How to Start an LLC
in Maryland

Maryland charges a $100 filing fee for Articles of Organization (paid to the Maryland State Department of Assessments and Taxation, or "SDAT"). That is the only mandatory state cost to form the LLC. Expedited processing is optional and costs an extra $50 (7 business day turnaround). Eleet AI charges $249 all-inclusive — that covers the $100 state fee, formation filing, Articles of Organization prep, and first-year resident agent service. National services like LegalZoom charge $0–$249 for formation but add the $100 state fee, resident agent ($125–$299/yr), and various upsells separately — real total is typically $325–$700+.

Online filings through the Maryland Business Express portal are typically processed in 5–7 business days. Mail filings can take 6–8 weeks during peak periods — Maryland is notorious for slow paper-filing backlogs. Expedited processing (+$50) guarantees 7 business days for both online and mail filings. Eleet AI files online and typically has Articles of Organization approved in 5–7 business days; pick expedited if you need the guarantee.

SDAT stands for the Maryland State Department of Assessments and Taxation. Unlike most states, Maryland does not file LLC formation documents through the Secretary of State — SDAT handles all business entity filings, property assessments, and the annual Personal Property Return. You'll interact with SDAT at every stage of your LLC's life: formation, annual report, amendments, and eventual dissolution. The SDAT online portal is called Maryland Business Express (egov.maryland.gov/BusinessExpress).

Every Maryland LLC must file a combined Annual Report + Personal Property Return (Form 1) with SDAT by April 15 each year. The filing fee is $300 annually. If your LLC owns business personal property in Maryland (equipment, inventory, furniture), you also report that value on the same form — it may trigger county-level personal property tax. Missing the April 15 deadline results in a $30 late fee and eventual forfeiture of your LLC charter. Maryland does not have a separate Franchise Tax on LLCs — the $300 Annual Report fee is the equivalent.

Yes. Every Maryland LLC must designate a "resident agent" (Maryland's term for what most states call a registered agent). The resident agent must have a physical street address in Maryland (no P.O. boxes) and be available during business hours to accept legal documents, service of process, and SDAT correspondence. You can serve as your own resident agent if you live in Maryland. Most owners use a professional service for privacy and reliability. Eleet AI provides a licensed Maryland resident agent and includes first-year resident agent service with every Maryland LLC formation.

Yes. Maryland does not require LLC members or managers to be Maryland residents. You can form a Maryland LLC from any state or country. You will need a resident agent with a physical Maryland street address — this is where SDAT and the courts will send legal notices. Eleet AI provides a licensed Maryland resident agent and handles the Articles of Organization filing on your behalf, so non-residents can form an MD LLC without ever setting foot in the state.

Articles of Organization is the official document filed with Maryland SDAT to legally create your LLC. The form requires: your LLC name (must include "Limited Liability Company", "L.L.C.", or "LLC"), the business purpose, the principal office address, resident agent name and physical Maryland address, and the signature of an authorized person. Once SDAT approves the filing, your LLC legally exists — you'll receive a stamped Certificate of Organization as proof of formation, which banks and other government agencies will ask for.

After SDAT approves your Articles of Organization: (1) Apply for an EIN at IRS.gov (free, takes 5 minutes online), (2) Open a business bank account using your EIN and stamped Articles, (3) Draft an operating agreement defining member roles, profit distribution, and decision-making, (4) Register with the Maryland Comptroller if you have sales tax or employee withholding obligations (comptroller.marylandtaxes.gov), (5) Check whether your industry or county requires a local business license (most Maryland counties require a local license). Mark April 15 on your calendar every year for the Annual Report + Personal Property Return ($300).

Maryland is a reasonable choice if you live or do business in Maryland. Formation costs are moderate ($100 filing fee), and the legal environment is business-friendly with a mature body of LLC case law under Title 4A of the Corporations and Associations Article. However, Maryland has a higher state income tax burden (2%–5.75% plus local county income tax of 2.25%–3.20%) than many neighboring states, and the $300 annual fee is higher than states like Delaware ($300 franchise tax for corporations, $0 for LLCs is not accurate — Delaware LLCs pay $300 annual). If you do not live or operate in Maryland, forming your LLC in your home state is usually better — forming out-of-state triggers "foreign qualification" requirements that can double your compliance costs.

A Maryland LLC has pass-through taxation by default — profits flow directly to your personal tax return, and you pay no separate corporate income tax (though you can elect S-Corp or C-Corp tax treatment). Corporations (specifically C-Corps) pay Maryland's 8.25% corporate income tax on business profits, then shareholders pay personal income tax on dividends — "double taxation." LLCs also require less formality: no board of directors, no annual meetings, no corporate minutes required. For most small businesses, the LLC is the better choice. Choose a corporation only if you plan to raise venture capital or issue multiple classes of stock.