How to start an LLC in Maryland in 2024

LLC is short for limited liability company. In this guide, we review the steps and costs to start an LLC in Maryland and how to maintain your Maryland LLC once it’s formed. These steps include.

• Picking your LLC business name.
• Selecting a registered agent.
• Creating an operating agreement.
• Filing your articles of organization.
• Obtaining professional licenses (if required).
• Filing annual reports and tax returns.

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Northwest Registered Agent

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$39

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6 steps to start an LLC in Maryland

1. Choose your LLC business name

The first step to starting a Maryland LLC is choosing a name. Your business name should include the terms LLC, Limited Liability Company, or L.L.C. to denote the type of business entity. You cannot include the terms Inc., Corporation, Corp or Incorporated in your name. It also should not include words that imply your business offers a product or service it is not authorized to, such as the word “bank” if your LLC is not a bank. 

To determine if your chosen name is available, use Maryland’s business entity search tool. Once you input a name, it will tell you whether it’s already in use in Maryland.  Then search the U.S. Patent and Trademark Office database to ensure the name is not federally protected against infringement. Additionally, look for your chosen name on popular search engines like Google and Bing to double-check that it’s unique. 

If you’ve decided on a unique name but are not ready to form your LLC, you may reserve your business name for up to 30 days by filling out a name reservation application. On it, you must provide your chosen unique name, the day you wish your reservation period to begin, your name and your business’s address. Finally, you must sign the form and pay a $25 name reservation fee.  

2. Select a registered agent

A registered agent is a designated person or company responsible for receiving legal notices for your business. For example, if your business is sued, the registered agent accepts the legal paperwork from a process server.

You can act as your own registered agent, but, to do so, you must be present at the address listed for your registered agent during all local business hours throughout the year, with no leaving for business travel or sick days. You must also be 18 years of age or older. 

By hiring a registered agent service, you can enjoy the following benefits: 

• Flexibility: You can leave your business premises during regular business hours while still fulfilling your legal obligations regarding the reception of legal documents during business hours. 
• Privacy: If you act as your own registered agent, your name and address must be publicly listed for your LLC. If you hire a registered agent service, you can list its contact information, keeping your personal information off public databases.
• Reputation management: When acting as your own registered agent, embarrassing paperwork, such as notices you’re being sued, could be delivered to your business in front of customers or employees. Hiring a registered agent will deliver such paperwork to the registered agent services address, and you will be alerted by email to view it on an online portal.
• Deadline management: Many registered agent services help you keep up with filing deadlines by alerting you to them and instructing you on how to meet them. 
• Across-state coverage: If you plan on expanding your business to another state, you need a registered agent in all states where you do business. Most reputable registered agent services have offices in all 50 states, so you can remain local but be covered across state lines. 

Read our best registered agent service guide to find the right provider to meet your needs.

3. Create an operating agreement

Even if it’s not required by law, an operating agreement is a helpful document to explain how your LLC will operate. It overrides the default state rules on how your LLC should operate, allowing you to run your business the way you want. It also provides guidelines for dispute resolution when your members disagree and protects the limited liability status of your business.

Your LLC operating agreement should include the following information:

• LLC identifying information: Include the LLC’s name, address and members’ names and contact information.
• Registered agent: Include the name and contact information of your LLC’s designated registered agent.
• Statement of intent: Describe the business’s main product or service and its commitment to operate according to Maryland state laws.
• Operating period: If you plan to maintain your business indefinitely, say so, along with the intended start date or action that signifies the start of the business.
• Tax treatment: Specify your LLC’s tax election. By default, a single-member LLC is treated as a pass-through entity. With this tax election, members claim their share of the profits (based on ownership percentage) on their personal tax returns. An LLC owner may also choose S-Corporation taxation. 
• Financial matters: Specify each member’s ownership percentage based on their capital contributions and outline how profits and losses will be distributed.
• LLC member admission guidelines: Outline the process of adding a new member or partner to your LLC.
• Company dissolution: Outline the process for dissolving your LLC. You might, for example, dissolve it through a unanimous vote of current LLC members. 
• Member rights and responsibilities: Provide an overview of each member’s voting rights and operational responsibilities, including when they should attend meetings, the management structure and the means of communication among members in select circumstances (such as when voting). 

Rocket Lawyer, Bizee and LegalZoom offer free operating agreement templates. However, given that this document is legally binding and serves as an operational foundation for your LLC, we recommend you consult a business attorney before your members sign it to ensure it meets your unique business needs and requirements. Rocket Lawyer and LegalZoom both provide access to legal consultations for a fee. 

4. File your articles of organization

To make your LLC official in Maryland, submit your articles of organization. To file your articles of organization form, you need the following information: 

• The name of your LLC. 
• The purpose of your filing. 
• Your LLC’s address. 
• Your LLC’s registered agent and address. 
• The signature of your LLC’s registered agent. 
• Your mailing address. 

Maryland LLCs must first create an online account with Maryland business express. Then you can file your form online through the Maryland business express portal. It will cost $100 to file your LLC articles of organization. Expedited processing costs $50 more, and rush processing costs an additional $325 (when filed online). Paying by eCheck incurs a $3 fee, while paying by credit card or PayPal requires a 3% fee.

New LLC reporting requirement alert 

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new reporting requirement for all non-exempt LLCs starting on January 1, 2024. 

The requirement is called the Beneficial Ownership Information (BOI) report and it is estimated to only take about 20 minutes to complete. 

Here’s what you need to know:

• LLCs formed before January 1, 2024 have until January 1, 2025 to file.
• LLCs formed between January 1, 2024 and January 1, 2025 have 90 days to file from the confirmed date of the businesses’ registration.
• New LLCs formed after January 1, 2025 will have 30 days to file from the confirmed date of formation.

For all details, FAQs and to file, visit FinCEN’s BOI website. 

5. Acquire any required licenses and permits

Depending on your industry, you may need business licenses or permits to operate your LLC. To learn if your business needs a business license, visit the state of Maryland’s types of business licenses page. Look through the list of industries. If you see one related to your business purpose, click on it to learn its eligibility requirements, how to apply and any application fees.

For example, if you are a construction company, click “Construction license.” The drop-down section reveals who should apply for this license and the fees for obtaining one. It also offers links with more information about the required licenses and where to apply. 

Examples of other business licenses required by Maryland include:

• Liquor licenses.
• Traders’ licenses.
• Chain store licenses.
• Vending machine licenses.
• Scrap metal processor license. 
• Storage warehouse licenses.

You may also be required to apply for local licenses. To find out, contact the clerk of the circuit court in the jurisdiction in which your LLC operates. 

6. File your annual report

Maryland requires you to file an annual report with the Maryland department of assessments. In addition, if you own, lease or use personal property in Maryland or maintain a Maryland trader’s license, you must also file a personal property tax return with your annual report.  These forms are due annually on April 15.

You can file your annual report and personal property tax return (if applicable) using the Maryland business express website. Scroll down to click the “File” tile to get started. The annual report filing fee is $300, plus transaction fees of $3 or 3%, depending on your payment method. Personal property tax returns don’t have an annual fee.

Tip: Starting an LLC can be complicated, and you may encounter legal questions and expenses along the way. Consider working with an LLC business formation service for expert guidance. To find the best LLC formation service for you, read our best LLC formation services guide. 

Cost to start an LLC in Maryland

Starting an LLC in Maryland isn’t free. You’ll have to pay fees upfront and annually. Here’s a snapshot of what expenses to expect:

EVENT	FILING FEE
New business formation	$100
Annual report	$300
Payment processing fee	$3 for eCheck or 3% for cards or PayPal
Expedited processing (optional)	$50
Rush processing (optional)	$325

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Expedited processing allows for same-day registration. Rush processing allows businesses to be created within three hours during most working business days if you file by 2:30 pm local time.

Featured LLC service offers

ZenBusiness

Learn More

Via ZenBusiness’ website

Free version available

Yes

Lowest published package price

$199

Live chat

Yes: Human

LegalZoom

Learn More

Via LegalZoom’s website

Free version available

Yes

Lowest published package price

$249

Live chat

Yes

Northwest Registered Agent

Learn More

Via Northwest’s website

Free version available

No

Lowest published package price

$39

Live chat

Yes

Find the best LLC services for Maryland: Best LLC services

Frequently asked questions (FAQs)