Maryland LLC Taxes & Fees 2026: Complete Cost Guide
Quick Answer
In Maryland, forming an LLC costs $100 with the State Department of Assessments and Taxation (SDAT). After formation, Maryland LLCs must file an Annual Report (technically the Annual Report/Personal Property Return) by April 15 each year. The filing fee is $300. If you file late, SDAT assesses a $100 penalty. Maryland does not have a franchise tax on LLCs, but LLC members may owe Maryland state income tax (up to 5.75%) plus county income tax (2.25%–3.20%) on their share of LLC income.
Key Takeaways
- $100 Maryland LLC formation fee (Articles of Organization)
- $300 Annual Report filing fee (due April 15 each year)
- Late Annual Report filing incurs a $100 penalty
- Foreign LLC registration fee: $100
- No Maryland franchise tax on LLCs
- Members pay Maryland state income tax (up to 5.75%) plus county income tax
| Item | Cost/Details | Notes |
|---|---|---|
| Articles of Organization (SDAT) | $100 | One-time formation fee |
| Annual Report / Personal Property Return | $300 | Due April 15 each year |
| Late Penalty (Annual Report) | $100 | If filed after April 15 |
| Foreign LLC Registration (SDAT) | $100 | To operate in Maryland as an out-of-state LLC |
| Registered Agent Service (optional) | $100–$300/yr | Market rate if you hire a service |
| Expedited Processing (optional) | $50–$475 | Same-day or 7-day expedited available |
Maryland LLC Formation Fee
To form a Maryland LLC, you file Articles of Organization with the State Department of Assessments and Taxation (SDAT). The state filing fee is $100.
You can file online through SDAT's Maryland Business Express portal, which is the fastest option. Standard processing takes about 7–10 business days. If you need faster turnaround, SDAT offers expedited processing — same-day service costs more but can be worth it if you have a time-sensitive deadline like a contract signing or bank account opening.
The Articles of Organization must include your LLC's name (which must contain "LLC," "L.L.C.," or "Limited Liability Company"), the purpose of the LLC, the name and address of your registered agent, and the principal office address.
Annual Report Fee (Ongoing Cost)
Maryland LLCs must file an Annual Report (technically the Annual Report / Personal Property Return) each year. The filing fee is $300, and the deadline is April 15 — the same date as federal tax day.
Important: Same Deadline for All Maryland LLCs
Unlike many states that use the LLC's formation anniversary, Maryland uses a fixed April 15 deadline for all LLCs. This makes it easier to remember, but also means you cannot push the deadline back by choosing a different formation month.
The Annual Report updates your business information on file with SDAT — including your principal office address, registered agent, and the names of managers or members who manage the LLC. Even if nothing changed, you still must file and pay the $300 fee.
If SDAT doesn't receive your filing by April 15, you'll face a $100 late penalty. Continued non-filing can result in your LLC losing its good standing and eventually being forfeited.
Registered Agent Cost
Maryland requires every LLC to maintain a resident agent (Maryland's term for registered agent) with a physical Maryland address. If you hire a commercial registered agent service, typical pricing is $100–$300 per year.
If you qualify and choose to serve as your own resident agent, you can reduce recurring costs — but your home address becomes part of the public record filed with SDAT. Many business owners prefer to hire a service for privacy and reliability.
Maryland Taxes for LLCs
Maryland does not have a standalone "LLC franchise tax." However, your Maryland tax obligations can be significant because of the state's layered income tax structure:
- State income tax: Maryland's personal income tax ranges from 2% to 5.75% depending on income level.
- County income tax: Every Maryland county (and Baltimore City) imposes an additional local income tax ranging from 2.25% to 3.20%. This is on top of the state rate.
- Pass-through entity tax election: Maryland offers an optional pass-through entity (PTE) tax election, allowing the LLC to pay state tax at the entity level. This can provide federal tax benefits for members in some situations.
Federal Tax Classification Matters
How your LLC is taxed federally determines your Maryland filing requirements. A single-member LLC (disregarded entity) files on the owner's Maryland return. A multi-member LLC (partnership) files a Maryland Form 510. An LLC electing corporate taxation files Maryland Form 500.
If your business sells taxable goods or services in Maryland, you'll also need to register for Maryland sales and use tax (currently 6%). Because Maryland's tax landscape includes both state and county layers, it's worth confirming your complete filing obligations with a CPA.
Foreign LLC Registration Fee
If your LLC was formed in another state but you will be doing business in Maryland, you need to register as a foreign LLC with SDAT. The filing fee is $100 — the same as domestic formation.
After registration, you'll also be subject to the same $300 Annual Report requirement due April 15 each year, plus you'll need a Maryland resident agent.
Typical Total Cost (Year 1 vs Ongoing)
Year 1 (Typical)
- $100 — formation filing fee
- $0–$300 — registered agent (optional service)
- $300 — Annual Report (if formed before April 15)
- $50–$475 — expedited processing (optional)
Ongoing (Each Year)
- $300 — Annual Report (due April 15)
- $0–$300 — registered agent (if hired)
- Varies — Maryland state + county income taxes
Maryland's $300 annual report fee is higher than many states, so factor this into your ongoing cost planning. Combined with the state and county income tax burden, Maryland is a moderate-cost state for LLC maintenance — not the cheapest, but competitive for the Mid-Atlantic region.
Frequently Asked Questions
How much does it cost to form an LLC in Maryland?
Does Maryland require an annual report for LLCs?
When is the Maryland LLC annual report due?
What happens if I file the Maryland annual report late?
Does Maryland have a franchise tax for LLCs?
Official Source
For the most up-to-date information, always verify requirements with the official Maryland Secretary of State website:
https://dat.maryland.govImportant Disclaimer
This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.
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