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Maryland with One IBC

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Basic

$199

+ States Filing Fees

Form my LLC

02 weeks processing

Agent fee

Registered Address

Document filing with the Secretary of State

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Standard

$499

+ States Filing Fees

Form my LLC

05 days processing

Includes everything in basic package

Comprehensive name check

Preparation of Articles of Incorporation

Lifetime customer support (phone & email)

Federal Tax ID (EIN) Obtainment Service

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$599

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Form my LLC

01 day processing

Includes everything in standard package

2 hours of free tax consultation

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Key Points for Maryland LLCs

Flexible Tax Structure

Maryland LLCs offer pass-through taxation by default, helping business owners avoid double taxation while allowing options to elect corporate treatment if needed.

Strong Asset Protection

LLCs in Maryland shield personal assets from business liabilities, offering legal separation between owners and company operations.

Accessible Business Environment

With a centralized online filing system and support for small businesses, Maryland makes it easy to start and manage an LLC.

Understanding Maryland LLCs

A Maryland LLC offers personal liability protection and management flexibility, making it a popular choice for business owners. Its simple setup and legal advantages support both new and growing businesses.

What is a Maryland LLC?

A Maryland LLC is a legal business structure that offers limited liability protection to its owners (called members) while allowing for flexible internal operations. Members are generally not personally liable for business debts, and the LLC can be structured as either member-managed or manager-managed, depending on the owners' preferences.

A Maryland LLC offers several benefits, including:

Limited personal liability, pass-through taxation, flexible management structures, and minimal reporting obligations. LLCs in Maryland also enjoy privacy protections and legal recognition, which enhance business credibility.

Why choose an LLC in Maryland?

Forming an LLC in Maryland provides entrepreneurs with a balance of legal protection and operational simplicity. It shields personal assets, avoids double taxation, and offers flexible ownership structures. Maryland’s pro-business regulatory environment and relatively low compliance burdens make it attractive for startups and growing businesses alike.

Key Benefits Include:

Privacy Protection

Predictable Taxes

No Double Taxation

Legal Environment

Business Credibility

Clear Guidelines

Pros and Cons of an LLC in Maryland

Starting a Maryland LLC: Benefits

A Maryland LLC protects members from personal liability for business debts and obligations. It provides operational flexibility, allows for privacy with limited public disclosure of ownership, and does not require a formal board of directors. Maryland also allows single-member LLCs, making it ideal for solo entrepreneurs.

Taxation of a Maryland LLC

Maryland LLCs benefit from pass-through taxation, meaning business profits are reported on members’ personal tax returns. There is no separate state-level entity tax for standard LLCs, although LLCs may be subject to state income tax through their members, and other business-related taxes depending on activity and structure.

Starting a Maryland LLC: Drawbacks

While forming an LLC in Maryland is easier than forming a corporation, it still involves filing fees and ongoing compliance. Transferring ownership interests can be complex without a detailed operating agreement, and multi-member LLCs may face disputes if internal rules are unclear. Additionally, businesses operating in certain counties may face local licensing or tax obligations.

Who Can Form an LLC in Maryland?

Any individual or business entity can form an LLC in Maryland, including sole proprietors, partnerships, and existing companies.

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Types of LLCs in Maryland

Domestic LLC

A Domestic LLC is formed under Maryland law and operates primarily within the state. It requires filing Articles of Organization with the State Department of Assessments and Taxation (SDAT), appointing a Maryland-based registered agent, and maintaining compliance with state regulations.

Foreign LLC

A Foreign LLC is a business formed in another state that seeks to operate in Maryland. To register, it must file a Foreign Registration Statement with SDAT and provide a Certificate of Good Standing from its home state.

Professional LLC (PLLC)

A PLLC is intended for licensed professionals such as attorneys, architects, or medical practitioners. All members must be licensed in their profession, and the company must adhere to Maryland’s professional licensing board requirements.

How to Start an LLC in Maryland

Choose a Business Name

Select a unique name that includes "LLC" or "L.L.C." and ensure it’s distinguishable from existing entities in Maryland. Use the Secretary of State’s name search tool to verify availability.

Appoint a Registered Agent

Designate a registered agent to accept legal documents. This can be an individual or a registered service company with a physical address in Maryland.

File the Articles of Organization

Submit Form LLC to the Maryland Secretary of State, providing LLC name, principal office address, and registered agent details.

Create an Operating Agreement

Though not required, it’s recommended to draft an Operating Agreement outlining ownership, governance, and profit distribution to reinforce liability protection and support tax compliance.

Maryland LLC Requirements

Age and Residency

Number of Members

Management Structure

Registered Agent and Office

Name Compliance

Maryland LLC Application

To start an LLC in Maryland, the key step is filing the Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT). This legally establishes your business as a limited liability company in the state.

Required Information

The Articles of Organization must include:

LLC name (must include “LLC” or “L.L.C.” and be distinguishable from existing entities)
Name and address of the resident agent in Maryland
Principal office address (can be outside of Maryland)
Name and signature of at least one authorized person (the organizer)
Purpose of the business (a general statement is acceptable)

Filing Options

Online: Use the Maryland Business Express portal for fastest filing and processing
By Mail: Send completed Articles of Organization with the required filing fee to: SDAT, Charter Division, 301 W. Preston Street, Room 801, Baltimore, MD 21201.
In Person: Submit documents at the SDAT office in Baltimore during business hours (expedited service available for an additional fee)

Post-Filing Requirements

Operating Agreement: Not required to be filed with the state, but strongly recommended to define ownership and management rights.
Annual Report & Personal Property Return: Due each year by April 15 through the Maryland Business Express system.
Business Licenses: Depending on business type and location, you may need to register for a Trader’s License or other local permits.
Foreign LLCs: LLCs formed outside Maryland must file a Foreign Registration Statement, submit a Certificate of Good Standing from their home state, and appoint a Maryland resident agent.

Maryland LLC Taxation

State Income Tax

Maryland does not impose a separate entity-level tax on standard LLCs. By default, LLCs are treated as pass-through entities, meaning income is reported on members' individual tax returns. However, if an LLC elects corporate taxation, it will be subject to Maryland’s corporate income tax.

Personal Income Tax

Members of an LLC must report and pay Maryland state income tax on their share of the company’s profits. Maryland has a progressive income tax rate, along with local county-level income taxes.

Sales and Use Tax

LLCs that sell tangible goods or taxable services must collect Maryland’s state sales tax, which is 6%. LLCs must register for a Sales and Use Tax License with the Comptroller of Maryland and comply with ongoing filing requirements.

Maryland LLC Annual Filing

What to File

All Maryland LLCs must file an Annual Report each year. If the LLC owns, leases, or uses personal property in Maryland, it must also submit a Personal Property Tax Return. The report includes the LLC name, principal business address, registered agent information, and confirmation of business activity within the state.

Filing Deadlines

The Annual Report and, if applicable, the Personal Property Return are due by April 15 every year. This deadline applies regardless of when the LLC was formed during the previous year.

Penalties & Consequences

Failure to file may cause the LLC to fall out of good standing with the state. Continued non-compliance can lead to forfeiture of the business charter, suspension of legal rights, and loss of liability protection until reinstatement is completed.

Expanding Your Maryland LLC

As your business grows, you may want to operate beyond Maryland’s borders. This requires registering your Maryland LLC as a foreign LLC in each new state where you plan to conduct business, and complying with that state's local laws.

Registering a Foreign LLC in Maryland

If your LLC was originally formed in another state but plans to operate in Maryland, you must file a Foreign Limited Liability Company Registration with the Maryland Department of Assessments and Taxation. You’ll also need to provide a Certificate of Good Standing from your home state and designate a Maryland resident agent for service of process.

Doing Business in Other States

To expand your Maryland LLC into other states, you must register as a foreign LLC in each state where you conduct business. This typically involves filing a foreign registration application, submitting a Certificate of Good Standing from Maryland, and appointing a registered agent in that state. Each state has its own compliance, tax, and reporting rules.