Business Formation / LLC Maryland

How Much Does It Cost to Start an LLC in Maryland?

📝 Initial Formation Costs

• Articles of Organization: $100 (mandatory)
  This fee is required to officially register your LLC with the Maryland State Department of Assessments and Taxation (SDAT). Expedited Processing: $50–$425 (optional)
  For faster processing, Maryland offers expedited services ranging from $50 for standard expedited processing to $425 for two-hour rush service. 

• Name Reservation: $25 (optional)
  If you wish to reserve your desired LLC name before filing, you can do so for 30 days. 

• Trade Name (DBA) Registration: $25 (optional)
  If you plan to operate under a different name than your LLC's legal name, you'll need to register a "Doing Business As" name. 

🔄 Ongoing Annual Costs

• Annual Report & Personal Property Return: $300 (mandatory)
  Due by April 15 each year, this filing keeps your LLC in good standing with the state. 

🛡️ Additional Optional Costs

• Registered Agent Service: $0–$300/year
  You can act as your own registered agent at no cost, or hire a professional service, which typically ranges from $99 to $300 annually. 

• Operating Agreement: $0–$500
  While not required, drafting an operating agreement is recommended to outline the management structure and operating procedures of your LLC.

• Certificate of Status: $20 (optional)
  This document verifies that your LLC is in good standing with the state and may be required by banks or other institutions. 

💰 Estimated Total Costs

• Minimum Startup Cost: $100
  (Filing Articles of Organization)

• Typical Startup Cost with Optional Services: $150–$225
  (Including name reservation and expedited processing)

• Annual Maintenance Cost: $300–$600
  (Annual report plus optional registered agent service)

📌 Additional Considerations

• Business Licenses and Permits: Costs vary depending on your business type and location. Check with local city or county governments for specific requirements.

• State Taxes: Maryland LLCs are generally pass-through entities for tax purposes, but you may be subject to state income tax, sales tax, or franchise tax depending on your business activities.

• Federal EIN: Obtaining an Employer Identification Number (EIN) from the IRS is free and necessary for tax purposes.

🛑 What additional costs am I responsible for?

In addition to our fee, you will be potentially responsible for the costs of some or all of the items below if applicable.

1. Licenses 
   
2. Filing Fees
3. Reports
4. Name Reservations
5. Articles of Organization