How to Form an LLC in Maryland (2026)
Reviewed by DocDraft Legal Team · Maryland · Last updated 2026-08-06
A limited liability company (LLC) is a business structure that legally separates the company from the people who own it, so the owners are generally not personally responsible for the company's debts. Forming one in Maryland means filing a formation document with a state agency and paying its fee to bring the company into legal existence. In Maryland you create an LLC by filing the Articles of Organization with the Maryland State Department of Assessments and Taxation, known as SDAT, and paying a $100 filing fee. Two features set Maryland apart from the states that route filings through a Secretary of State. First, the filing office is SDAT, the same agency that handles property assessment and business taxes, not a Secretary of State. Second, every Maryland LLC must file an annual report with SDAT each year for a $300 fee, one of the higher recurring report fees in the country, though Maryland charges no separate franchise tax on the LLC. Maryland LLCs are governed by the Maryland Limited Liability Company Act in the Corporations and Associations Article, Title 4A. This guide explains what an LLC is, the exact Maryland steps and fees, and the deadlines that keep the company in good standing.
Find out where you stand in Maryland
Where are you in forming your LLC?
DocDraft provides document preparation, not legal advice.
How do you form an LLC in Maryland?
File the Articles of Organization with the Maryland State Department of Assessments and Taxation, known as SDAT, and pay the $100 filing fee. You must name a resident agent with a Maryland street address who can accept legal papers. Once SDAT accepts the filing, the LLC legally exists and can begin operating.
Does Maryland have an LLC franchise tax?
No. Maryland does not impose a separate franchise tax on limited liability companies. The main recurring state obligation is the annual report filed with SDAT each year, which carries a $300 fee. Maryland LLCs still owe applicable federal and state income taxes, and members report business income on their own returns under pass-through rules.
Does a Maryland LLC have to file an annual report?
Yes. Every Maryland LLC must file an annual report with the State Department of Assessments and Taxation each year, and the fee is $300. The report keeps the company in good standing and updates the state's records. An LLC that holds personal property or an operating business may also owe a personal property return with the same filing.
Does Maryland require newspaper publication to form an LLC?
No. Maryland does not require an LLC to publish notice of its formation in a newspaper. This is unlike New York, Arizona, and Nebraska, where publication is a condition of forming or operating. In Maryland the Articles of Organization filing with SDAT and the yearly annual report are the core state steps, with no publication requirement.
Maryland LLC formation at a glance
You form a Maryland LLC by filing the Articles of Organization with the Maryland State Department of Assessments and Taxation, known as SDAT, for a $100 filing fee. Maryland is one of the states that files business formations through a tax and assessment agency rather than a Secretary of State, so SDAT is the office you deal with for both formation and ongoing reports. What shapes the real cost of running a Maryland LLC is the annual report. Every Maryland LLC must file it with SDAT each year for a $300 fee, one of the higher recurring report fees among the states, and it keeps the company in good standing. Maryland does not charge a separate franchise tax on the LLC itself. Every LLC must name and maintain a resident agent with a physical Maryland street address to receive lawsuits and official notices. Maryland does not require newspaper publication. Standard processing of a Maryland formation filing runs about 6 to 8 weeks unless you pay for expedited service. The governing statute is the Maryland Limited Liability Company Act, Corporations and Associations Article, Title 4A.
Forming a two-owner Maryland LLC, step by step
Suppose two friends in Baltimore want to open a small design studio as an LLC. First they search SDAT's business entity records through Maryland Business Express to confirm their name is available and includes a designator such as LLC, and they can reserve the name with SDAT for a $25 fee while they prepare paperwork. Next they appoint a resident agent: one owner lives in Maryland and agrees to serve, using a Maryland street address, not a P.O. box, where legal papers can be delivered. They then file the Articles of Organization with SDAT and pay the $100 filing fee, keeping in mind that standard processing runs about 6 to 8 weeks unless they pay for expedited service. The LLC legally exists once SDAT accepts the filing. Because they have two members, they also write an operating agreement setting each owner's percentage and how profits split, even though Maryland does not require them to file it. They apply to the IRS for a free EIN so the partnership can file taxes and open a bank account. Finally they calendar the annual report, which every Maryland LLC files with SDAT each year for a $300 fee, and note that if the studio owns equipment they may also file a personal property return with it. Maryland charges no separate franchise tax on the LLC, so the annual report is the main recurring state cost.
Relevant Laws
Maryland Limited Liability Company Act (Corps. & Ass'ns Article, Title 4A)
The Maryland LLC Act governs the formation, management, and dissolution of every Maryland LLC. It sets who may form an LLC, the required contents of the Articles of Organization, the resident agent requirement, and the default rules for how the company is managed by its members. It is codified in the Corporations and Associations Article of the Maryland Code, Title 4A.
Corps. & Ass'ns § 4A-202 (Articles of Organization)
Requires a Maryland LLC to be formed by filing Articles of Organization with the State Department of Assessments and Taxation. The articles state the LLC's name, the address of its principal office in Maryland, and the name and address of its resident agent. The filing fee for the Articles of Organization is $100.
Corps. & Ass'ns § 4A-210 (Resident agent)
Requires every Maryland LLC to continuously maintain a resident agent in Maryland. The agent, an individual Maryland resident or a Maryland business entity authorized to act, receives service of process and official notices for the company. The resident agent's Maryland address goes on the Articles of Organization and must be kept current with SDAT.
Maryland annual report (filed with SDAT)
Requires every Maryland LLC to file an annual report with the State Department of Assessments and Taxation each year to remain in good standing. The report fee is $300. An LLC that owns or uses personal property in an operating business files a personal property return together with the report. Missing the filing can lead SDAT to forfeit the LLC's right to do business.
SDAT as the filing and assessment office
Maryland routes business formation and annual reporting through the State Department of Assessments and Taxation rather than a Secretary of State. SDAT accepts the Articles of Organization, maintains the entity record, collects the annual report and any personal property return, and issues certificates of good standing. Filings can be made through the Maryland Business Express portal.
IRS federal tax classification (default pass-through)
The IRS does not tax the LLC as a separate category. By default a single-member Maryland LLC is disregarded and taxed like a sole proprietorship, and a multi-member LLC is taxed as a partnership, with income passing through to the owners. An LLC may instead elect S corporation or C corporation treatment. This federal classification is separate from Maryland's state filing and reporting requirements.
Regional Variances
How forming an LLC in Maryland differs from other states
SDAT is the filing office, not a Secretary of State
Maryland files LLC formations through the State Department of Assessments and Taxation, the agency that also handles property assessment and business taxes. Most states route formations through a Secretary of State or a Division of Corporations. The practical effect is that formation and yearly reporting live with the same tax agency in Maryland.
A $300 annual report every year
Every Maryland LLC files an annual report with SDAT each year for a $300 fee, one of the higher recurring report fees among the states. Many states charge a much smaller annual or biennial report fee. Forgetting this filing is the easiest way for a Maryland LLC to lose its good standing.
No separate franchise tax on the LLC
Maryland does not impose a franchise tax on limited liability companies. States such as California charge a minimum annual franchise tax regardless of income, while Maryland's main recurring state cost is the $300 annual report. Members still owe income tax on business earnings under pass-through rules.
Longer standard processing time
Standard processing of a Maryland formation filing runs about 6 to 8 weeks, slower than states that process online filings in a day or two. Maryland offers expedited service for an added fee if you need the LLC formed sooner. Plan the timeline before you file, especially if a bank account or contract depends on the date.
No newspaper publication requirement
Maryland does not require you to publish notice of formation in a newspaper. New York, Arizona, and Nebraska do, which adds cost and a deadline. A Maryland LLC is complete once SDAT accepts the Articles of Organization, with no publication step to complete afterward.
Suggested Compliance Checklist
Confirm your LLC name is available and compliant
Before filing days after startingSearch SDAT's business entity records through Maryland Business Express to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with SDAT for a $25 fee while you prepare your Articles of Organization.
Appoint a resident agent
Before filing days after startingMaryland requires a resident agent with a physical Maryland street address who can accept legal documents. Decide whether you, a co-owner who lives in Maryland, or a commercial resident agent service will serve. You will name the agent on the Articles of Organization, so settle this first and confirm the agent agrees to act.
File the Articles of Organization with SDAT
To create the LLC days after startingFile the Articles of Organization with the Maryland State Department of Assessments and Taxation and pay the $100 filing fee, using the Maryland Business Express portal or by mail. Standard processing runs about 6 to 8 weeks unless you pay for expedited service. The LLC legally exists only once SDAT accepts it, so keep the confirmation as proof of formation.
Adopt an operating agreement
At or soon after formation days after startingPut the ownership percentages, profit split, management structure, and exit rules in writing. Maryland's LLC act allows members to govern the company by an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft.
Get a federal EIN from the IRS
Before opening a bank account or hiring days after startingApply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate.
File the annual report with SDAT each year
Annually days after startingEvery Maryland LLC files an annual report with SDAT each year to stay in good standing, and the fee is $300. If your LLC owns or uses personal property in an operating business, file the personal property return with it. Missing the report can lead SDAT to forfeit the LLC's right to do business, so calendar the deadline the year you form.
Register for Maryland business taxes if needed
Before making taxable sales or hiring days after startingMaryland charges no separate franchise tax on the LLC, but you may still need to register with the Comptroller of Maryland for sales and use tax, employer withholding, or other business taxes depending on what the LLC does. Confirm which registrations apply before you start selling or paying employees.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm your LLC name is available and compliant | Search SDAT's business entity records through Maryland Business Express to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with SDAT for a $25 fee while you prepare your Articles of Organization. | - | Before filing |
| Appoint a resident agent | Maryland requires a resident agent with a physical Maryland street address who can accept legal documents. Decide whether you, a co-owner who lives in Maryland, or a commercial resident agent service will serve. You will name the agent on the Articles of Organization, so settle this first and confirm the agent agrees to act. | - | Before filing |
| File the Articles of Organization with SDAT | File the Articles of Organization with the Maryland State Department of Assessments and Taxation and pay the $100 filing fee, using the Maryland Business Express portal or by mail. Standard processing runs about 6 to 8 weeks unless you pay for expedited service. The LLC legally exists only once SDAT accepts it, so keep the confirmation as proof of formation. | - | To create the LLC |
| Adopt an operating agreement | Put the ownership percentages, profit split, management structure, and exit rules in writing. Maryland's LLC act allows members to govern the company by an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft. | llc-operating-agreement | At or soon after formation |
| Get a federal EIN from the IRS | Apply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate. | - | Before opening a bank account or hiring |
| File the annual report with SDAT each year | Every Maryland LLC files an annual report with SDAT each year to stay in good standing, and the fee is $300. If your LLC owns or uses personal property in an operating business, file the personal property return with it. Missing the report can lead SDAT to forfeit the LLC's right to do business, so calendar the deadline the year you form. | - | Annually |
| Register for Maryland business taxes if needed | Maryland charges no separate franchise tax on the LLC, but you may still need to register with the Comptroller of Maryland for sales and use tax, employer withholding, or other business taxes depending on what the LLC does. Confirm which registrations apply before you start selling or paying employees. | - | Before making taxable sales or hiring |
Frequently Asked Questions
An LLC, or limited liability company, is a business structure that separates the company from its owners as a matter of law. The owners, called members, are generally not personally liable for the company's debts or lawsuits, so a creditor usually cannot reach a member's home or personal savings for a business obligation. In Maryland, LLCs are created under the Maryland Limited Liability Company Act in the Corporations and Associations Article, Title 4A. It pairs that liability shield with pass-through taxation and lighter paperwork than a corporation.
You start a Maryland LLC by filing the Articles of Organization and paying a $100 filing fee. The form lists the LLC's name, its principal Maryland office, and its resident agent. The company legally exists only once the state accepts the filing, not when you submit it. You can file through the Maryland Business Express portal or by mail, and you should keep the acceptance confirmation as proof of formation.
Maryland routes business formations through the State Department of Assessments and Taxation, known as SDAT, the same agency that handles property assessment and business taxes. Most states file LLCs through a Secretary of State or Division of Corporations. In practice this means formation and yearly reporting live with one tax agency in Maryland. SDAT accepts your Articles of Organization, keeps the entity record, and issues certificates of good standing.
The Maryland annual report is $300, one of the higher recurring report fees in the country, and every LLC files it with SDAT each year to stay in good standing. It is generally due by April 15 following the year the LLC was formed and every year after. Missing it can lead SDAT to forfeit the company's right to do business, so calendar the deadline the year you form. Verify the current due date with SDAT.
Maybe. If your LLC owns or uses personal property, such as equipment, furniture, or inventory, in an operating business, Maryland requires you to file a personal property return together with the annual report to SDAT. An LLC that holds no business personal property generally files just the report. Because the rules turn on what the company owns and does, confirm your situation with SDAT, and attorney review is available if you want a second look.
Yes. Maryland lets you reserve an available business name with SDAT for a $25 fee while you prepare your Articles of Organization, which holds the name so another filer cannot take it first. Reservation is optional, not a required step to form. Before reserving, search SDAT's entity records through Maryland Business Express to confirm the name is free and includes a designator such as LLC or Limited Liability Company.
Other Maryland guides
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