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LLC Cost In Maryland - How Much To Pay In Fees & Taxes in MD

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Last updated February 17, 2023

Written by Dmytro Kondratiev

Editor, lawyer

Disclosure: We earn a commission from some partner links. Commissions do not affect our editors' opinions or evaluations.

If you’ve decided to get engaged in entrepreneurial activity under the roof of a registered legal entity and chosen a limited liability company (LLC) for that purpose, you’ve already made the first right step on your business route.

When you’ve already found out how to start an LLC in Maryland and are aware of all the details, you want to know how much it will cost you. Below, you’ll find complete info on the most common Maryland LLC fees and costs.

How Much Is an LLC in Maryland?

LLC registration is not free and will entangle certain expenses even if you choose to handle the formation process by yourself. The rates and fees vary by state since LLCs are regulated by state laws.

Your LLC cost in Maryland will cover some statutory and regular fees you can’t skip and optional expenses that depend on the added services you might need for your business.

If you think about hiring an assistant to avoid the registration formalities and handle the job for you, an LLC will add less to your formation budget than an attorney. Be aware, though, that there is nothing about LLC filing you can’t do on your own.

LLC Fees in Maryland: Common Charges

The final cost to form an LLC in Maryland and further regular running expenses will depend on your LLC type, the locality you are going to operate in, and the type of activity you will run.

To get an idea of primary Maryland LLC costs waiting for you ahead, take a look at the most common fees you’ll need to pay before, during, or right after formation.

Maryland Online Filing Fee: $150

In fact, LLC formation is as simple as filing the Articles of Organization with the state. This is what you need to legalize your legal entity and bring it to life.

In Maryland, you should submit your LLC statute to the Department of Assessments and Taxation. You can either file an online form or send hard copies by mail. A standard filing fee is $100 plus 3% if you pay via e-check or credit card.

While standard filing might take as long as a few weeks, you can down your waiting time to about 5 days by paying $50 for expedited filing. Note that online registration automatically covers speedy processing and you’ll be charged $150.

Registered Agent in Maryland: $0 - $125

A registered agent is an LLC’s must-have element. It’s a law requirement you should observe, otherwise, your LLC will be considered non-compliant.

The price range varies from paying nothing to $125 and more for two main reasons:

You are entitled to be your own agent which will save you the trouble of searching for other options and cut down the need to pay for this service;
If you decide to delegate the role to someone else, be it an individual or a legal person, you’ll have to pay for the job.

Most often than not, entrepreneurs select professional agent services for their limited liability companies. Those agents:

Are dedicated service providers;
Will diligently handle the task and keep an eye on your company’s good standing;
Ensure your peace of mind;
Won’t cost you a fortune, with annual subscription services costing about $100 - $150;
Provide 10-25% discounts on multi-state orders and multi-year subscriptions.

Maryland LLC Annual Fee: Annual Report: $300

Most states have annual reporting requirements for LLCs to maintain up-to-date business info and keep track of the companies’ compliance. Maryland is not an exception.

Yet, the annual report approach in this state is a bit different. It comes as a part of the Business Personal Property Return for the state to levy taxes on the company’s use of movable property other than real estate.

You should file an annual report each year before April, 15th and pay a fee of $300. It doesn’t cover the related property taxes and is solely a reporting fee. Delays will bring the following penalties:

A primary penalty of 1/10 of 1% of the county assessment;
2% interest for every 30 days of delay after the due date;
The minimum delay fee charged is $30 and the maximum penalty is $500.

You can file an annual report via the Maryland Business Express portal.

Foreign LLC Cost in Maryland: $150

Maryland is one of the states that make no difference in pricing for domestic and foreign limited liability companies formation.

So, whether your start a company from scratch in Maryland or need to get a foreign registration for an entity already formed in some other state, the price will be the same. It’s $100 for mailed applications and $150 for online filing including a $50 expedited processing fee.

Professional LLC Price in Maryland: $100-$150 + License Fees

As the name suggests, a professional limited liability company is formed to deliver a certain type of professional services. Normally, it’s established by a licensed professional and protects its owners from company debts and financial commitments.

Yet, a PLLC doesn’t protect against claims that appeared as a result of professional negligence or mistakes. This is where the personal liability of a service provider arises.

The Maryland PLLC law embraces such professions as:

Architects;
Lawyers;
Doctors;
Public accountants;
Physicians;
Dentists;
Chiropractors;
Psychologists;
Engineers;
Veterinarians.

The professional LLC cost in Maryland is $100 or $150 (for expedited and online filings) plus the cost of an appropriate license one of the members should have in place. The latter costs from $100 to $150 a year in Maryland.

Business License Cost in Maryland: Local Fees

Licensing is a sensitive and complex issue for a limited liability company. Most likely than not, you’ll need more than one license or permit to officially operate your company in Maryland. You’ll need a business license in Maryland, yet, licensing rules will depend on the type of activity you run.

The license fees will vary accordingly. Thus, a trader’s license required for wholesalers and retailers might cost anywhere from $15 to $800 a year depending on the wholesale price of your products. The higher the price, the higher the license fee.

To figure out the types of licenses your Maryland limited liability company will be exposed to, check with:

Maryland's OneStop Licensing System for state permits and their costs;
Comptroller of Maryland for any additional state licenses;
Your local Clerk of the Circuit Court for local licensing requirements and fees.

Maryland LLC Taxes

One of the best features of your Maryland LLC is that it will be free from a state income tax when using default pass-through taxation. Business income taxes are payable on personal tax returns of company owners pro rata to their shares and under their personal tax rates.

Maryland LLC taxes are payable to the state Comptroller’s Office and include:

State income tax at an 8.25% rate for limited liability companies taxed as C-Corps;
15.3% self-employment tax to be paid by LLC members and managers;
6% sales and use tax;
Payroll and FICA taxes for employers. The rates vary by wages.

Other Maryland LLC Costs

While the above-mentioned common costs appear for nearly all LLCs and some of them are regular, there are also optional costs that will arise in case you need some additional service.

Maryland LLC Name Reservation: $25

Many states allow you to reserve the desired company name if you need more time to get prepared for filing. Maryland has this service as well.

Unlike in other jurisdictions, the reservation period in Maryland is 30 days instead of 120 days. The reservation fee is $25. To put the chosen moniker on hold, submit a Name Reservation Application.

If a 30-day period is not enough, you can file for reservation prolongation for the other 30 days by paying $25 more.

Trade Name Registration in Maryland: $25

If you want to operate your Maryland LLC under any other name different from the one mentioned in your formation documents, you can use a DBA (doing business as), fictitious, or so-called trade name.

It also can be used only subject to being available in the state and requires state registration. You should file a Trade Name Application and pay a $25 fee per name (you can use multiple names under a single LLC structure).

Certificate of Status in Maryland: $20

Called a Certificate of Good Standing in other states, this document is issued by the Maryland Department of Assessments and Taxation and costs $20.

Verifying your LLC’s compliance, a Certificate of Status is often required by banks, crediting agencies, and other public organizations and institutions when it’s necessary to prove your business legitimacy and credibility.

Maryland LLC Document Copies: $20

The cost of your Maryland LLC formation document copies is $20 per copy plus $1 per each document page. These copies might be required when opening a bank account for your company, applying for a business loan, signing contracts with vendors and suppliers, etc.

Articles of Amendment in Maryland: $100

If you need to make any changes in your registered business info, be it a company name change, registered agent replacement, or changing your LLC principal address, you should file the Articles of Amendment to formalize those changes.

A regular filing fee is $100. To get your amendments processed faster, you can pay $50 for expedited filing and $5 more to get your amended docs returned.

Certificate of Reinstatement in Maryland:

To bring back a legitimate status to your Maryland LLC that experienced administrative dissolution because of failing to comply with the state rules, you should file a Certificate of Reinstatement with the Department of Assessments and Taxation.

The LLC revival fee is $100 plus $50 if you want to get the process finished faster.

Maryland LLC Dissolution: $100

The cost of terminating your LLC in Maryland is similar to that of formation. Get ready to pay $100 and get your entity dissolved in about 8 weeks or $150 and get it officially terminated in 7 days.

FAQ

Is Maryland LLC registration a worthy choice?

Yes, especially if you have ambitious business plans or your enterprise has already outgrown a disregarded entity format. With an LLC, you get multiple benefits for business and secure asset protection for yourself.

So, despite the fact that the cost to start an LLC in Maryland might be at the higher end, it will pay off in the long run.

What is the LLC filing time in Maryland?

The state has standard and expedited document processing that varies in price. Thus, following a regular process, you’ll have to wait for up to several weeks to get your docs approved.

In the meantime, expedited processing will reduce the timing to 5 days at an added fee.

Do I need to get a business license for a Maryland LLC?

A business license is required, yet, you’ll have to follow local rules and requirements in this concern. The type of license you need will depend upon the industry you work in and the type of business you conduct.

Is there an income tax for a Maryland LLC?

The state won’t levy an income tax for LLCs using default pass-through taxation. Meanwhile, companies that will choose a C-Corp tax status will be exposed to a state tax at a flat rate of 8.25%.

Is it necessary to renew an LLC in Maryland on an annual basis?

To keep your Maryland LLC compliant and legitimate, you’ll have to file an annual report before April, 15th on a yearly basis.

What is the cheapest way to get an LLC in Maryland?

A cheap Maryland LLC is the one you form on your own, without engaging any assistants, consultants, and advisors that will add to your price list and paying for the services you can accomplish by yourself for free.

However, think twice before taking everything on your own shoulders. Some services justify the price and might help save in other areas.

Can a Maryland LLC get tax refunds?

By default, LLCs are not entitled to tax refunds. Yet, companies electing a C-Corp tax status by filing Form 8832 with the IRS can get certain tax refunds.

Can I pay myself a salary from my Maryland LLC?

Basically, LLC members are considered self-employed since they get profit distributions. However, LLCs taxed as corporations can hire their members and pay them normal salaries.

Can I pay for my cell phone from my Maryland LLC?

Cell phone deductions are allowed only to the extent you use your phone for business purposes. To qualify for deductible expenses, the use for business should be over 50% of all phone expenses.

Can I write off my Internet expenses from my Maryland LLC when working from home?

Internet costs are deductible in case you use it predominantly for business, and personal use is minor.

Can I deduct my car expenses from my Maryland LLC?

You can write off business-related costs. Thus, if you use your vehicle for business purposes most of the time, you can deduct entire costs.

Can I write off fuel receipts from my Maryland LLC?

Driving costs might be considered deductible business expenses if you account for the miles you drive for business. Another method is to write them off as a part of general driving expenses.