How to Form an LLC in Maryland

Maryland runs LLC filings through SDAT. Here are the steps, the $100 fee, the resident agent rules and the April 15th annual report.

Record

Filed 2026-10-19

Forming an LLC in Maryland means filing with the state. Maryland Business Express says you file with the Maryland Department of Assessments and Taxation. It is called SDAT. That filing makes your business official in Maryland. If you are still deciding, read should you form an LLC. Sole proprietorships and general partnerships are not separate legal entities like LLCs and corporations. Here is how the process works, step by step.

Step 1: Choose an LLC name that meets Maryland's rules

Maryland's Articles of Organization form has the name rules. The LLC's name must include one of several listed endings, such as LLC or Limited Liability Company. The name must also be distinguishable from other active businesses on file with SDAT.

Not ready to file? You can hold the name first. Maryland's SDAT fee list shows a $25 fee to reserve an LLC name.

Step 2: Appoint a Maryland resident agent

The resident agent is the person or business designated to receive legal papers for the LLC. Maryland's form says the agent's address must be a complete physical address located in Maryland. P.O. Boxes cannot be accepted for the resident agent's address.

The agent must sign to confirm consent to serve as resident agent for the LLC. If a business is the agent, the person signing for it must give their full name and title. Learn more about what this job involves in an LLC's registered agent.

Step 3: Prepare the Articles of Organization

The form asks for a few things. The principal office address of the LLC must be located in Maryland. The business purpose section is optional. If you provide one, it should briefly describe the purpose or activity of the business.

At least one authorized person must sign the Articles of Organization. A return address is not required but is suggested. It is where contact about the filing should be sent.

Filing on paper? Use black ink to print or type clearly. Maryland's form says forms that are difficult to read may be returned.

Step 4: File with SDAT and pay the fee

Maryland's SDAT fee list shows a $100 fee for domestic Articles of Organization. You can file online through Maryland Business Express. It recommends forming your business in Maryland with SDAT online. Its portal can form most Maryland businesses. It can also register out-of-state foreign businesses.

If you cannot file online, you can mail your document to SDAT with the filing fee. Mail the completed form and payment to the State Department of Assessments and Taxation Charter Division in Baltimore. Documents may also be delivered to the SDAT drop boxes at 123 Market Place in Baltimore. Checks or money orders should be payable to the State Department of Assessments and Taxation or SDAT.

In a hurry? Maryland's form says same-day filing costs $425 online. On paper, by drop box or in person, it costs $525. Want more on expedited and same-day service? Maryland SDAT Business Services has it. For a broader look at costs, see the state filing fee for an LLC.

Step 5: Receive your business ID numbers

Your LLC may end up with more than one number. Maryland Business Express says your business receives a special business ID number from SDAT when it becomes active in Maryland. Each agency you register with may give you a different ID number with its own use and purpose.

The Department Identification Number is issued by SDAT when your business is formed. The IRS gives out the Federal Employer Identification Number. It identifies your business for federal taxes. The Central Registration Number is issued by the Maryland Comptroller and used for state tax filings. For the federal piece, see how to get an EIN number and how to apply for an EIN for an LLC.

Step 6: Handle licenses, permits and insurance

Maryland Business Express says your business may need one or more licenses or permits to operate. SDAT points businesses to the Maryland Trader's License as one example. SDAT also points businesses to the Comptroller of Maryland. Read more in business license basics.

Insurance matters too. Maryland Business Express says business insurance protects your business from risks and liability. It also says health insurance gives coverage for your business and employees.

Step 7: File the Annual Report by April 15th

Maryland's form says every Maryland LLC must file an Annual Report/Personal Property Return by April 15th. Maryland says the fastest and easiest way to file annual reports is through the Maryland Business Express. Some business types cannot file their Annual Report or Personal Property Tax Return online. They must use paper forms. See the annual LLC report for more on this yearly task.

Filing matters because of Good Standing. Maryland says a business must file its annual reports every year to stay in Good Standing. It must also pay all required fees and follow all Maryland business laws.

What happens if your LLC is not in Good Standing

Maryland says a business is Not in Good Standing when it has not met the criteria set by Maryland law. Why does this happen? A missed Annual Report or Personal Property Tax Return. Late filing penalties. Or no active resident agent. A business with no resident agent listed must file a resolution by paper with the required fee.

A business that is not in Good Standing and does not fix its status will be shut down, which is called forfeiture. Maryland says a forfeited business cannot legally operate in Maryland. A business must fix any compliance violations to be in Good Standing.

How to check your LLC's standing

Maryland says a business can use the Business Entity Search to verify its standing. The General Information tab shows a business's info and Good Standing status. The Filing History tab lists documents filed on behalf of the business. The Annual Report/Personal Property tab indicates if all required annual reports were filed and whether late fees are owed.

SDAT also offers a good standing checklist among its helpful resources, plus a checklist for new businesses. Its Department of Assessments and Taxation has a checklist. It confirms a business's Active and Good Standing status.

What SDAT cannot help you with

Maryland's form says filing the form with SDAT does not constitute legal advice, and SDAT staff cannot provide legal or tax advice. For federal business taxes, SDAT points businesses to the IRS. For questions beyond filings, talk to a lawyer or a tax professional. For a general overview of the process in any state, see how to form an LLC.