🦀How to Start an LLC in Maryland: 2025 Step-by-Step Guide
Step-by-step guide on how to start an LLC in Maryland in 2025. Learn state filing fees, EIN setup, operating agreements, licenses, and more.
🤔 Why Start an LLC in Maryland?
Starting an LLC in Maryland is one of the smartest ways to structure your small business. Whether you’re launching a tech startup in Baltimore, opening a coffee shop in Annapolis, or running an e-commerce business from home, a Maryland LLC offers a balanced blend of liability protection, tax flexibility, and business credibility.
| Benefit | Description |
|---|---|
| 🛡️ Personal Asset Protection | Shields your personal assets from business liabilities. |
| 💰 Tax Flexibility | Choose to be taxed as a sole prop, partnership, or corporation. |
| ✔️ Business Credibility | Boosts trust with clients and partners. |
| 🔄 Easy Management | Flexible operating structure and fewer compliance hurdles. |
| 📈 Scalable | Great for small to large business expansion. |
🧭 Step-by-Step: Forming a Maryland LLC
1. 🏷️ Choose a Name for Your Maryland LLC
Your LLC name must:
Be distinguishable from existing Maryland businesses
Include “Limited Liability Company,” “LLC,” or “L.L.C.”
Avoid restricted words unless authorized (e.g., “Bank,” “Attorney”)
🔍 Check availability with the Maryland Business Entity Search.
You can reserve a name for 30 days by filing a Name Reservation form with a $25 fee.
2. 🧑💼 Appoint a Registered Agent
Every Maryland LLC must designate a registered agent (also known as a resident agent) to receive legal documents.
Requirements:
Must be a Maryland resident or authorized entity
Must have a physical Maryland address (no P.O. Boxes)
Must be available during business hours
You can act as your own agent or hire a professional service.
3. 📝 File the Articles of Organization
To legally form your LLC, submit the Articles of Organization to the Maryland Department of Assessments and Taxation (SDAT).
Filing Fee: $100 (plus a 3% service fee for online filings)
Processing Time: Online filings are typically processed within 7 business days; mail filings take 4–6 weeks
Filing Methods: Online via Maryland Business Express or by mail
4. 📃 Create an Operating Agreement
An operating agreement outlines your LLC’s structure and operating procedures.
While not legally required in Maryland, it’s highly recommended to:
Define member roles and responsibilities
Establish decision-making processes
Protect your limited liability status
we offer free templates for both member-managed and manager-managed LLCs.
5. 🆔 Obtain an EIN from the IRS
An Employer Identification Number (EIN) is necessary for:
Opening a business bank account
Hiring employees
Filing federal and state taxes
🆓 Apply online at IRS.gov.
6. 🛠️ Acquire Necessary Business Licenses
Maryland doesn’t have a general state business license, but you may need:
Local licenses (city or county)
Professional licenses (depending on your industry)
Sales and use tax license from the Comptroller of Maryland
7. 💼 Open a Business Bank Account
Keep personal and business finances separate. You’ll need:
EIN
Certificate of Formation
Operating Agreement
7. 📆 File Annual Reports
Maryland requires LLCs to file an Annual Report every year.
Fee: $300
Due: By April 15 each year
File Online: Maryland Business Express
🔍 People Also Ask
How much does it cost to start an LLC in Maryland?
The filing fee is $100. Additional fees may apply for expedited service or hiring a registered agent.
How long does it take to form an LLC in Maryland?
Standard processing: 4–6 weeks. Expedited: 7–10 business days.
💰 Maryland LLC Costs Breakdown (2025)
| Document/Service | Cost |
|---|---|
| Articles of Organization | $100 (online) |
| Registered Agent (annual) | $50–$150 |
| EIN | Free |
| Operating Agreement | Free (DIY) |
| Business Licenses | Varies |
| Annual Report | $300/year |
🏢 Maryland Department of Assessments and Taxation Contact Info
Office: Maryland Department of Assessments and Taxation (SDAT)
Phone: (410) 767-1340
Website: https://dat.maryland.gov
Address: 301 W. Preston Street, Baltimore, MD 21201
❓ FAQs: People Also Ask
1. Do I need a registered agent in Maryland?
Yes, every LLC in Maryland must have a registered agent with a physical address in the state.
2. Can I be my own registered agent?
Yes, if you have a physical address in Maryland and are available during business hours.
3. Is an operating agreement required in Maryland?
No, but it’s highly recommended to outline your LLC’s structure and operations.
4. Do I need an EIN for my Maryland LLC?
Yes, especially if you plan to hire employees or open a business bank account.
5. What is the annual report fee in Maryland?
$300, due by April 15 each year.
6. Do I need a business license in Maryland?
It depends on your business type and location; check with local authorities.
7. Can I reserve a business name in Maryland?
Yes, you can reserve a name for 30 days by filing a Name Reservation form with a $25 fee.
8. Do I need to file annual reports in Maryland?
Yes, Maryland requires annual reports to keep your LLC in good standing.
About Us
We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.
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contact details
- support@tostartanllc.com
- +1 (646) 347-3833
- 1494 State St, Schenectady, NY 12304,
