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

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.

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 15^th 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

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 cost of forming an LLC in Maryland can vary depending on the services you choose to help you with the process. However, once your LLC is established, you will need to budget for ongoing costs to keep your business in good standing with the state.

One of the main expenses associated with maintaining an LLC in Maryland is the annual report filing fee. Each year, LLCs are required to file an annual report with the Maryland Department of Assessments and Taxation and pay a fee to keep their business in compliance. While the fee is not exorbitant, it is important to budget for this expense each year to ensure that your LLC remains in good standing.

In addition to the annual report filing fee, LLCs in Maryland are also required to pay a minimum tax each year. The minimum tax amount is determined by the amount of revenue generated by the LLC in the previous year. While this tax is not a huge expense for many small businesses, it is still an additional cost that needs to be factored into your budget.

Another cost to consider when maintaining an LLC in Maryland is the cost of any required business licenses or permits. Depending on the nature of your business, you may need to obtain certain licenses or permits to operate legally in the state. These costs can vary depending on the type of business you have, so it’s important to research what is required for your specific industry.

Beyond the annual fees and taxes, it’s also important to consider other potential costs associated with maintaining an LLC in Maryland. For example, you may need to hire an accountant to help with your taxes or a lawyer to handle any legal matters that arise. These professional services can add up over time, so it’s important to budget for them accordingly.

While the costs of maintaining an LLC in Maryland can add up, it’s important to remember that having a legal entity for your business offers many benefits. An LLC provides limited liability protection for its owners, meaning that their personal assets are generally protected from business debts and liabilities. Additionally, an LLC can offer tax advantages and flexibility in how the business is structured.

Overall, while maintaining an LLC in Maryland does come with costs, the benefits often outweigh the expenses. By budgeting appropriately for the annual fees, taxes, and other potential costs associated with running an LLC, you can ensure that your business remains in good standing and continues to thrive.

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.