social Security number or Individual Taxpayer Identification Number of the “responsible party,” meaning the person who controls or manages the LLC.9Internal Revenue Service. Get an Employer Identification Number Most applicants get the number immediately after finishing the online form. Ignore third-party sites that charge for this. The IRS never does.
By default, a single-member LLC is treated as a “disregarded entity” for federal tax, so income and expenses flow to your personal return. A multi-member LLC is taxed as a partnership.10Internal Revenue Service. Single Member Limited Liability Companies You can elect corporate or S-corp treatment later, but that’s a decision to make with a tax professional once revenue is clearer.
Register With the Maryland Comptroller
SDAT registration creates the entity. It doesn’t set up your state tax accounts. If the LLC will have employees, collect sales tax, or withhold income tax, register separately with the Comptroller of Maryland through the Maryland Tax Connect Portal. That covers income tax withholding, sales and use tax licenses, admissions and amusement tax accounts, and unemployment insurance.11Maryland Comptroller. Maryland Combined Registration Online Application
You’ll need the federal EIN to complete this step, so handle the IRS first. Processing typically takes about two weeks, and any licenses or coupons arrive by mail. Even service businesses with no employees and no taxable sales should check in with the Comptroller. Maryland has industry-specific taxes that catch some new owners off guard.
Put an Operating Agreement in Writing
Maryland doesn’t require a written operating agreement, and SDAT won’t ask for one when you file.12Maryland General Assembly. Maryland Code Corporations and Associations 4A-402 Skipping it anyway is one of the more common mistakes new owners make. Without one, you’re relying on Maryland’s statutory defaults to govern the business, and those defaults may not match what you and any co-owners actually want.
A typical agreement covers how profits and losses are split, who can sign contracts and move money, what happens when a member leaves, and how disputes get resolved. For a single-member LLC, the document is simpler but still worth having. It shows the LLC operates as a separate entity from you personally, which helps if anyone challenges your liability protection in court.
The agreement should also spell out whether the LLC is member-managed, with every owner running day-to-day operations, or manager-managed, with designated people (owners or not) handling operations while other members stay passive. All members must agree to the initial operating agreement at the time of formation.12Maryland General Assembly. Maryland Code Corporations and Associations 4A-402
Keep Up With the Annual Report
Every Maryland LLC has to file a Form 1 Business Entity Annual Report and Personal Property Tax Return with SDAT each year to stay in good standing. The deadline is April 15.13Maryland Department of Assessments and Taxation. 2025 Business Entity Annual Report Form 1 Instructions The report updates SDAT on your current address, resident agent, and other basic details. If the LLC owns tangible personal property in Maryland, such as equipment, furniture, or inventory, that gets reported on the same form for property tax purposes.
The filing fee is $300. Missing the deadline drops the LLC out of good standing, which brings real problems: banks may freeze accounts, you may not be able to sue in the LLC’s name, and contract partners may question your authority. If the delinquency continues, SDAT eventually forfeits the LLC’s charter, stripping the legal protections that came with it.14Maryland State Department of Assessments and Taxation. Annual Business Filings Now Available Reinstating a forfeited entity carries additional penalties.15Maryland Department of Assessments and Taxation. Annual Report Return
If April 15 isn’t going to happen, SDAT offers a free two-month extension through its online system that pushes the due date to June 15.14Maryland State Department of Assessments and Taxation. Annual Business Filings Now Available Use it.
Federal Beneficial Ownership Reporting Does Not Apply
Older guides may say new LLCs have to file a Beneficial Ownership Information report with the Financial Crimes Enforcement Network under the Corporate Transparency Act. As of March 2025, FinCEN published a rule formally exempting all entities created in the United States. Only entities formed under foreign law and registered to do business in a U.S. state are now considered “reporting companies.”16Financial Crimes Enforcement Network. Beneficial Ownership Information Reporting A Maryland domestic LLC does not need to file a BOI report.