LLC Cost in Maryland – How much to pay for an LLC


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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.

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

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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:

StateFiling FeeAnnual Fee/Biennial FeeSales 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

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.

For any new business, forming an LLC is a big deal. You’ll be responsible for paying a variety of taxes, including federal sales tax, self-employment taxes, and payroll taxes. While some fees are standard for Maryland LLCs, others may be waived if you meet certain criteria. Listed below are the most common fees. The costs of forming and maintaining an LLC in Maryland may vary, depending on your business’s goals, industry, and location.

Choosing a business name. You’ll need to choose a name for your company and check its availability. If there are errors in the name, you can file Articles of Amendment. When preparing your LLC documents, the Maryland state department recommends you use a computer, typewriter, or handwritten submission. For standard processing, an LLC should allow at least six weeks. For an extra fee, you can file your annual report with the state. You’ll be charged the expedited rate automatically if you file online, but you can also submit paper versions of your documents.

A basic LLC registration in Maryland costs approximately $100. This fee includes the payment processing fees. A small business bank account is free for the first year. An Employer Identification Number (EIN) is available free of charge from the IRS for federal tax filing. Additionally, your LLC must file an annual report by April 15th. This process costs around $300, and you can submit an electronic version of your report online or print one out and submit it in person or send it to the state office.

There are also a number of fees you may have to pay. Failure to pay taxes on time can cause late fees, as well as loss of good standing. Eventually, you could lose your business if you do not reconcile your finances with the state. You can find a free business checking account in Maryland by calling several banks in the state. While some banks charge a monthly maintenance fee for an LLC checking account, others do not. Typically, a business check account comes with a debit card or business credit card. A business credit card can also earn you rewards and protect your business name.

Many LLCs hire a registered agent service to act as the state’s representative. A registered agent is a person designated by the state to receive important documents on behalf of the LLC. This person will notify the LLC about the documents it receives and forward them to the appropriate place. Depending on your business, you may get the year of registered agent service for free with your formation. Alternatively, you can hire a registered agent service for about $150 a year, and some services even include it for free the first year.

In addition to the cost of operating a Maryland LLC, you’ll need to pay various licensing fees. These fees vary by industry and location. You can contact local government agencies to learn more about the costs of licensing your business. Additionally, you’ll have to pay state taxes and file an Annual Report. For the federal government, LLCs in Maryland do not pay separate taxes. Profits and losses flow through the LLC’s owners, and you’ll file your personal tax return when it’s time to file your income taxes.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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.

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