How to Start an LLC in Maryland (2025 Guide)

How to Form an LLC in Maryland in 5 Steps

In order to form your LLC in Maryland, there are certain steps you’ll need to complete:

1. Name Your Maryland LLC
2. Choose a Resident Agent
3. File the Articles of Organization
4. Create an LLC Operating Agreement
5. Get an EIN

Step 1: Name Your Maryland LLC

The first step in forming your Maryland LLC is choosing a name. 

Your LLC’s name should be both memorable and easily searchable, and it must comply with the state’s naming requirements.

1. Important Naming Guidelines for Maryland LLCs:

• Your name must include the phrase “limited liability company” or one of its abbreviations (“L.L.C.,” “LLC,” “L.C.,” or “LC”).
• If you’re planning on starting a benefit limited liability company, your name must include the words “benefit limited liability company,” “Benefit L.L.C.,” “Benefit LLC,” “Benefit L.C.,” or “Benefit LC.”
• Your name cannot include words that could confuse your LLC with a government agency (“FBI,” “Treasury,” “State Department,” etc.).
• Your LLC’s legal name cannot contain language that states or implies your business has been organized for a purpose other than that stipulated in your Maryland Articles of Organization.
• Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
• Your name must be distinguishable from all other Maryland business entities, including limited liability companies, limited liability partnerships, limited partnerships, and corporations.

We recommend checking out the Maryland General Assembly’s guidelines for a complete list of naming rules in this state.

2. Conduct a Business Name Search in Maryland

To check whether your desired name has already been taken by another business entity in Maryland, you can perform a Business Entity Search on the Maryland Business Express website.

If you’re not going to start your LLC right away, it might be a good idea to consider reserving your name for up to 30 days ($25 processing fee).

For more information, you can have a look at our Maryland LLC Name Search guide.

3. Conduct a Domain Name Search

It’s important to check that your business name is available as a web domain. Even if you don’t plan to make a business website right away, completing this step will prevent others from acquiring it.

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.

FAQ: Naming a Maryland LLC

Step 2: Choose a Registered Agent in Maryland

After you find the right name for your LLC, you will need to nominate a Maryland registered agent, known more commonly as a resident agent. This is a requirement for all LLCs in Maryland.

What is a resident agent? A resident agent is an individual or business entity responsible for receiving important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your business. Think of your registered agent as your business’s primary point of contact with the state.

Who can be a resident agent? Per Maryland law, a resident agent must be a resident of Maryland or a corporation, such as a registered agent service, authorized to transact business in the state of Maryland. You can choose to elect an individual within the company (e.g., yourself, etc.) or use a business attorney.

FAQ: Nominating a Registered Agent

Step 3: File the Maryland LLC Articles of Organization

To register your Maryland LLC, you will need to file the Articles of Organization with the Department of Assessments and Taxation. You can do this online, by mail, or in person.

Before filing, make sure you have completed your Articles of Organization correctly. You will need to have filled in the following sections:

• The name of your LLC
• The purpose for which your LLC is being filed
• Your LLC’s Maryland address
• The name and address of your LLC’s Maryland resident agent
• The signature of your resident agent
• The signature of an authorized individual

File the Articles of Organization

OPTION 1: File Online With Maryland Business Express

File Online

– OR –

OPTION 2: File by Mail or In Person

Download Form

State Filing Cost: $100, payable to the Secretary of State (Nonrefundable)

Address for Mail and In-Person Filings:
State Department of Assessments and Taxation
700 East Pratt Street, Suite 2700
Baltimore, MD 21202

For help with completing the form, visit our Maryland Articles of Organization guide.

If you’re expanding your existing business to the state of Maryland, you’ll need to register as a foreign limited liability company (LLC).

FAQ: Filing Maryland LLC Documents

Step 4: Create a Maryland LLC Operating Agreement

In Maryland, LLCs are not required to have an operating agreement, but it’s a good practice to have one.

An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

You can use the free tool in our Business Center to create a custom operating agreement in minutes — or download our free templates:

• Maryland Single-Member LLC Operating Agreement
• Maryland Multi-Member LLC Operating Agreement

FAQ: Creating a Maryland LLC Operating Agreement

Step 5: Get an EIN for Your Maryland LLC

You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.

Why do I need an EIN? An EIN is required for the following:

• To open a business bank account for the company
• For federal and state tax purposes
• To hire employees for the company

Where do I get an EIN? An EIN, which is also known as a Federal Tax Identification Number, is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

FOR INTERNATIONAL APPLICANTS: You do not need an SSN to get an EIN. Learn more here.

Get an EIN

Option 1: Request an EIN from the IRS

Apply Online

– OR –

Option 2: Apply for an EIN by Mail or Fax

Download Form

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

FAQ: Getting an EIN

Best LLC Services in Maryland Compared

For a comprehensive comparison, read our Best LLC Services review. We reviewed and ranked the top LLC formation services to help you determine the best fit for your new business.

Important Next Steps to Protect Your Maryland LLC

After you’ve formed your LLC, you’ll need to complete key steps in order to:

• Separate your personal and business assets
• Stay compliant with state and federal laws

Get a Business Bank Account & Credit Card

Using a dedicated business banking account and business credit card is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your LLC is sued. In business law, this is referred to as piercing your corporate veil.

You can protect your business with these two steps:

1. Opening a business bank account:

• Separates your personal assets from your company’s assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

2. Getting a business credit card:

• Helps you separate personal and business expenses.
• Builds your company’s credit history, which can be useful to raise capital later on.

Get Insurance

Even though an LLC offers limited liability, you’ll still likely need to purchase some form of business insurance to protect your LLC’s assets. The most common types are:

• General Liability Insurance: A broad insurance policy that protects your business from lawsuits. Most small businesses get general liability insurance.
• Professional Liability Insurance: A business insurance for professional service providers (consultants, accountants, etc.) that covers against claims of malpractice and other business errors.
• Workers’ Compensation Insurance: A type of insurance that provides coverage for employees’ job-related illnesses, injuries, or deaths. In Maryland, businesses with one or more employees, including LLC members and corporate officers, are required by law to have workers’ compensation insurance.

Want to learn exactly what coverage your Maryland business may need? Read our full Maryland Business Insurance Guide.

Obtain Business Licenses If Needed

While Maryland doesn’t require a general state business license, your LLC may need specific licenses or permits based on its industry, location, and activities.

• State-Level Licenses: Use the Maryland OneStop Portal to determine if your business requires any state-issued licenses or permits.
• Local Licenses: Check with your city or county clerk’s office to identify any local licensing requirements, such as zoning permits or health department approvals.
• Federal Licenses: If your business activities are regulated by a federal agency (e.g., selling alcohol or firearms or operating in the transportation industry), consult the U.S. Small Business Administration’s website to determine necessary federal licenses or permits.

For a comprehensive overview and step-by-step instructions, refer to our Maryland Business License Guide.

Pay Maryland LLC Taxes

Your Maryland LLC will have several key tax obligations:

Federal LLC Tax Requirements

As a pass-through entity, profits typically flow to your personal tax return. LLC members pay self-employment tax (15.3%) on their earnings.

Income Taxes

Maryland imposes two income taxes that may impact your LLC: personal income tax and corporate income tax. You can complete the relevant income tax return using the iFile Maryland portal or by mailing the forms listed below:

• Personal Income Tax: The members of LLCs with a default tax structure are required to pay Maryland’s personal income tax (2% to 5.75%, depending on distributions). Members can use Form 510 to submit this return.
• Corporate Income Tax: LLCs that have elected to be taxed as C corporations are required to pay corporate income tax (8.25% of net income). You can use Form 500 to submit this return.

Sales and Use Taxes

If you’re selling a physical product, you’ll need to obtain a seller’s permit through the Comptroller of Maryland website. 

This certificate allows a business to collect sales tax on taxable sales.

Sales tax, also called “Sales and Use Tax,” is a tax levied by states, counties, and municipalities on business transactions involving the exchange of certain taxable goods or services.

Read our sales tax guide to find out more.

Employer Taxes

If you have employees in Maryland, you’ll need to register for Unemployment Insurance Tax through the Maryland Department of Labor. You’ll also need to sign up for Employer Withholding Tax through the Comptroller of Maryland.

Local Taxes 

In addition to statewide income tax, many of Maryland’s counties also impose their own additional local income taxes that typically range between 2.25% and 3.20%. 

You can discover the income tax rate in effect in your local area on the Comptroller of Maryland website.

Most Maryland LLCs must file their state tax returns by April 15. For help understanding your full tax obligations — and making sure nothing gets missed — check out our full Maryland LLC Tax Guide.

File Your LLC Annual Report

Maryland requires all LLCs to file an annual report with the Maryland State Department of Assessments and Taxation (SDAT).

You’ll need to file this annual report, either online or by mail along with the $300 filing fee by April 15. While extensions are available, failing to file can have serious consequences, such as a $100 late fee that increases by $25 for each month you’re late.

Note: After two years of failing to file, your business license could be forfeited, requiring reinstatement proceedings and additional fees.

To stay on top of this deadline and other important compliance tasks, we recommend hiring a professional registered agent service — they can help ensure you never miss a filing.

Maryland Business Resources