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.
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 major costs associated with maintaining an LLC in Maryland is the annual filing fee. Each year, LLCs are required to file a Personal Property Return, also known as Form 1, with the Maryland Department of Assessments and Taxation. This involves reporting the value of the LLC’s tangible personal property and paying a corresponding fee. The amount of the fee is based on the total value of the LLC’s assets, and failure to file on time can result in late fees and penalties.
In addition to the annual filing fee, LLCs in Maryland are also required to pay an annual report fee. This fee is due every year on April 15th and is necessary to update the state on the LLC’s current contact information and registered agent. Failing to file the annual report can lead to the LLC being declared noncompliant and, ultimately, administratively dissolved by the state.
Another cost associated with maintaining an LLC in Maryland is the requirement to have a registered agent. A registered agent is an individual or company designated to receive legal documents and government correspondence on behalf of the LLC. While business owners can serve as their own registered agent, many prefer to hire a professional service to ensure that important documents are properly handled and received in a timely manner. This service usually comes with an additional annual fee.
Beyond these mandatory expenses, LLCs in Maryland may also incur other costs such as professional fees for legal or tax advice, business insurance premiums, consulting fees, or any other services needed to manage and grow the business. These costs can vary widely depending on the nature and size of the LLC.
Overall, the cost of maintaining an LLC in Maryland is manageable for most business owners, especially considering the liability protection and flexibility that this business structure provides. However, it is important for entrepreneurs to budget for these ongoing expenses and stay current with their annual filings to avoid any potential penalties or legal consequences.
In conclusion, while there are expenses associated with maintaining an LLC in Maryland, the benefits of this business structure often outweigh the costs. By understanding the financial obligations and planning accordingly, business owners can ensure that their LLC remains in compliance with state regulations and continues to operate successfully.
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.