Maryland LLC Costs 2026: $100 to Form + $300/yr

Annual Report Fee (Ongoing Cost)

Maryland LLCs must file an Annual Report (SDAT Form 1) each year. The filing fee is $300, and the deadline is April 15 — the same date as federal tax day. LLCs that own, lease, or use personal property in Maryland, or hold a trader's license, also complete the Business Personal Property Return portion of the same form.

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, the late penalty is graduated, not a flat fee: one-tenth of one percent of your LLC's assessed Maryland property value, plus 2% interest on that penalty for each 30 days (or part of 30 days) the report is overdue. An LLC with little or no Maryland property pays a small penalty, but the bigger risk is that continued non-filing costs your LLC its good standing and can lead to forfeiture.

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. See our guide to being your own Maryland resident agent to weigh the trade-offs.

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 runs from 2% up to 6.5%. The 2025 legislative session added two new top brackets — 6.25% and 6.5% — that took effect for the 2025 tax year (returns filed in 2026), so the old 5.75% top rate is out of date.
• 2% capital gains surtax: Maryland now adds a 2% surtax on net capital gains for filers with federal adjusted gross income above $350,000 (primary-residence and retirement gains are exempt).
• County income tax: Every Maryland county (and Baltimore City) imposes an additional local income tax ranging from 2.25% to 3.30%. This stacks on top of the state rate.
• Pass-through entity tax election: Maryland offers an optional pass-through entity (PTE) tax election, letting the LLC pay state tax at the entity level (8% for individual members, 8.25% for entity members). This can provide federal tax benefits for members in some situations.

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. Our Maryland foreign LLC registration guide walks through the SDAT filing and the certificate of good standing you'll need from your home state.

Typical Total Cost (Year 1 vs Ongoing)

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. Once your LLC is formed, lock in the April 15 deadline and your resident agent details using the Maryland compliance checklist, and confirm your filing requirements with the resident agent rules before your first report comes due.