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


Steve Goldstein
Steve Goldstein
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Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing 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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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

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.

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 first costs to consider when forming an LLC in Maryland is the filing fee. The Maryland Department of Assessments and Taxation charges a fee to file Articles of Organization, the legal document that officially creates the LLC. This initial fee can vary depending on the business structure and type of LLC being formed.

In addition to the filing fee, Maryland LLCs are required to pay an annual report fee to the Department of Assessments and Taxation. This report is used to update the state on any changes to the business, such as ownership or address changes. Failure to file the annual report on time can result in late fees and penalties.

Another cost to consider when operating an LLC in Maryland is the cost of a Registered Agent. A Registered Agent is a designated individual or entity responsible for receiving legal documents and government notices on behalf of the LLC. While business owners can act as their Registered Agent, many choose to hire a professional service to handle this responsibility for a fee.

Maintaining compliance with state and federal regulations is also an ongoing cost to consider when operating an LLC in Maryland. This includes filing taxes, obtaining licenses and permits, and adhering to any industry-specific regulations. Ensuring compliance can help protect the LLC from legal issues and financial penalties down the road.

In addition to the costs mentioned above, there may be additional expenses associated with operating an LLC in Maryland, such as professional fees for legal or accounting services. These services can help business owners navigate the complex legal and financial requirements of operating an LLC and ensure the business remains in good standing with the state.

While the costs of maintaining an LLC in Maryland may seem daunting, it’s important to remember that these expenses are an investment in the long-term success of the business. By understanding and budgeting for these costs upfront, business owners can avoid potential financial setbacks and focus on growing their LLC.

In conclusion, the costs of maintaining an LLC in Maryland can vary depending on several factors, such as the type of business and compliance requirements. By properly budgeting for these expenses and staying informed about state regulations, business owners can set their LLC up for success and avoid potential legal and financial issues in the future.

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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