How to start an LLC in Maryland: Your 2025 step-by-step guide

When starting a business in Maryland, one of the first steps is deciding on a business structure. You can register as a sole proprietorship, partnership, corporation, or LLC. Each option comes with its own legal, tax, and operational implications, so it's important to choose the structure that best fits your goals.

LLCs are among Maryland's most commonly registered business structures, especially for small businesses. It is a structure that offers some important advantages. 

Jump to:

• Why choose an LLC in Maryland?
• New business data in Maryland in 2025
• 5 steps for creating an LLC in Maryland
• Step 1: Choose a name for your Maryland LLC
• Step 2: Choose a resident agent in Maryland
• Step 3: Complete the Articles of Organization form and file your Maryland LLC
• Step 4: Get an Employer Identification Number (EIN)
• Step 5: Ongoing compliance and required filings
• Types of LLCs to consider in Maryland
• Costs of setting up an LLC in Maryland
• LLC Taxes in Maryland
• Frequently asked questions

Why choose an LLC in Maryland?

An LLC can be a good option for Maryland entrepreneurs because this structure offers the liability protection of a corporation with the flexibility and tax benefits of a partnership. LLC members can shield personal assets while benefiting from pass-through taxation, avoiding corporate income taxes at the state level.

This guide will explain how to start an LLC in Maryland. It covers the costs and paperwork involved, tax considerations, how accounting software could help, and other important information to set yourself up for success. 

New business data in Maryland in 2025

Maryland’s economy continues to grow, adding over 38,000 jobs last year, including 27,300 in the private sector. Home to more than 560,000 small, minority-, and women-owned businesses, the state remains a top destination for entrepreneurs. Maryland ranks third nationally in life sciences innovation and is strong in the cybersecurity, and aerospace sectors.

To fuel further growth, Maryland announced the “Capital of Quantum” Initiative, a public-private partnership aimed at driving $1 billion in investments to position the state as a global leader in quantum technology. The state has also allocated $25 million to the Sunny Day Fund to attract business relocations, $15 million for Tradepoint Atlantic’s Terminal Container Project to create over 1,000 union jobs, and $10 million for the Build Our Future Innovation Program to support high-tech infrastructure. These strategic investments position Maryland as a leader in innovation and business expansion.

5 steps for creating an LLC in Maryland 

Starting an LLC in Maryland is a major step toward growing your business. The process requires important decisions, such as choosing a unique name, filing necessary documents, and securing an EIN. The next sections explain each step to make setting up your Maryland LLC simple and straightforward.

Step 1: Choose a name for your Maryland LLC

The name of a Maryland LLC will be the legal name of your business. This is different from a trade name or a trademark, which require separate registrations.

Choose a name that is easy to remember and lets prospective customers know what products or services your company will provide. You should also ensure that a URL matching your chosen name is available. Your LLC's name must also comply with Maryland’s naming rules. 

Maryland LLC naming rules

When choosing a name for your LLC in Maryland, there are specific guidelines you must follow:

Uniqueness requirement

• Your LLC name cannot be identical or deceptively similar to an existing LLC registered in Maryland.

LLC designation 

• The name must include one of the following designations:
• Limited Liability Company
• L.L.C.
• LLC 
• L.C. 
• L C

Accurate representation

• The name must align with the purpose of your LLC as stated in your Articles of Organization.
• Misleading names, such as "Not An LLC," cannot be registered.

Restricted words

Certain words require authorization before they can be used in an LLC name:

• “Bank”
• “Trust”
• “Insurance Company”
• Other regulated terms that imply a specific type of business entity.

Before finalizing your LLC name, ensure it meets these requirements to avoid delays or rejection in the registration process.

Check for name availability

Once you have chosen a name for your new business, you must ensure that no other company is already using it. Check name availability through the Maryland Business Express website entity search before registering your business.

Be aware that in Maryland, subtle variations in business names may not be sufficient to make them legally distinct. The state applies strict criteria when determining name uniqueness. For example:

• Suffixes (e.g., Inc., LLC, Co.), for example, Baltimore Pottery, Co. and Baltimore Pottery, LLC are not considered different.
• Articles (e.g., the, a, an)
• Interchanging "and" with "&"
• Singular, plural, or possessive forms of a word
• Substituting numbers for words (five vs. 5) 

When searching for name availability, focus on your preferred core name without these variations.

Reserving your LLC name

While name reservation is not required, you can opt to reserve the name before someone else grabs it by submitting a Corporate Name Reservation Application, which is only available for paper filing, along with the $25 fee ($20 extra for expedited service). You can mail the form to the Maryland Department of Assessments and Taxation (also known as the State Department of Assessments and Taxation, or SDAT) or use the drop box in the lobby of 123 Market Place in Downtown Baltimore. This reservation is good for 30 days.

Step 2: Choose a resident agent in Maryland

When forming an LLC in Maryland, you must designate a resident agent (also known as a "registered agent" in other states). This agent serves as the official contact for legal documents.

Who needs a resident agent?

• All Maryland LLCs must appoint a resident agent.
• Foreign LLCs registering in Maryland must also designate a resident agent, even if they have an agent in their home state.

Who can be a resident agent?

• Individual: An adult (at least 18 years old) who is a resident of Maryland and meets the following requirements.
• Has a physical street address in Maryland (P.O. boxes are not acceptable).
• Is available during normal business hours to receive legal documents on behalf of the LLC.
• Registered agent service: If you prefer not to receive legal documents at your personal or business address, consider hiring a professional registered agent service. These companies provide a physical street address in Maryland for your LLC to receive documents. 

In Maryland, an LLC cannot act as its own registered agent. Designating a resident agent is a firm requirement set by the Maryland State Department of Assessments and Taxation (SDAT) to ensure LLCs can receive official legal notifications.

Choosing a resident agent service

There are many resident agent services available in Maryland. If you’re thinking about hiring a professional provider, here are some tips for finding the right one.

Research and compare

Be sure to research different providers and compare factors such as:

• Cost: Fees typically start around $50 per year.
• Reputation: Choose a reputable company with a proven track record.
• Customer support: Ensure they provide excellent customer service and support.
• Knowledge. Select a provider with a strong understanding of Maryland-specific compliance requirements to ensure your business stays in good standing.
• Coverage. For businesses operating in multiple states, choose a provider that offers services across all the states where you plan to operate.

Consider bundled services

If you're using a company formation service or an attorney to set up your LLC, they may offer resident agent services as part of a package.

Step 3: Complete the Articles of Organization form and file your Maryland LLC

Once you’ve decided on your name and your registered agent, the next step is to fill out the Articles of Organization form.

What is an Articles of Organization?

The Articles of Organization is a legal document submitted to Maryland to officially form a limited liability company. It includes essential details such as your business name, address, members, purpose, and management structure. This document serves as the foundation for your LLC's legal operation within the state. 

In Maryland, Articles of Organization are filed with the State Department of Assessments and Taxation. The fee to file a new Maryland Articles of Organization is $100. Optional certified copies cost an additional $20 + $1.00 per page. 

You have two options for obtaining and submitting the form:

Option 1: Online

Most filings can be submitted through the Maryland Business Express online portal, which has been recognized by the Center for Digital Government with awards for excellence in the Government-to-Business category. The website is fully responsive and features an intuitive workflow, thus allowing you to complete the LLC registration process from your desktop, laptop, tablet, or smartphone.

Option 2: Mail-in filing

You can file an LLC in Maryland by mailing paper forms, but the Maryland SDAT strongly recommends online registration. Filing by mail can take several weeks, and you'll still need to create a Business Express online account for future LLC transactions. Registering online is faster and more efficient.

For mail-in filing, print and complete the Articles of Organization for Limited Liability Company form and mail it or hand deliver it to the designated address on the form with the required payment.

How long does it take for an LLC to get approved in Maryland?

This all depends on how you submit the paperwork. All online filings are considered expedited and should be reviewed within seven to 10 business days. Standard processing for mail-in filing is six to eight weeks. 

SDAT identification number 

Once your LLC is approved, the Maryland Department of Assessments and Taxation will assign a unique Identification Number, starting with a specific letter (D, F, W, L, T, or Z). This number identifies your business in Maryland but is not the same as the federal EIN issued by the IRS.

If you are not a Maryland resident

To conduct business in Maryland as a non-resident and establish a foreign (out-of-state) LLC, follow these steps:

1. Designate a resident agent: Appoint a resident agent with a physical street address in Maryland to receive legal documents on behalf of your LLC.
2. Ensure compliance with naming rules: Your LLC's name must be distinguishable from existing entities registered in Maryland. If a conflict exists, you may need to register under an assumed name. 
3. Obtain a Certificate of Good Standing: Provide a Certificate of Status (equivalent to a Certificate of Good Standing) from your LLC's home state, issued within the last 60 days. This will need to accompany your Maryland LLC registration.
4. Complete the application for registration: Complete the "Limited Liability Corporation (For non-Maryland Limited Liability Company)" form, available through the Maryland State Department of Assessments and Taxation.
5. File the application with applicable filing fee: Submit your completed application and accompanying documents to SDAT. While online filing is recommended for efficiency, you can also file by mail. The filing fee for registering a foreign LLC in Maryland is $100.

Visit the SDAT website for more information on filing as a foreign LLC. 

What to include in your LLC's Articles of Organization form

Completing the Articles of Organization form is a fairly simple process since not much information is required. You will be asked to provide:

• The name of your LLC
• The purpose of your LLC, a one or two sentence description of your business
• The address of the LLC in Maryland (must be a street address, not a P.O. box)
• The name, address, and signature of your registered agent
• Your signature

Step 4: Get an Employer Identification Number (EIN)

You’ll likely need an Employer Identification Number (EIN) from the Internal Revenue Service to form an LLC in Maryland. An EIN is a nine-digit number that identifies a business for tax purposes, similar to a Social Security Number for your company.

According to the IRS, you need an EIN if any of the following apply:

1. You have employees
2. Your business operates as a corporation or partnership
3. You file employment, excise, or alcohol, tobacco, and firearms tax returns
4. You withhold taxes on income, other than wages, paid to a non-resident alien
5. You have a Keogh plan (a tax-deferred pension plan)
6. You are involved with certain types of organizations, including trusts, estates, real estate mortgage investment conduits, non-profit organizations, farmers' cooperatives, or plan administrators

Single-member LLC considerations

If you are a single-member LLC, you may not be required to obtain an EIN. However, getting one is still a smart idea, as your business needs might change over time, and obtaining an EIN is free.

An EIN becomes mandatory if your LLC elects to be taxed as a corporation, hires employees, or files excise or employment tax returns.

Having an EIN also simplifies opening a business bank account and protects your personal Social Security Number, reducing the risk of identity theft.

Requesting an EIN

You can request an EIN by mail or phone, but the fastest method is completing the process online on the IRS website. After obtaining an EIN, use accounting software to track business expenses and ensure your company’s finances remain separate from your personal finances. 

Step 5: Ongoing compliance and required filings 

Getting your LLC certificate is the first step of the business compliance journey. To continue doing business, you must adhere to the state and federal laws and regulations to keep your LLC compliant, which include:

• Annual report and personal property tax return
• Filing requirement: All LLCs both foreign and domestic must submit an Annual Report (Form 1) to the Maryland State Department of Assessments and Taxation by April 15 each year. If your LLC owns, leases, or uses personal property in Maryland, or maintains a trader's license, you are also required to file a Personal Property Tax Return with your annual report:
• Purpose: To confirm your LLC's good standing and provide updated business information.
• Filing method: File online via Maryland Business Express or mail the completed Form 1 to SDAT.
• Fees: The filing fee varies based on your business type and assets, but the typical fee is $300. Late filings may incur penalties.

Visit Maryland Business Express for more information on Annual Report requirements.

• Beneficial Ownership Information Report
• Filing Requirement: Submit a Beneficial Ownership Information Report to the U.S. Department of the Treasury within 30 days of forming your LLC.
• Purpose: This report helps prevent money laundering and other financial crimes by identifying the true owners of the LLC.
• Who needs to file: All LLCs formed in 2024 or later are required to file.
• How to file: File the report online through the U.S. Treasury Financial Crimes Enforcement Network website.
• Fees: There is no filing fee.
• Business licenses and permits
• Requirement: Depending on your industry and location, specific licenses or permits may be necessary. Businesses selling certain products may require additional licensing.
• Examples: 
• Professional services
• Food and beverage establishments
• Construction firms
• Plumber and gas fitters
• Verification: Consult the Maryland OneStop Portal and your local Clerk of the Circuit Court to determine the specific requirements for your business. You may also call the State License Bureau at 410-260-6240.
• State tax registration
• Requirement: If your LLC will collect state taxes, such as sales tax, you must register with the Maryland Comptroller's Office.
• Tax determination: Use the Comptroller's business tax resources to identify the taxes applicable to you.
• Registration methods: Register online or by mail through the Comptroller of Maryland's website.
• Purchase insurance
• Requirement: Depending on the type of business you operate, you may also need to get specific insurance coverage, such as:
• Commercial auto insurance
• Liability insurance
• Workers’ compensation insurance
• Information: Check the Business Owner’s Guide to Commercial Insurance or call the Maryland Insurance Administration at 410-468-2000 for more information. 
• Withholding tax registration
• Requirement: Businesses with employees are required to withhold Maryland state income tax from employee wages and remit these taxes to the Comptroller of Maryland. 
• Registration: Employers must register for a withholding tax account by completing the Combined Registration Application. 
• Information: For detailed guidance on withholding requirements, employers should refer to the Maryland Employer Withholding Guide.
• Certificate of Status (optional):
• Requirement; While not always legally required, a Certificate of Status can be beneficial.
• Purpose: It verifies that your LLC is in good standing with the state of Maryland.
• Why you may need it: To open a business bank account, obtain certain licenses, or apply for credit card processing.
• How to obtain it: Apply online through Maryland Business Express
• Fee: $20

Types of LLCs to consider in Maryland 

When establishing an LLC in Maryland, it's important to understand the different types available to determine which best suits your business needs.

Single-member LLC

A single-member LLC is owned by one individual or entity, providing liability protection while allowing for simplified management and taxation. In Maryland, a single-member LLC can be treated as a disregarded entity for federal income tax purposes, meaning the business activities are reported on the owner's personal tax return.

Multi-member LLC

A multi-member LLC consists of two or more members who share ownership. This structure offers flexibility in management and profit distribution among members. Multi-member LLCs are typically treated as partnerships for tax purposes, unless they elect to be taxed as a corporation.

Professional LLC (PLLC)

Designed for licensed professionals such as doctors, lawyers, or accountants, a PLLC allows individuals to offer professional services under an LLC structure. In Maryland, certain licensed professions may be required to form a professional entity. It's advisable to consult with the appropriate Maryland licensing boards to determine eligibility and specific requirements. Maryland Department of Labor’s Division of Occupational and Professional Licensing may also be a helpful resource.

Manager-managed LLC

In a manager-managed LLC, members appoint one or more managers to handle the daily operations, allowing non-managing members to act as passive investors.

Member-managed LLC

A member-managed LLC involves all members actively participating in the management and decision-making processes of the company. This is the default management structure for LLCs in Maryland unless otherwise specified in the Articles of Organization.

Costs of setting up an LLC in Maryland

Setting up a limited liability company in Maryland involves several fees: 

• A $100 one-time fee to file your Articles of Organization
• Registered agent service fees, if applicable, which typically start at $50 a year
• All Maryland LLCs must file an Annual Report and, if applicable, a Personal Property Return each year. The standard filing fee is $300.

Other costs you may have to cover include late fees if you file any required paperwork after its due date and license or permit fees if your business operates in a regulated industry.

Open a Maryland LLC business bank account

One of the biggest benefits of forming an LLC is shielding your personal assets if your business is sued. However, this protection can be lost if you mix personal and business assets.

To maintain this protection, open a separate bank account for your LLC. This ensures your business finances remain distinct from your personal ones.

What you'll need 

When opening a business bank account, you’ll typically need:

• Your EIN and your SDAT identification number
• Articles of Organization, typically a certified copy which can be ordered through Maryland Business Express
• (Possibly) an operating agreement and Certificate of Status
• Personal identification

Out-of-state residents should consider choosing a bank with a presence in the state.

After opening your bank account, use QuickBooks accounting software to keep track and manage your finances. 

LLC taxes in Maryland 

Maryland LLCs can be classified differently for federal tax purposes. They may be treated as a sole proprietorship (for single-member LLCs), partnership, C corporation, or S corporation. This classification affects how the LLC is taxed at both the federal and state levels.

Federal tax classification

Similar to federal guidelines, Maryland LLCs can choose their tax classification:

• Single-member LLCs: Automatically treated as disregarded entities, with income and expenses reported on the owner's personal tax return.
• Multi-member LLCs: Default to partnership taxation, requiring the filing of Form 1065 with the IRS.
• Election as a corporation: LLCs can opt to be taxed as a C corporation or S corporation by filing the appropriate forms with the IRS.

State income tax

Maryland imposes a state income tax on personal income, which affects LLC members differently based on the entity's tax classification:

Pass-through entities

For LLCs taxed as sole proprietorships, partnerships, or S corporations, profits pass through to members' personal tax returns. Members are then subject to Maryland's state income tax rates on their share of the income.

C Corporations

LLCs electing to be taxed as C corporations are subject to Maryland's corporate income tax. As of 2025, the rate is 7.75%, with plans to decrease it to 6.25% by 2028.

Business property tax

Maryland levies an annual tax on business personal property, which includes items such as furniture, fixtures, tools, machinery, and equipment. The Department of Assessments and Taxation oversees the valuation process, while counties and municipalities handle the collection based on the property's location. All businesses owning or leasing personal property in Maryland are required to file an annual business Personal Property Tax Return with their Annual Report.

Sales and Use Tax

In Maryland, LLCs selling tangible personal property or certain taxable services are required to collect sales and use tax from customers. To comply, businesses must register for a sales and use tax account with the Comptroller of Maryland. 

Employment Taxes

LLCs in Maryland with employees are responsible for withholding state income tax from employee wages and paying unemployment insurance tax. 

Maryland-related resources 

• Maryland Business Express (MBE): A one-stop online portal for LLC registration, tax account setup, and compliance filings, including Articles of Organization and annual reports.
• Maryland Small Business Development Center (SBDC): Provides free consulting, business planning support, and funding assistance from experienced advisors at 24 locations across the state.
• Maryland Department of Commerce: Offers grants, tax incentives, and resources for business growth, including global expansion programs and startup incubator connections.
• Maryland Department of Assessments & Taxation (SDAT): Manages LLC formations, business records, personal property tax filings, and provides document authentication services.
• Maryland OneStop Licensing Portal: A centralized system for state and local business licensing, zoning compliance, and industry-specific permit applications.

Federal-related resources 

• Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.
• Internal Revenue Service (IRS): The IRS provides essential information for LLCs, including tax classifications, employer identification numbers (EINs), and filing requirements. Its Small Business and Self-Employed Tax Center offers guidance on tax obligations specific to LLCs.
• U.S. Patent and Trademark Office (USPTO): For businesses looking to protect their intellectual property, the USPTO provides resources on how to apply for patents and register trademarks, which can be essential for safeguarding your unique products or services.
• U.S. Department of Labor (DOL): The DOL's website offers information on federal labor laws, workplace safety regulations, and employee benefits that LLC owners need to consider when hiring staff.

Disclaimer: 

This content is for information purposes only and information provided should not be considered legal, accounting or tax advice or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. cannot warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.