Updated on: August 13th, 2022

Price to Form LLC in Maryland: Various Fees Revealed for Maryland LLC

Start a Maryland LLC With Professional Help For The Best Price

This is an exciting time for your business if you’ve decided to register a limited liability corporation (LLC) in Maryland. The main cost of forming an LLC in Maryland is $100. When submitting the LLC’s Articles of Organization, this charge is paid to the Maryland Department of Assessments and Taxation.

You’re almost certainly ready to form your LLC and start the business of your dreams! However, before you get started, you should be aware of all of the fees and other costs associated with incorporating a Maryland LLC.

Most business owners are aware that they will have to pay a fee to the state in order to register their LLCs. However, we’ve found that some customers aren’t aware of all the possible extra costs, such as LLC formation fees, registered agent fees, Annual Report fees, taxes, and so on. Let’s take a closer look at all of the probable costs associated with founding a Maryland LLC.

If you want to skip the hassle of starting a Maryland LLC yourself, consider using professional help for the best price in the market:

Forming LLC in Maryland: Various Costs and Fees

DescriptionFee
Fee for Forming a Maryland LLC Online With the State$100
Annual Report Fee in Maryland$300
Fee for Registered Agent$0-$39 on its 1st yr.
Cost in Maryland to Form a Foreign LLC$100
Reservation of Maryland LLC Name$25
Maryland LLC Name Re-Reservation$25
Doing Business As (DBA) Name$25
Certified Document Copies$20 + $1/pg.
Certificate of Good Standing$20

$100 – Fee for Forming a Maryland LLC Online

The $100 charge to submit your LLC’s Articles of Organization online with the Maryland Department of Assessments and Taxation is the most expensive aspect of incorporating an LLC.

$300 – Annual Report Fee in Maryland

The Secretary of State in Maryland requires LLCs to file an annual report and pay a franchise tax. This form can be submitted via the Maryland Business Express website. The deadline is April 15th. Every 30 days when the return is late, Maryland assesses a penalty of 1/10 of 1% of the county assessment, plus 2% interest.

$39 on its 1st yr. – Fee for Registered Agent

You may be your own registered agent in Maryland but choosing a registered agent service keeps your firm in compliance and reminds you of critical filing dates, so you don’t have to pay late fines.

Registered agent fees start at $39 USD for the first year. We propose that you use:

  • ZenBusiness provides the right solution for establishing a new company and becoming a registered agent: OR: $39 plus state fees
  • If you only require a registered agent, ZenBusiness provides an excellent service: $99

$100 – Cost in Maryland to Form a Foreign LLC

If you currently have an LLC established in another state and want to extend your business into Maryland, you’ll need to register it as a foreign LLC.

The cost of forming a foreign LLC in Maryland is $100. In Maryland, you can establish a foreign LLC by filling out a Foreign Limited Liability Company Registration form and submitting it online, by mail, or in person.

Permits and Licenses for Businesses

Your business may require federal, state, and municipal permits/licenses to lawfully operate in Maryland, depending on your industry and geographic area. This is true whether you create an LLC or any other sort of business entity.

Total Costs for Maryland LLC Breakdown & Best Options

Who forms the LLC?Total fees
You form the LLC in Maryland yourself$145+ ($100+ Filing Fee + $25 LLC Name +$20 Certificate of Good Standing)
by using ZenBusiness$49+
by using Northwest Registered Agent$39/mo
see our other top-rated LLC service providersvaries

Other Fees for Forming a Maryland LLC

There are a few extra costs involved with forming an LLC:

$25 – Reservation of Maryland LLC Name

By completing a Corporate Name Reservation Application and paying the $25 filing fee, you can reserve your name for up to 30 days prior to the establishment of your LLC.

$25 – Maryland LLC Name Re-Reservation

To reserve your name for another 30 days, file a Corporate Name Reservation Application for Re-Reservation and pay the $25 filing fee.

$25 – Doing Business As (DBA) Name

To create a name other than your official LLC business name, fill out a Trade Name Application online and pay the $25 filing fee. This can also be done in person or by mail.

$20 + $1/pg. – Certified Document Copies

Order certified copies of your Maryland business documents for $20 + $1 per page from the Department of Assessments and Taxation.

$20 – Certificate of Good Standing

This document, also known as a Maryland certificate of good standing, can be obtained by placing an order with the Department of Assessments and Taxation and paying a $20 charge. Banks and lending institutions frequently demand a certificate of status.


How to Form a Maryland LLC on Your Own?

Here’s our full guide on Maryland LLC formation

Maryland LLC – The Articles of Organization must be filed with the Maryland Department of Assessments and Taxation for a fee of $100 to incorporate a Maryland LLC. You can submit your application online, by mail, or in person. The Maryland Limited Liability Company’s Articles of Organization are the legal documents that establish the company. In Maryland, there are five basic steps to forming an LLC:

  • Step 1: Choose a Name for your Maryland LLC
  • Step 2: Choose a Registered Agent 
  • Step 3: File an Organization Articles
  • Step 4: Create an Operating Agreement 
  • Step 5: Obtain an Employer Identification Number 

Step 1: Choose a Name for your Maryland LLC [Price: $25]

Name-Your-LLC

Before founding a Maryland LLC, all firms should do a Maryland company name search.

In our Maryland LLC Search tutorial, we’ll teach you how to verify LLC name availability.

1. Adhere to Maryland’s naming conventions.

Before you finish your company name search, make sure your business name complies with the standards.

The first and most significant step in forming an LLC is deciding on a name. Make sure the name you chose conforms with Maryland’s naming guidelines and is easily searched by potential clients.

Make sure you stick to the following naming conventions:

  • The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
  • Your Maryland LLC’s name cannot contain any words that may be mistaken for a government organization (FBI, Treasury, State Department, etc.).
  • Restricted terms (e.g., bank, attorney, university) may necessitate additional documentation and the inclusion of a licensed professional in your Maryland LLC, such as a doctor or lawyer.

2. Conduct a business name search in Maryland.

You can check the availability of your selected name using the Maryland Business Entity Search before completing your name reservation request. Type in the name you want to use, omitting identifiers like “LLC,” for the most successful search. This will return any entities with names that are the same or similar.

If your company name is more than two words long, you may limit your search to the first two words to guarantee you find all possible comparable names.

3. Operate a domain name search to see what’s available.

Another key factor to consider when choosing a business name is whether or not the web domain name you want is available. It’s critical to have a URL that matches your company name exactly. This apparently insignificant activity can have a significant impact on how potential clients locate your company.

The simplest approach to find out if your chosen URL is accessible is to use your favourite domain registration, such as GoDaddy, to search for it online.

4. Choose a name for your Maryland business entity.

All LLC naming inquiries and requests are handled by Maryland’s Business Express. For a period of 30 days, business names can be reserved.

You must file by email or phone to reserve a company name. A filing fee will be required. Make checks payable to the “Secretary of State.”


MARYLAND APPLICATION FOR RESERVATION OF NAME

File By Email with the State of Maryland

Write to [email protected]

– OR –

File by Phone:

Call (410)-767-1802

Fee: $25 + $20 for expedited services (optional)


Do I need a DBA or a Trade Name for my company? A DBA isn’t required for most LLCs. The LLC’s name can also be used as your company’s brand name, and you can take cheques and other forms of payment under that name. If you want to do business under a different name, you might want to register a DBA.


Step 2: Choose a Registered Agent [Price: $0-$39 on its 1st yr.]

Registered-Agent

Every formal business in Maryland is required by law to have a Maryland registered agent, also known as a resident agent. A registered agent receives any official documents from the State of Maryland, as well as any service of process that may be served on a business in the course of litigation.

We’ll go over everything about what a registered agent is, what they perform, and how to choose one in our Maryland Registered Agent guide.

What is a Registered Agent in Maryland?

A Maryland registered agent is an individual or corporate organization that serves as your company’s point of contact for:

  • Receives all service of process for the business in any litigation from the State of Maryland, such as the Maryland Annual Report and certificate of good standing.
  • A registered agent is needed by law for any formal business in Maryland, such as an LLC, corporation, or partnership.

Is it possible for me to act as my own registered agent in Maryland?

Yes, any business owner or employee who is above the age of 18 and has a Maryland street address can serve as the company’s registered agent in Maryland.

You might even elect a member of your LLC, or even a trusted friend, as long as they match these standards as well.

In Maryland, how do I choose a registered agent?

When you finish your LLC’s Articles of Organization in Maryland, you’ll have to choose a registered agent. In Maryland, the Articles of Organization are the most important document for forming an LLC.

  • Choosing a Registered Agent through the Internet

Create an account with Maryland Business Express to create your LLC online ($100 filing fee is required). You may utilize their tool to walk you through the procedure or submit your own papers. If you utilize their form, you’ll be prompted to name a registered agent once you’ve completed the business name and information parts.

  • Mailing a Request for a Registered Agent

Download the Articles of Organization, fill out the appropriate information, and deliver a physical copy to the Department of Assessments and Taxation to create your LLC by mail. Section 4 will ask for the name and address of your resident agent.

Is a registered agent required in Maryland? With the exception of New York, every state in the United States requires all corporations and limited liability companies (LLCs) to have a registered agent. In various places, a registered agent may be referred to as a resident agent, a statutory agent, or an agent for service of process.

What does it mean to “serve of process”? Receiving legal documents, such as a summons, is known as the service of process. Due to a pending case, a summons is an order to appear before a court.

Is the term “registered agent” synonymous with “owner”? No. A registered agent can be a business owner, although a registered agent is not always a business owner.


Step 3: File Articles of Organization With The State of Maryland [Price: $100]

Articles-of-Organization

The Maryland Articles of Organization is the LLC formation form that you fill out and submit to the state.

We’ll walk you through the Maryland LLC Articles of Organization filing process in three simple stages.

  1. Forms for Articles of Organization
  2. Complete the Articles of Incorporation.
  3. File the Articles of Organization

Stage 1: Forms for Articles of Organization

You have the option of filing your Maryland Articles of Organization by mail or online. Choose your chosen technique for this initial step from the options below.

________

GET YOUR MARYLAND ARTICLES OF ORGANIZATION FORMS

Option 1: Create an account on the Maryland Business Express website to file your Articles of Organization. Select “Start a New Filing” and then “Register a Business” once you’ve logged in.

CREATE ACCOUNT

– OR –

Option 2: The Maryland State Department of Assessments and Taxation website has a PDF of the Articles of Organization. The Maryland State Department of Assessments and Taxation will need to receive this form.

DOWNLOAD PDF

___________

Stage 2: Complete the Articles of Incorporation

We’ll walk you through the Maryland Articles of Organization form in this phase.

To complete the form, you’ll need the following information:

  • Name and Location of the Entity
  • Name of the Registered Agent and the Address of the Registered Office
  • Purpose of Business

Name and Location of the Entity

It’s crucial to have a distinctive and clever business name, but it’s not as important as having a legally proper name.

When selecting a name for your company, be certain that the name:

  • Maryland’s name regulations are followed.
  • isn’t being used by another company in Maryland.

Check Availability of Names:

Is your given name accessible in the state of Maryland? Do a name search on the Maryland Business Express website to make sure the name you want isn’t already used.

Obtain Your Domain Name:

It’s a good idea to examine whether your company name is accessible as a web domain. Even if you don’t intend to create a company website right now, you may wish to purchase the URL to prevent others from doing so.

Name of the Registered Agent and the Address of the Registered Office

A registered agent is a person who receives and sends legal paperwork on behalf of your LLC. Your registered agent and registered office must be included when you form your Maryland LLC.

Any Maryland resident over the age of 18 can serve as your registered agent. During regular business hours, your registered agent must be present in the registered office.

Purpose of Business

Your LLC’s business purpose must be described in one to two sentences.

Keep in mind that a business goal including licensing, tax-exemption, or tax-deductible status necessitates IRS or professional license-specific terminology.

Stage 3: File the Articles of Organization

The Articles of Organization must be filed with the Department of Assessments and Taxation in order to register your LLC.

You can file your Articles of Organization in one of two ways:

  • Fill out the forms online.
  • Send or deliver a physical copy of your application via mail or in person.

FILE THE MARYLAND ARTICLES OF ORGANIZATION

Option 1: Log in to the Maryland Business Express website or create an online account. Then, on the “Register a New Business” tab, choose “Maryland Limited Liability Company.”

FILE ONLINE

– OR –

Option 2: The Maryland State Department of Assessments and Taxation website has a PDF of the Articles of Organization.

DOWNLOAD PDF

State Filing Cost: $100

Mail to: 
Department of Assessments and Taxation
301 W. Preston Street
Baltimore, MD 21201

Submit In-Person: 
Department of Assessments and Taxation
301 W. Preston Street
Baltimore, MD 21201

Turnaround Time: Online or by mail, usually takes 4 to 6 weeks, although it can be accelerated for a cost.


In Maryland, how long does it take to form an LLC? The Articles of Organization can be filed online in 5-7 days or by mail in 4 to 6 weeks. There are additional options for expedited filings.

What is the difference between a domestic and a foreign LLC? When an LLC does business in the state where it was founded, it is referred to as a “domestic LLC.” Normally, when we talk about an LLC, we’re talking about a domestic one. When an existing LLC wants to expand its operations to another state, it must incorporate a foreign LLC.


Step 4: Create an Operating Agreement [Price: FREE]

Operating-Agreement

An operating agreement should be in place for every Maryland LLC owner to secure their company’s activities. While an operating agreement is not legally needed by the state, it will create clear norms and expectations for your LLC while also establishing your legitimacy as a legal company.

What is an Operating Agreement for a Maryland LLC? An LLC’s ownership structure and running processes are outlined in an operating agreement, which is a legal document.

Whether you’re forming a single-member or multi-member LLC, your operating agreement should include all of the topics listed below. Some of these rules will have minimal effect on the day-to-day operations of a single-member LLC, but they must be included for legal reasons.

  1. Organization: Consider when the LLC was officially formed, who its members are, and how ownership is allocated. Multi-member LLCs may have equal ownership or may assign various “units” of ownership to different members.
  2. Voting and management: Determine whether the LLC will be controlled by its members or by appointed management, and how members will vote on business issues. Each member typically has one vote, although you may want to delegate more authority to specific members than others.
  3. Capital Contributions: The amount of money each member invests in the company. This is also the time to consider how you will raise additional funds in the future.
  4. Distributions: Profits and losses will be paid among members based on the distributions. The most common strategy is to split profits evenly. If you want them distributed differently, you should state how in your operating agreement.
  5. Membership Structure Changes: How will roles and ownership be transferred if a member leaves the organization? It is vital to clearly out the method for buying out and/or replacing a member in the LLC’s governing document.
  6. Dissolution: If all of the members of your LLC decide that you no longer wish to do business, you should properly dissolve it. A critical component of your operating agreement is the mechanism for possibly terminating your firm.

Purpose of an Operating Agreement for a Maryland LLC

You’ll need an operating agreement regardless of the sort of Maryland LLC you’re forming. This is why:

  • The state has recommended it. Every Maryland LLC may establish an operating agreement to control the company’s operational operations, according to Maryland Code Section 4A–402.
  • It will keep your company partners from fighting. If you’re forming a multi-member LLC, having an operating agreement in place will help you avoid misunderstandings by defining each partner’s position and obligations.
  • It aids in the preservation of your limited liability status. If you’re the only owner of a single-member LLC in Maryland, an operating agreement will assist guarantee that your limited liability status is sustained by court authorities, as well as contribute to your company’s overall credibility.

Is it truly necessary for me to have an operating agreement? Yes. Having an operating agreement in place, even if you don’t register it with the state, is the best method to keep control of your Maryland LLC in the event of change or disruption.

When should my operating agreement be written? While it’s a good idea to draft an operating agreement before submitting your Articles of Organization, the state doesn’t prevent LLCs from waiting until the procedure is complete. It’s worth mentioning that in order to create a business bank account, some banks ask you to present an operating agreement.

Is it necessary for me to register my operating agreement with the state? No. The LLC members are required to keep their operating agreements. Your operating agreement does not need to be filed with the state.


Step 5: Obtain an Employer Identification Number [Price: FREE]

Employer-Identification-Number-IEN

Employer Identification Number (EIN) is an acronym for Employer Identification Number. The Internal Revenue Service (IRS) assigns EINs to businesses to assist them be identified for tax reasons. It’s essentially a business’s version of a Social Security number.

A Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN) is another name for an EIN (FTIN).

What is the purpose of having an EIN? An EIN is necessary for the following purposes:

  • Open a bank account for your business.
  • Taxes are filed and managed at the federal and state levels.
  • Employ people.

What if my single proprietorship already has an EIN? When changing to an LLC, the IRS requires sole proprietorships to get a new EIN.

Where can I obtain an EIN? The IRS will provide you with an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or through mail.

APPLICANTS FOR AN EIN FROM OUTSIDE THE US: An EIN can be obtained without the need of a Social Security number.


GET AN EIN

Option 1: Request an EIN from the IRS

APPLY ONLINE

– OR –

Option 2: Apply for an EIN by Mail or Fax

DOWNLOAD FORM

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free


If I don’t have a Social Security number, how can I acquire an EIN? An EIN does not require a Social Security number. You can just leave section 7b blank on the IRS Form SS-4. Then, to finish your application, call the IRS at (267) 941-1099.

What tax structure should I choose for my LLC?

When you apply for an EIN, you will be told of the many tax categorization options accessible to you. The default tax status is chosen by the majority of LLCs.

Some LLCs, on the other hand, can lower their federal tax liability by electing the S corporation (S corp) classification.

Is an EIN required for my LLC? An EIN is required for an LLC with employees or more than one member. The Internal Revenue Service (IRS) requires this.


Steps to Take After Creating a Maryland LLC

Keep your personal and business assets separate.

When your personal and company accounts are intermingled, your personal assets (such as your house, vehicle, and other possessions) are put at danger if your Maryland LLC is sued. This is referred to as penetrating the corporate veil in business law.

You may begin safeguarding your LLC in Maryland by taking the following steps:

1. Open a business checking account:

  • This separates your personal assets from those of your firm, which is required for asset protection.
  • It simplifies bookkeeping and tax reporting.

2. Obtaining a business credit card:

  • Assists in categorizing and separating all business costs for tax purposes at the end of the year.
  • Aids in the development of your business credit score, which is a necessary step in obtaining a line of credit or a business loan in the future.
  • Allows you to keep track of department spending by giving your staff various cards (each with a different budget).

3. Hiring a business accountant:

  • Avoids overpaying taxes and helps you avoid penalties, fines, and other costly tax mistakes by hiring a company accountant.
  • Allows you to concentrate more time on your expanding business by simplifying bookkeeping and payroll.
  • Improves the management of your company’s funds by identifying areas of unanticipated loss or profit.

Employee Recruitment via Your New LLC

If you want to hire employees for your Maryland business, follow these measures to stay in compliance with the law:

  • Verify that new hires are eligible to work in the United States.
  • Employees should be reported to the state as “new hires.”
  • Employees should be covered by workers’ compensation insurance.
  • Employee taxes should be withheld.
  • Print workplace compliance posters and install them in prominent locations across your office.

What is Maryland’s minimum wage? Firms with 15 or more employees must pay $12.50 per hour, while employers with 14 or less employees must pay $12.20 per hour.

In Maryland, how often do I have to pay my employees? Employers in Maryland must pay their employees every two weeks.


FAQ: Maryland LLC – Various Costs

Is it necessary to pay a fee for a Maryland LLC every year?

Yes, a Maryland LLC must pay a $300 yearly report fee each year.

Is it really required to form an LLC in Maryland?

An LLC offers limited liability protection. This implies that in the case of a business loss, such as a lawsuit or unpaid debt, an LLC protects your personal assets.

Any small firm with even the tiniest degree of risk or liability should incorporate an LLC, according to us.


Get Professional Help When Forming an LLC in Maryland

It can be difficult and time-consuming to form a Maryland LLC. It might be beneficial to have some assistance, and we’ve compiled a list of two of the top LLC creation services available.

#1 – ZenBusiness can help you form an LLC in Maryland

ZenBusiness provides LLC creation services at a low cost and with several useful features. Most LLCs will benefit from two of these aspects. All ZenBusiness’s products include a year of complimentary registered agent service. With their Pro and Premium Packages, they offer ensure worry-free compliance. ZenBusiness will file your yearly report and notify you if there is anything further you need to do to follow the state under this assurance. For $119 per year, those with the basic package can purchase worry-free compliance.

They have a customer satisfaction rating of 98 percent and over 4500+ verified reviews.

You can also take a look at our full review of ZenBusiness here.

$49

star rating image

Rating: 4.8/5
Review count: 4500+

zenbusiness logo new

Form an LLC today with ZenBusiness for only $49. They Have 98% customer satisfaction rating and over 4500+ verified reviews.


#2 – Create an LLC in Maryland using Northwest Registered Agent

With decades of expertise, Northwest Registered Agent is an exceptional LLC creation service. They deliver excellent, well-informed customer service. Their biggest benefit, though, is the seclusion they provide. They don’t outsource any of their services to third parties, don’t sell your information, and even build their own code.

Northwest can help you form an LLC in Maryland right now. They have a customer satisfaction rating of 98 percent and over 4150 verified reviews. They’ll come with a complimentary year of registered agent service!

And here’s our extensive guide and review about Northwest Registered Agent.

From $35+State Fees

star rating image

Rating: 4.9/5
Review count: 4150+

northwest-logo

Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!


In Conclusion

In this guide, we’ve covered a variety of Maryland LLC charges, some of which will apply to all LLCs in the state. As you can see, there are a number of costs that will only apply to Maryland LLCs. The most essential message is that you should not try to discover ways to avoid paying these fees by looking for loopholes, since the repercussions might be severe and readily avoided.

In addition, starting a Maryland LLC isn’t as expensive as it seems.
The total cost shouldn’t exceed:

  • $49 if you’re forming a basic LLC with all the basic options with ZenBusiness.
  • $39/mo if you’re forming a top-notch LLC with Northwest.
  • ~$145 if you’re forming an LLC yourself.

However, there are still some methods to save money on your LLC formation and maintenance expenditures, such as using a low-cost business formation provider to handle your Articles of Organization filing and serve as your registered agent.

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Founder & Author

Ian Broderick is an avid author and owner of LLCGuys.com. He's been involved with the LLC formation field for over 4 years. On top of that, he has worked in several well-known LLC formation service providers. Now he decided to share his knowledge and advice with everybody. Since there are a lot of questions and concerns surrounding this field - his aim is to make LLCGuys a top-notch information provider in regards to LLC creation, service reviews and etc..

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