To start an LLC in Maryland, you file Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT), usually online through Maryland Business Express, and pay a $100 filing fee. After that, every Maryland LLC files an Annual Report with a $300 fee by April 15 each year, so budget for it from day one.
Below are the steps in order, with the official source for every fee and rule, plus the free Maryland programs (including TEDCO and the Maryland SBDC) that help founders get funded and grow.
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Maryland LLC costs at a glance
Photo by w_lemay via flickr (public domain)
| Item | Cost | When | Source |
|---|---|---|---|
| Articles of Organization | $100 | Once, at formation | Corps. & Ass'ns § 1-203 |
| Expedited processing (optional) | +$50 | At filing | SDAT fee schedule |
| Name reservation (optional) | $25 for 30 days | Before filing | § 1-505 and SDAT fee schedule |
| Annual Report (Form 1) | $300 per year | April 15, starting the year after you form | SDAT 2026 Form 1 |
| Foreign LLC registration (formed in another state) | $100 | Before doing business in Maryland | SDAT foreign LLC form |
| EIN from the IRS | Free | After formation | IRS |
| Trader's or other local license | Varies | Before you sell goods or open | Clerk of the Circuit Court in your county |
The big difference from Virginia and DC is the annual cost. Maryland's $300 Annual Report fee is six times Virginia's $50 annual fee, and it is due even if your LLC had no revenue.
Step 1: Choose a name that meets Maryland rules
Your LLC name must include "Limited Liability Company," "L.L.C.," "LLC," "L.C." or "LC" (Corps. & Ass'ns § 1-502). It must be distinguishable from names already on SDAT's records, including reserved names (§ 1-504), and it cannot suggest a purpose that your articles do not cover (§ 1-503).
You can search existing names while registering on Maryland Business Express. If you need to hold a name before you file, a reservation costs $25 and lasts 30 days.
Founder tip: lock down the matching domain and social handles before you file. Changing your name later means amending your articles, your bank account and your contracts.
Step 2: Appoint a Maryland resident agent
Every Maryland LLC must have a resident agent and a principal office in Maryland (§ 4A-210). Maryland law defines a resident agent as an individual who lives in Maryland, or a Maryland corporation, LLC or limited partnership (§ 1-101).
- The agent needs a Maryland street address. A P.O. box does not work.
- The agent signs a consent to serve on the Articles of Organization.
- You can be your own resident agent if you are a Maryland resident, according to SDAT's Charter FAQ.
Founders who live in DC or Virginia and form in Maryland will need a Maryland-resident individual or a commercial resident agent company. Changing your agent later costs $25.
Step 3: File Articles of Organization with SDAT
File online through Maryland Business Express, or on paper using SDAT's Articles of Organization form. The articles must list the LLC's name, a principal office address in Maryland, and the resident agent's name and address (§ 4A-204). The filing fee is $100.
How long does it take? SDAT's May 2026 form lists 6 to 8 weeks for standard processing and 7 to 14 business days if you pay the $50 expedite fee. SDAT's older materials quote shorter times, so treat these as estimates. If you need your LLC fast, for example to sign a lease or open a bank account, pay to expedite. SDAT's fee schedule also lists faster same-day options at a higher price.
Already have an LLC in another state? Register it in Maryland as a foreign LLC for $100. You will need proof of existence from your home state issued within the last 60 days and a Maryland resident agent. Doing business in Maryland before registering can bring a $200 penalty (SDAT foreign LLC form).
Step 4: Sign an operating agreement
You do not file an operating agreement with SDAT, and Maryland law does not force you to adopt one. Under § 4A-402, members may enter into an operating agreement, and a single-member LLC's agreement is expressly enforceable.
Write one anyway. It sets ownership splits, voting, how profits are paid out, co-founder vesting and what happens if someone leaves. Banks, investors and TEDCO-style funding programs will expect your company records to be in order.
Step 5: Get a free EIN from the IRS
Apply online at IRS.gov. The IRS says you never have to pay for an EIN, and the online application issues your number immediately once you finish it in one session. You need the EIN to open a business bank account, hire and register for Maryland taxes.
Step 6: Register for Maryland taxes and employer accounts
Maryland lets you set up several state accounts in one place. The Comptroller of Maryland handles registration for sales and use tax and employer income tax withholding, and now directs new businesses to its Maryland Tax Connect portal. The Comptroller's Combined Registration Application covers sales and use tax, withholding and unemployment insurance together; allow about two weeks for processing.
- Unemployment insurance: employers register and manage accounts through the Maryland Department of Labor's BEACON employer portal.
- FAMLI: the Maryland Department of Labor says employers with one or more employees in Maryland must register for the Family and Medical Leave Insurance program, with contribution withholding starting January 1, 2027.
Step 7: Get the right local licenses
Maryland Business Express notes that almost all businesses need some kind of license, and you need a trader's license if you buy goods and resell them. Trader's licenses are issued by the Clerk of the Circuit Court in your county. As one example, the Calvert County Clerk's FAQ explains that the license year runs May 1 to April 30, fees are based on your average inventory, and you need your SDAT registration and a sales tax account first.
In Montgomery County, apply through the Circuit Court License Department, as explained on the county's business license page. Professional services, food businesses and contractors usually need additional state or county permits.
Step 8: File your Annual Report every April 15
Every Maryland LLC files an Annual Report (Form 1) with SDAT by April 15, beginning the year after it forms. The fee is $300 (2026 Form 1). The report is required even if your LLC had no revenue or activity (Maryland Business Express).
- Late filing: SDAT charges a penalty tied to your county assessment, plus interest for each month late.
- Not filing: your LLC can be forfeited, and a forfeited business cannot legally operate in Maryland.
- Extension: SDAT offers a two-month extension (to June 15 for 2026) that you request online.
- Fee waiver: businesses approved through MarylandSaves may qualify to have the annual filing fee waived, per the 2026 Form 1 instructions.
What about beneficial ownership (BOI) reports? Not for U.S. companies. In August 2026, FinCEN finalized a rule that permanently removes the reporting requirement for companies created in the United States. Only foreign reporting companies still file.
Funding and free help for Maryland founders
Maryland has a deep bench of state-backed startup programs. These organizations are listed in the StartDMV directory:
- TEDCO: Maryland's early-stage tech investor. Programs include the Maryland Innovation Initiative for university spinouts, Concept Capital ($25,000 to $50,000 zero-interest convertible notes for eligible early-stage founders) and the Pre-Seed Builder Fund.
- Maryland SBDC: free one-on-one consulting and low-cost training, hosted by the University of Maryland with regional offices statewide.
- Maryland Department of Commerce: incentives, capital access programs and a network of business incubators.
- Maryland Tech Council: the state's tech and life sciences member network.
- Dingman-Lamone Center for Entrepreneurship (UMD): advising, pitch competitions and an angel network for UMD founders.
- SBA Washington Metropolitan Area District Office: SBA loans and counseling for Montgomery and Prince George's counties.
Official agencies you will deal with
- Maryland SDAT (formation and Annual Report)
- Comptroller of Maryland (sales tax and withholding)
- Maryland Department of Labor (unemployment insurance and FAMLI)
County economic development offices
- Montgomery County Economic Development Corporation
- Baltimore Development Corporation
- Anne Arundel Economic Development Corporation
- Frederick County Office of Economic Development
See the full StartDMV directory for more investors, accelerators and service providers.
Maryland founder events coming up
Once your LLC is formed, get in the room with investors and other founders. Upcoming picks from the StartDMV events calendar:
- The Great Pumpkin Pitch (October 15, Columbia): five Maryland startups pitch for $10,000+ in prizes
- Cyber Howard Challenge Pitch (October 20, Columbia, free)
- TEDCO's 2026 Entrepreneur Expo (October 27, Baltimore)
- Startup Social at Spark Coworking (November 12, Baltimore)
Maryland LLC checklist
- Pick a name with "LLC" or another approved ending and check availability
- Choose a Maryland resident agent with a street address
- File Articles of Organization with SDAT ($100, or $150 expedited)
- Sign a written operating agreement
- Get a free EIN from the IRS
- Open a business bank account
- Register with the Comptroller for sales tax and withholding if needed
- Register with the Department of Labor when you hire
- Get your trader's license or other local licenses
- File your $300 Annual Report by April 15 every year
This guide is general information, not legal or tax advice. Talk with a Maryland attorney or CPA about your situation.
Get the weekly list of DMV startup events, grants and deadlines. Join the StartDMV list at https://startdmv.org.