Fact Checked by Editorial Staff
Perhaps you are hoping to form an LLC in Maryland. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Maryland.
On this page, you’ll learn about the following:
Maryland LLC Cost of Filing
Here are the costs involved in forming an LLC in Maryland.
Cost of Filing Formation Certificates
The Maryland Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Maryland Secretary of State.
Maryland Domestic LLC
- Online filing fee costs $100.00
- Expedited filing costs $50.00
- Annual report fee costs $300.00
- Personal Property Return for Domestic LLC costs $300.00
- LLC Name reservation Application costs $25
- By mail: Fill in the application form, and submit it to the following address: State Department of Assessments and Taxation, Charter Division, 301 W., Preston Street, 8th Floor, Baltimore, MD 21201-2395, costs $100
Maryland Foreign LLC
- Online Filing fee costs $100.00
- Expedited filing costs $50.00
- Annual Report filing costs $100.00
- Personal Property Return costs $300.00
- LLC Name reservation Application costs $25
- By mail: Fill in the application form, and submit it to the following address: State Department of Assessments and Taxation, Charter Division, 301 W., Preston Street, 8th Floor, Baltimore, MD 21201-2395, costs $100
Visit the official Maryland egov website to learn more about the costs of setting up an LLC in Maryland.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Maryland LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Maryland, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Maryland Department of Revenue for regulatory boards or agencies requiring licensing.
Maryland LLC Taxes to be Paid
Apart from the filing of the Annual Report, the DC LLCs are also subject to state tax filing obligations. Though the taxes vary from place to place.
Personal Property Tax Return
Any property that is being utilized by your business LLC in the State of Maryland is subject to Personal Property Tax Return, such as equipment, inventories, supplies, etc.
Maryland Sales and Use Tax
Maryland imposes sales tax at the standard rate of 6.00%. Generally, there are no other additional local or county rates imposed on this rate. In case of late filing, a penalty may be imposed up to 25%.
State Business Tax
Like most of the States, Maryland imposes a corporate income tax on LLC businesses at the rate of 8.25% of net income earned in a given financial year.
State Employer Taxes
If you hire local employees in the State of Maryland, you must pay state employer tax. At present, the State tax rate is between 2% to 5.57% depending on the income earned from the LLC.
Self-Employment Tax
This tax is levied on the profits gained from the business of your LLC operating in Maryland. Currently, the tax rate is 15.3%.
Cost Comparison among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Maryland, read the table below:
| State | Filing Fee | Annual Fee/Biennial Fee | Sales Tax |
| Maryland LLC | $150 | $300 (Annual) | 6% |
| Pennsylvania LLC | $125 | $70 (Decennial) | 6% |
| Delaware LLC | $90 | $300 (Annual) | 0% |
| Virginia LLC | $100 | $50 (Annual) | 5.3% |
| West Virginia LLC | $100 | $25 (Annual) | 6.0% |
The largest sectors in 2020 in Maryland were finance, insurance, real estate, and professional and business services. Its GDP ranks 15th among the US states and offers a wide window of opportunities for new businesses to establish themselves in the State.
Other Costs
- Maryland Name Reservation: $100 for online filings and by mail (plus $50 for expedited service)
- Doing Business As (DBA): $25 for online filling or if filing by mail
- Certified Document Copies: $20 + $1 per page.
- Certificate of Good Standing: $20 (plus $20 for expedited service)
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Maryland LLC: $0 (plus $50 for expedited service)
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in Maryland
To maintain an LLC in Maryland you will need to pay an annual fee of $300 along with sales tax at 6%, state business tax at 8.25% to 7.15%, state employer tax at 2% to 5.57% and federal taxes.
One of the primary costs of maintaining an LLC in Maryland is the initial registration fee. When establishing an LLC, individuals must pay a fee to the state to register their business entity. This fee covers the administrative costs associated with processing the registration paperwork and officially recognizing the LLC as a legal entity in Maryland. It is important for business owners to budget for this expense when planning to form an LLC in the state.
Additionally, LLCs in Maryland are required to pay an annual filing fee to maintain their status as an active business entity. This fee helps support the state’s maintenance of business records and ensures that businesses meet their ongoing compliance obligations. Failing to pay the annual filing fee may result in penalties or even the dissolution of the LLC, so it is essential for business owners to fulfill this financial obligation on time each year.
Another cost associated with maintaining an LLC in Maryland is the need to file annual reports. LLCs are required to submit an annual report to the state, providing updated information about the business entity, its members, and its operations. This reporting requirement is designed to keep the state informed about the status of LLCs operating within its jurisdiction and to ensure transparency and accountability in business activities. While submitting an annual report may incur a nominal fee, it is a necessary expense to comply with state regulations.
In addition to these ongoing costs, business owners should also consider other expenses associated with running an LLC in Maryland. These may include hiring a registered agent to receive legal documents on behalf of the LLC, maintaining business insurance coverage, paying annual taxes, and fulfilling any other regulatory requirements specific to the industry or business activity. While these costs may vary depending on the nature and size of the business, it is important for business owners to factor them into their financial planning to avoid any surprises or disruptions in their operations.
Ultimately, the cost of maintaining an LLC in Maryland is a necessary investment for entrepreneurs and business owners seeking to establish a legal and compliant business entity in the state. By understanding and budgeting for these financial obligations, individuals can ensure the smooth operation and longevity of their LLC and focus on achieving their business goals. As with any business venture, careful consideration of the costs and requirements associated with running an LLC in Maryland is essential for success in the competitive business landscape.
In Conclusion
The cost of Maryland is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.
How do we go about filing for a Foreign LLC in DC whem my Original LLC is in Virginia