$400 to form your Maryland LLC

Maryland LLC Cost: $100 Filing + $300 Annual Report (2026)

Forming an LLC in Maryland costs $100 to file Articles of Organization with the State Department of Assessments and Taxation (SDAT) and $300 per year for the annual report, which Maryland calls the “Annual Report and Personal Property Tax Return.” Total year-one cost: $400. Five-year cost of ownership: $1,600. Maryland is one of the more expensive states for LLC ownership because the $300 annual fee is mandatory regardless of whether the LLC owns any tangible personal property in Maryland, it’s effectively a flat $300/yr privilege tax dressed up as a property tax return.

Reviewed by LLC Formation Cost Editorial Team, fact-checked against primary government sources • Last updated 2026-05-30 • 5 primary government sources cited

TL;DR

Maryland LLCs file Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT) for $100. The annual report, formally called the “Annual Report and Personal Property Tax Return,” is due by April 15 each year and costs $300 minimum. Even LLCs that own zero tangible personal property in Maryland still owe the $300 minimum filing fee; LLCs that do own Maryland tangible personal property may owe additional county-level personal property tax on top of the $300. Maryland has no separate corporate franchise tax for LLCs (the personal property tax return functions as the privilege tax). Online filings via Maryland Business Express are processed in 7-10 business days standard; expedited service is $50 for 7-day or $100 for next-business-day turnaround. Maryland is one of the few states allowing anonymous formation, member and manager names are not required on the public Articles of Organization (though they appear on the annual report).

Maryland LLC cost breakdown (2026)

Line item	Cost	Source
Articles of Organization	$100	dat.maryland.gov
Annual Report and Personal Property Tax Return (minimum)	$300/yr	dat.maryland.gov
Expedited processing 7-day (optional)	$50	egov.maryland.gov
Expedited processing next-business-day (optional)	$100	egov.maryland.gov
Franchise tax	$0 (PPT functions as privilege tax)	marylandtaxes.gov
Registered Agent service (optional)	$50-$200/yr	private market
Year 1 total (DIY, online)	$400	($100 + $300)
Year 1 with expedite	$450-$500
Year 2+ ongoing (DIY)	$300/yr
5-year total (DIY)	$1,600	($100 + $300 × 5)

All figures verified 2026-05-30 from primary Maryland state sources.

Why Maryland’s $300 is mandatory regardless of property

Maryland’s annual report fee is structured differently from most states. Formally called the “Annual Report and Personal Property Tax Return,” it serves three functions in one filing:

1. A privilege fee for maintaining the LLC’s “active and in good standing” status with SDAT: $300 minimum, regardless of any property held.
2. A personal property tax return: LLCs that own tangible personal property in Maryland (furniture, equipment, inventory, machinery) declare it here. County-level personal property tax is then assessed based on the declared value and local tax rates.
3. A registered-agent and member-or-manager information update: Annual confirmation of the entity’s contact details.

The critical detail: the $300 minimum applies even to LLCs with zero Maryland tangible personal property. A passive holding LLC with no Maryland office, no inventory, and no equipment still owes $300 every year. This is functionally a flat $300 privilege tax, not a property-tax-only structure. Maryland’s tax authority (Md. Tax-Property Code § 8-104) explicitly establishes the minimum, regardless of property holdings.

Counties additionally levy personal property tax on the declared property at varying rates (Baltimore City around 2.248%, Montgomery County 1.819%, Prince George’s County 2.402% in 2024-2025), but only if the LLC declares property. Service-based LLCs with no Maryland tangibles owe just the flat $300 to SDAT.

Compared to peer states, Maryland’s $300 is high but not extreme. Delaware charges $300 (LLC tax), Massachusetts charges $500 (annual report), and Rhode Island charges $400 (minimum tax + $50 report = $450). Maryland sits in the same upper-middle cost tier. Source: Maryland Tax-Property Code Title 11, verified 2026-05-30.

Filing steps (DIY, no service)

1. Pick a name, search availability at the Maryland Business Express Name Search. Names must include “Limited Liability Company,” “L.L.C.,” or “LLC.”
2. Designate a resident agent, must have a Maryland street address (Md. Corporations & Associations Code § 4A-210). You can act as your own resident agent if you reside in Maryland.
3. File Articles of Organization, $100 fee. File online at Maryland Business Express or by mail to State Department of Assessments and Taxation, 301 W Preston Street, Room 801, Baltimore, MD 21201.
4. Get a federal EIN, free at irs.gov.
5. Draft an operating agreement, not required by Maryland law but recommended. Md. Corporations & Associations Code § 4A-402 explicitly recognizes operating agreements as binding between members.
6. Register for Maryland state taxes, sales and use tax license ($0) via marylandtaxes.gov if selling tangible goods, employer withholding registration if hiring employees. Use the Combined Registration Application.
7. Check local business licenses, Baltimore City, Montgomery County, and other jurisdictions may require separate business licenses or occupational permits.
8. Open a business bank account, Maryland banks (M&T Bank, Sandy Spring Bank, Truist, PNC Maryland) require the filed Articles, EIN letter, and operating agreement.
9. File FinCEN BOI report, required under the federal Corporate Transparency Act within 30 days of formation. Free at fincen.gov/boi.
10. Calendar the Annual Report and Personal Property Tax Return (April 15), file online via Maryland Business Express. $300 minimum.

Standard processing: 7-10 business days for online filings via Maryland Business Express. Expedited service: $50 for 7-day or $100 for next-business-day turnaround. Mail filings can take 6-8 weeks. Source: Maryland SDAT Processing Times, verified 2026-05-30.

Page-unique facts

• The Maryland $300 annual fee applies to ALL LLCs regardless of personal property holdings. This is a flat minimum, not a calculated tax. An out-of-state holding company qualified as a foreign Maryland LLC with zero tangible property in Maryland still owes $300. Source: Md. Tax-Property Code § 11-101.
• Maryland allows anonymous LLC formation. Member and manager names are not required on the public Articles of Organization (Md. Corporations & Associations Code § 4A-204). However, the annual report does require principal officers/managers to be listed, so anonymity is limited to the formation document itself.
• The Annual Report is filed with SDAT, not the Maryland Secretary of State. Maryland is one of only three states where LLC filings go to the Department of Assessments and Taxation rather than the Secretary of State (Florida and Alaska use similar structures). The Maryland SOS handles only notary, lobbyist, and election-related filings.
• Maryland Series LLCs were authorized in 2011. Under Md. Corporations & Associations Code § 4A-307, Maryland allows Series LLCs with one master filing covering multiple internal series. Annual reports are filed per series, though, so a Series LLC with five sub-series owes 6 × $300 = $1,800/yr minimum.
• The annual report can be filed up to 90 days late with a penalty. A $30 late fee applies if filed within 90 days of April 15; beyond 90 days, the LLC is administratively forfeited and must file for reinstatement ($100) plus all back annual reports and fees.

FAQ

Why does Maryland call its annual report a “Personal Property Tax Return”?

Maryland combines its annual entity report and personal property tax declaration into a single filing called Form 1 (for LLCs). The $300 minimum represents the privilege of operating as an LLC in Maryland and is owed regardless of personal property holdings. LLCs that own tangible personal property (furniture, equipment, inventory) in Maryland additionally report and pay county-level personal property tax through the same form. The structure dates to a 1973 administrative consolidation by SDAT to reduce filing burden, though the practical effect is that filers without property still owe the flat $300. Source: Maryland SDAT Form 1 instructions.

Can I avoid the $300 Maryland annual fee?

Not if you maintain Maryland LLC status. The $300 minimum is a non-waivable floor for active Maryland LLCs and qualified foreign LLCs. The only way to avoid the $300 is to dissolve the Maryland LLC (Articles of Cancellation, $0 fee with SDAT but requires tax clearance) or, for foreign LLCs, file Articles of Cancellation of Foreign Qualification. Both end the entity’s Maryland status. Source: Md. Tax-Property Code § 11-101, verified 2026-05-30.

When is my Maryland LLC annual report due?

By April 15 each year, regardless of formation date. Unlike states using anniversary-based deadlines (Florida, Virginia, Wyoming), Maryland uses a uniform statewide deadline. An LLC formed January 2026 owes its first annual report by April 15, 2027. An LLC formed November 2026 also owes its first annual report by April 15, 2027 (just five months later). Missing the deadline triggers a $30 late fee within 90 days, then administrative forfeiture beyond 90 days. Source: Maryland SDAT Annual Filings.

Does Maryland charge a separate franchise tax on LLCs?

No. The $300 Annual Report and Personal Property Tax Return functions as Maryland’s privilege/franchise tax equivalent. There is no separate corporate franchise tax for LLCs taxed as partnerships. LLCs electing C-corp status owe Maryland corporate income tax (8.25% flat in 2026) in addition to the $300 annual report. Source: Maryland Comptroller, business taxes.

Can I form an anonymous Maryland LLC?

Partially. Maryland’s Articles of Organization (Md. Corporations & Associations Code § 4A-204) do not require member or manager names, the public formation document lists only the entity name, principal office address, resident agent name and address, and the organizer’s signature. However, the annual report (Form 1) does require principal officer/manager information. So the formation document is anonymous, but the annual filings are not. For more comprehensive statutory anonymity, Wyoming, New Mexico, and Delaware are stronger jurisdictions. Source: Maryland SDAT Articles of Organization.

How fast is Maryland LLC formation?

Online filings via Maryland Business Express are processed in 7-10 business days standard. Expedited service costs $50 for 7-day turnaround or $100 for next-business-day. Mail filings can take 6-8 weeks. Maryland’s processing is mid-pack nationally, faster than California (21 days) but slower than Florida (5 days) or Kansas (same day). Source: Maryland SDAT Processing Times.

Maryland tax structure for LLC pass-through profits

Maryland’s individual income tax (graduated 2% to 5.75% in 2026, plus local “piggyback” taxes ranging 2.25% to 3.2% by county) applies fully to Maryland-resident LLC members on their share of pass-through profits. Combined state-plus-local effective rates often range 4.75% to 8.95% depending on county of residence: Baltimore City charges 3.2% local piggyback, Montgomery County 3.2%, Prince George’s County 3.2%, Anne Arundel 2.7%, Howard 3.2%, the rural counties typically 2.25%-2.83%. Non-resident members owe Maryland non-resident income tax (8% flat) on Maryland-source pass-through profits, filed via Form 505. Multi-member LLCs taxed as partnerships file Form 510 to report Maryland-source income. For high-income Maryland-resident LLC owners in Montgomery, Howard, or Baltimore counties, the combined state-plus-local marginal rate on pass-through income exceeds 8.95%, among the highest in the country. This is in addition to the $300 annual Form 1 fee at the entity level. For Maryland-resident LLC owners, the personal-income-tax cost typically dominates the entity-level cost by an order of magnitude. Source: Maryland Comptroller individual income tax.

State quirk: SDAT, not SOS

Maryland is one of only three states (Florida, Alaska, Maryland) where LLC filings go to a non-Secretary-of-State agency. The Maryland State Department of Assessments and Taxation (SDAT) handles all entity formations, annual reports, and personal property taxation in a consolidated structure dating to a 1959 administrative reorganization. The Maryland Secretary of State handles notary public commissions, lobbyist registrations, and election-related filings, not business entities. This matters in practice because (1) Google search results frequently point to “Maryland Secretary of State LLC” pages that don’t exist; correct destination is dat.maryland.gov; (2) tax-clearance certificates for LLC dissolution come from SDAT, not the Comptroller; and (3) annual reports are filed through Maryland Business Express (a SDAT portal), not through a SOS portal. Filers used to other states’ SOS-centric processes should adjust their mental model: Maryland’s SDAT is the equivalent of “the SOS plus the local tax assessor combined.” Source: Maryland SDAT About Us.

Common mistake in Maryland

The most common Maryland LLC mistake is missing the April 15 annual report deadline and discovering, months later, that the LLC has been administratively forfeited. Filers used to anniversary-based deadlines (Virginia, Florida, Wyoming) assume they have until the formation month to file. They don’t. April 15 is a uniform Maryland deadline regardless of formation date, an LLC formed in November still owes its first annual report by April 15 of the following year. Missing by 90 days triggers automatic forfeiture and requires a $100 reinstatement plus all back fees. Calendar April 15 as a hard deadline from the day of formation.

A second mistake involves Series LLC owners who fail to recognize the per-series filing obligation. Under Md. Corporations & Associations Code § 4A-307, each series within a Maryland Series LLC must file its own annual report with SDAT and pay the $300 minimum fee, the “one master filing covers all series” benefit applies only to the initial Articles of Organization, not to ongoing annual compliance. A Series LLC with five sub-series owes 6 × $300 = $1,800 annually for compliance, plus county-level personal property tax on any tangible property held by each series. Series LLC owners moving to Maryland from Delaware (where the single master filing model is similar but annual reports are consolidated) often discover this distinction the hard way after their first SDAT correspondence cycle. Before forming a Maryland Series LLC, verify whether the multi-series structure is actually necessary or whether a single LLC with internal recordkeeping would suffice.

When a Maryland LLC makes sense vs. neighboring alternatives

Maryland’s $400 first-year cost ($100 + $300) and $300/yr recurring cost put it in the upper-middle tier nationally. Compared to neighboring DMV-region alternatives:

• Maryland vs. Virginia, Virginia ($100 filing + $50 annual = $350 5-year) is dramatically cheaper over five years. For DMV-area operators not requiring Maryland nexus, Virginia is usually the better choice. Virginia LLC owners can lease space and operate in Maryland by foreign-qualifying for $100 (initial) + $50/yr ongoing.
• Maryland vs. Delaware, Delaware ($90 filing + $300 annual = $1,590 5-year) is comparable to Maryland in long-run cost but offers Court of Chancery jurisdiction and institutional-investor credibility. Use Delaware for VC-track companies, not for routine operating businesses.
• Maryland vs. DC, DC ($99 filing + $300 biennial = $999 5-year) is similar to Maryland in 5-year cost. DC has slower processing and limited anonymity options. For DC-area operators, Virginia is often the smartest pick.
• Maryland vs. Pennsylvania, Pennsylvania ($125 filing + $7/yr decennial = $160 5-year) is dramatically cheaper. Pennsylvania-resident operators near the Maryland border may prefer PA formation with Maryland foreign qualification.
• Maryland vs. Wyoming, Wyoming ($100 + $60/yr = $400 5-year DIY) is cheaper and offers stronger anonymity. For non-Maryland operators looking for cost optimization with anonymity, Wyoming is the natural alternative.

For Maryland residents and Maryland-located businesses, the domestic Maryland LLC is the natural choice; the $300/yr Form 1 is unavoidable for active Maryland LLCs. For DMV-area operators with flexibility, Virginia formation produces dramatic savings over a 5-year horizon ($250+ saved). Run the math based on actual nexus and operating footprint, not just formation cost.

Sources

1. Maryland State Department of Assessments and Taxation, last verified 2026-05-30
2. Maryland Business Express Filing Portal, last verified 2026-05-30
3. Maryland Corporations and Associations Code Title 4A (LLC Act), last verified 2026-05-30
4. Maryland Comptroller Business Taxes, last verified 2026-05-30
5. IRS Publication 3402, Taxation of Limited Liability Companies, last verified 2026-05-30

About the author

Aissam Baidi is the founder and researcher behind llcformationcost.com. He verifies Maryland LLC fees directly from dat.maryland.gov on a quarterly cycle. Connect on LinkedIn.

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Not legal advice. Estimates based on publicly available data from each state’s Secretary of State office. Consult a licensed attorney in your jurisdiction.