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.

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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:

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.

The initial setup of an LLC in Maryland costs about $100, including the filing fee and payment processing fees. However, there may be additional fees depending on the type of business you’re running. For example, if you’re planning on employing employees or conducting banking activities in another state, you’ll need to file for a Foreign Qualification and a Certificate of Authority.

If you’re just starting out, you may be surprised at just how much it can cost to maintain your LLC in Maryland. You’ll also have to pay special taxes and license costs, which can add up very quickly. It is possible to save money on these costs by completing the process yourself. One thing you should keep in mind is that your LLC name must be memorable and unique. This is important both for legal purposes and to set yourself apart from your competitors.

One of the most important parts of LLC operation is the registered agent. This person receives legal documents on behalf of the LLC and must have a physical address in Maryland. Depending on the person you choose, the registered agent fee can range from $100 to $300 a year.

There are also several fees to consider, such as the Articles of Organization filing fee and the Annual Report fee. Failure to pay these fees can result in a dissolution of your LLC and hefty fines. Although you can avoid these fees entirely, it is better to plan for them ahead of time than to pay more than you need to. If you’re unsure of how much an LLC formation service will cost, contact an affordable business formation service to help you get started. The registered agent service they offer may be a valuable tool to help you make the right financial decisions.

Once you’ve filed your initial paperwork and set up your LLC in Maryland, you’ll need to file a Form 1 Annual Report with the Secretary of State’s office. This report covers a variety of topics, including your business’s operations and the rights and responsibilities of its members.

If you plan to hire employees or conduct business transactions, you’ll also need to obtain a Federal Employer Identification Number or EIN, which is the business’s federal tax identification number. This number is required for all business transactions, including bank accounts and payroll services. Without an EIN, your company won’t be able to employ employees or accept payments from customers.

In addition to the fees mentioned above, you’ll also need to file your LLC’s articles of organization with the SDAT (the state department responsible for filing them). These documents must contain basic information about your LLC, such as the business’ name, address, and email address.

In Maryland, the initial fees for filing the Articles of Organization are between $100 and $300. However, if you decide to hire an attorney to draft the LLC operating agreement, the cost could go up to $500. However, these costs don’t include additional fees for foreign LLC registration and Form 1 Annual Report.

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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