To start an LLC in Maryland, you file Articles of Organization with the State Department of Assessments and Taxation (SDAT) and pay a $100 filing fee. Before you file, pick a compliant name and line up a resident agent with a Maryland street address. After formation, you’ll want an EIN, the right state tax registrations, a business bank account, and a calendar reminder for the annual report. The whole process runs through the Maryland Business Express portal and can be finished online in a single sitting.
Choose a Name for Your LLC
Maryland requires every LLC name to end with a designator identifying it as a limited liability company. Acceptable options are “Limited Liability Company,” “L.L.C.,” “LLC,” “L.C.,” or “LC.”1Maryland General Assembly. Maryland Code Corporations and Associations 1-502 The name also has to be distinguishable from every other business entity already on file with SDAT. The business entity search on the Maryland Business Express portal will tell you whether a name is available, at no cost.2Maryland Business Express. Select a Business Name
If you’ve settled on a name but aren’t ready to file, Maryland lets you reserve it for 30 days by submitting a name reservation application and paying a $25 fee.3Maryland State Department of Assessments and Taxation. Name Reservation
Appoint a Resident Agent
Every Maryland LLC must maintain a resident agent and a principal office located in the state.4Justia Law. Maryland Code Corporations and Associations 4A-210 The resident agent is the person or business designated to receive legal documents, tax notices, and official correspondence for the LLC. You can name yourself, another member, or a professional registered agent service.
The agent’s address has to be a physical Maryland street address, not a P.O. Box, and the agent needs to be available there during normal business hours.5Maryland State Department of Assessments and Taxation. Articles of Organization for Limited Liability Company Your home address works, but it becomes part of the public record. That’s why many owners hire a commercial registered agent service.
File Articles of Organization
Articles of Organization is the document that officially forms the LLC. Maryland statute requires it to include four items: the LLC’s name, its purpose, the address of its principal office in Maryland, and the name and address of its resident agent.6Justia Law. Maryland Code Corporations and Associations 4A-204 The purpose can be stated broadly; most filers use “any and all lawful business.” The principal office address must be a physical Maryland location, not a P.O. Box.5Maryland State Department of Assessments and Taxation. Articles of Organization for Limited Liability Company
You can file online through Maryland Business Express or mail the completed form to SDAT. The base fee is $100.7Maryland Business Express. Fees Schedule Online filings include an automatic $50 expedited processing fee, so the online total is $150. Paper filings sent by mail go through standard processing, which can take six to eight weeks.8Maryland Department of Assessments and Taxation. SDAT Releases Enhanced Processing Speeds Business Filings
After SDAT approves the filing, you’ll receive confirmation of the LLC’s formation. Banks, licensing agencies, and other parties will ask to see it as proof the business exists.
Create an Operating Agreement
Maryland doesn’t require you to file an operating agreement with SDAT, but the LLC statute expressly authorizes members to create one to govern the business. An operating agreement can set how profits and losses are shared, who has management authority, how new members are admitted, and the procedures for votes and meetings.9Maryland General Assembly. Maryland Code Corporations and Associations 4A-402
Single-member LLCs benefit from one too. Without an agreement, disputes fall back on the statutory defaults, which may not match what you actually intended. The document also reinforces the separation between owner and business, which is the whole reason to form an LLC. Courts are more likely to respect the liability shield when the LLC operates like a real entity with documented governance.
Get an Employer Identification Number
An Employer Identification Number (EIN) is a free federal tax ID issued by the IRS. You’ll need one to open a business bank account, hire employees, or file certain tax returns. Multi-member LLCs always need an EIN because the IRS treats them as partnerships by default. Single-member LLCs technically don’t need one for federal tax purposes alone, but most still want one for banking and state registration.10Internal Revenue Service. Employer Identification Number
The fastest route is the online application on irs.gov, which issues the number immediately.11Internal Revenue Service. Get an Employer Identification Number Fax and mail are also available but slower.
Register for Maryland Taxes
Federal identification is handled by the EIN. Maryland has separate registrations depending on what the LLC does.
Income Tax
Maryland treats most multi-member LLCs as pass-through entities, so the LLC itself doesn’t pay state income tax. Each member reports their share on a personal Maryland return. The LLC still files Maryland Form 510 (Pass-Through Entity Income Tax Return), and if any members are Maryland nonresidents, the LLC must withhold and remit tax on their behalf.12Comptroller of Maryland. Business Income Tax Information Single-member LLCs report business income on their individual Maryland return.
Sales and Use Tax
If the LLC sells taxable goods or certain services, you need a sales and use tax license from the Comptroller of Maryland. Registration runs through the Maryland Tax Connect portal, and you’ll need your EIN first. Allow about two weeks for processing.
Employer Withholding
LLCs that hire employees must register for a Maryland income tax withholding account. The Comptroller’s Combined Registration Application lets you sign up for withholding, sales tax, and other state accounts in one pass.
Open a Business Bank Account
Keep personal and business finances completely separate. Commingling funds is the fastest way to lose the liability protection the LLC provides, because a court can decide the LLC is just an alter ego and hold you personally responsible for business debts. Most banks will want your EIN, a copy of the approved Articles of Organization, and the operating agreement.13U.S. Small Business Administration. Open a Business Bank Account
Obtain Licenses and Permits
Maryland doesn’t issue a single general business license at the state level. Requirements depend on your industry and location. Many counties and municipalities require their own business licenses, and fees vary widely. Maryland Business Express can identify state-level licenses that apply. For local permits and zoning clearances, contact the county or city where the LLC will operate. Some industries, including food service, construction, and health care, have additional state-level licensing handled by the relevant regulatory board.
If You Plan to Hire Employees
Employers pick up several additional obligations beyond the withholding account.
Unemployment Insurance
Every Maryland employer must register for an unemployment insurance account through the state’s BEACON portal. Once registered, you’re responsible for reporting employee wages, paying quarterly unemployment insurance taxes, and reporting new hires.14Maryland Department of Labor. New Employers
Workers’ Compensation Insurance
Maryland requires every employer with one or more employees to carry workers’ compensation insurance. There is no small-employer exemption. LLC members themselves can elect to be excluded from coverage by filing Form IC-16 with the Workers’ Compensation Commission, but employees must still be covered.15Workers’ Compensation Commission. Exclusion Form IC-16
Workplace Postings
Maryland employers must display required workplace posters in a visible area, including notices about unemployment insurance rights and health insurance coverage. SDAT sends these automatically when your employer accounts are set up, and you can also download them from the Maryland Department of Labor website.14Maryland Department of Labor. New Employers
File the Annual Report Every Year
Every Maryland LLC must file a Form 1 Annual Report and Personal Property Tax Return with SDAT by April 15 each year.16Maryland Department of Assessments and Taxation. Instructions for 2025 Business Entity Annual Report Form 1 The filing fee is $300.17Maryland Department of Assessments and Taxation. SDAT Annual Report Fee Elimination You have to file even if the LLC owns no business personal property in Maryland. If the LLC does own personal property with an original cost of $20,000 or more, you’ll also complete the personal property return section of the form.
This is the single most common compliance trip-up for Maryland LLCs. Missing the deadline puts the LLC out of good standing, and SDAT can eventually forfeit the business. A forfeited LLC cannot legally operate in Maryland.18Maryland Business Express. Maintain Good Standing Status Reinstatement is possible but involves added fees and paperwork. Set a calendar reminder for March so you have a buffer.