Start an LLC in Maryland
Start a Maryland LLC by filing LLC Articles of Organization with Maryland’s State Department of Assessments and Taxation (SDAT) for $100 if filing by mail or in-person ($155 if filing online).
You can use our free tool to fill out the paperwork right here yourself. Or hire Northwest to do it for you and we’ll provide one year of registered agent service and a free Business Identity—all for $39.
How to Start an LLC in Maryland
A Limited Liability Company (LLC) is a permanent public record. Starting one requires sharing personal information with the government, banks, landlords, vendors, and of course, customers. We provide a Free Business Identity to anyone who needs it—that’s a domain name, website, phone line, email address, and Brand Protection on day one. This helps protect your privacy and keep you in control of your intellectual property.
1. Name Your LLC
An LLC in Maryland needs a name. It should be easy for customers to remember, but it must also follow state laws for Maryland LLCs. Your name has to be unique, for one thing. To make sure you’re on the right track from both a branding and legal standpoint:
- Use SDAT’s Business Entity Search to make sure no other business is using your preferred business name.
- Look up available domain names and aim for one that either matches or complements your preferred business name.
- At the federal level, check the U.S. Patent and Trademark Office database to make sure no one’s using a trademark close to your name.
Your name should also have an identifier like limited liability company, L.L.C., LLC., L.C. or LC. You can’t use a word like “corp” that suggests your LLC is another type of entity.
Yes, you can. If your preferred name is available, but you’re not ready to form your LLC, you can reserve it for 30 days by filing a Corporate Name Reservation form ($25) with SDAT.
Any name you operate your Maryland limited liability company under that isn’t your LLC’s legal name is a DBA (doing business as). Maryland calls DBAs trade names, and it costs $25 to get one. To register your Maryland DBA, you’ll need to file a Trade Name Application with the SDAT.
Note: DBAs need to be renewed every five years.
We show you how to get a Maryland DBA for your business.
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2. Register Your Domain Name
A website domain that matches your business name will improve search engine visibility, driving more customers to your doorstep.
Northwest is a Business Identity provider, which means you can get a domain name to match your business name, website hosting, and a professional website, hosted and secured by us. Want to start talking to suppliers, advertisers, customers, and more? Set up business email addresses and a separate local phone number so you can protect your data and keep your communication professional.
Want more? Our friendly Corporate Guides® can help you with any questions you might have about a filing, form, or even walk you through how our services can help your business.
3. Appoint a Registered Agent
Maryland LLCs are required to have a Maryland registered agent listed on their state formation documents (Articles of Organization). Maryland calls them resident agents, but the terms are interchangeable. Your registered agent could be you, another Maryland resident, or a professional service like Northwest. Registered agent requirements are outlined in MD Corp & Assn Code § 7–205.
Maryland registered agents are required to:
- Keep regular business hours (9 AM to 5 PM) at a physical address (no P.O. Boxes) in Maryland.
- Accept correspondence from the Maryland SDAT and legal mail on behalf of your business.
The registered agent you pick will become part of your LLC’s business identity, aka the image you present to potential customers, clients, and anyone else who encounters your company. You start building a business identity the minute you form a business.
Yes you can, but should you? Acting as your own registered agent means your name and address will become part of Maryland’s public record. You’re basically laying out a welcome mat for spammers and scammers to snatch your personal information.
When you hire Northwest, we’ll list our name and business address on your LLC filings wherever allowed, helping to keep your personal info on lock.
Yes. To change your Maryland registered agent you’ll need to file a Resolution to Change Principal Office or Resident Agent form ($25) by mail or in person with Maryland’s SDAT.
4. Submit LLC Articles of Organization
Limited liability companies in Maryland are officially formed when your Maryland Articles of Organization are filed with the state. To successfully complete and submit the Articles of Organization, you’ll need to provide the following information:
- Company name: Include an indicator like LLC or limited liability company.
- Purpose: Most businesses keep this section general with a statement like: the purpose of this LLC is to engage in any lawful activity in the state of Maryland.
- LLC address: List your LLC’s Maryland street address.
- Resident agent and address: The name and address of your registered agent.
- Execution: The person authorized to sign and submit your LLC’s Articles of Organization. Hire Northwest and we’ll sign here.
- Resident agent signature: Signature of your registered agent.
- Return address: List the address you want to use for any correspondence from the state. This can be your registered agent’s address.
Make sure all of the above information is accurate before you submit your Articles of Organization.
Maryland’s SDAT accepts filings by mail, in-person, and online. In-person filings can be submitted to a drop box in the lobby of the SDAT office.
Mail and in-person:
Department of Assessments and Taxation
700 East Pratt Street
2nd Floor, Suite 2700
Baltimore, MD 21201-2392
Online:
Maryland Business Express
A limited liability company in Maryland has its own legal existence, separate from the people who formed it. If an LLC can’t pay a debt, its owners aren’t usually required to dip into their personal assets to pay it. This is called limited liability, and it’s the main benefit of starting an LLC. LLC owners also benefit from flexible management options, simple tax structure, and the credibility the LLC name can bring to a business.
Learn Why You Should Turn Your Sole Proprietorship into an LLC.
It all depends on how you file. Maryland LLC formation costs $100 if you file by mail or in-person. Filing online costs $155.
Your filing method determines how long it takes to form your Maryland LLC.
- Mail and in-person filings: 6-8 weeks (add $50 for expedited 10-day service)
- Online filings: 7-10 business days (add $325 for three-hour expedited service)
Note: If you’re in a hurry, you can hand-deliver your documents to the Maryland SDAT office and pay $425 for two-hour processing. You’ll need to be in line no later than 4:15 PM.
The best way to keep your information out of the public eye is to hire a professional business formation company like Northwest. Find out how Northwest can help you live privately with an LLC.
Create an Operating Agreement
Your operating agreement acts as the foundation for how your LLC operates. Operating agreements are internal documents that should address things like the roles of members, revenue sharing, removing members, and even procedures for dissolving the LLC. In the event of a disagreement among LLC members, the operating agreement will act as the road map for resolving it.
Use our free Maryland LLC operating agreement template or hire a lawyer to draw one up for you.
No. Maryland doesn’t legally require an LLC operating agreement, but it’s just good business practice to draw one up.
No, but you should draw one up anyway. That’s because you’ll likely need an operating agreement to open a business bank account, which is an important step in keeping your personal and business finances separate, helping to maintain your LLC’s limited liability.
Get an EIN
You’ll need an EIN (Employer Identification Number) for business tax filings. You can apply for an EIN from the IRS for free, either online by mail.
If you’d rather not deal with the IRS, you can also hire Northwest to get an EIN on your behalf.
Yes, you need a business bank account to create separation between you and your business. Banks have different requirements for opening business accounts, but here’s what you’ll most likely need in order to open a business bank account:
- A copy of your Maryland Articles of Organization
- Your LLC’s EIN
- LLC operating agreement
- LLC Resolution to Open a Bank Account (if your LLC has multiple members)
The most simple way to fund the LLC is for each LLC member to make an initial financial contribution to the LLC’s bank account. The percentage of the business that each member of the LLC owns can be reflected and recorded on the membership certificate. For example, if a two member LLC has each member contribute $25,000, they’d each have a 50% membership interest in the LLC.
File Your Annual Report
Maryland LLCs must file an annual report with SDAT by April 15th. With a base fee of $300, the report isn’t cheap. If you are late in filing your annual report, Maryland will penalize your LLC (penalties range from $30 to $500), and your LLC may even lose it’s good standing or be dissolved by the state. You’ll never miss a filing when you hire us to file your annual report for you.
But that’s not all. If your LLC owns, leases, or uses personal property in the state or has a trader’s license (required for buying and re-selling goods), you will need to submit a Maryland Personal Property Tax Return with your annual report and pay the applicable personal property tax. Your Business Personal Property Taxes will be determined by the value of your business property and the county (or counties) in Maryland where you do business.
Yes. Annual reports are due to Maryland’s SDAT no later than April 15th. Late filings may incur fines or dissolution of the LLC by the state.
Maryland LLCs are treated, by default, as pass-through entities. This means that the LLC doesn’t pay taxes, but rather the profits from the business pass-through to the members, who then report their share of the profits on their personal tax filings. LLCs are also subject to the federal self-employment tax rate (15.3%). LLCs can also elect S-Corp or C-Corp status.
Learn all about S-Corp vs LLC tax designation.
*This is informational commentary, not advice. This information is intended strictly for informational purposes and does not constitute legal advice or a substitute for legal counsel. This information is not intended to create, nor does your receipt, viewing, or use of it constitute, an attorney-client relationship. More information is available in our Terms of Service.
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