Forming an LLC (Limited Liability Company) in Maryland is a sound operational decision.
The benefits of incorporating a business as an LLC include liability protection for the members and favorable taxation of personal income. In the event your business is sued, your personal assets will stay off-limits to the litigators.
The Free State has a straightforward, primarily digital company formation process, affordable state fees, and favorable business climate, in terms of taxes.
Here’s a detailed view of how to form your LLC in Maryland, including forms, timelines, and costs:
6 Steps to Start an LLC in Maryland
- Step 1: Choose a name for your LLC
- Step 2: Designate a registered agent
- Step 3: Obtain Maryland articles of organization
- Step 4: Create an LLC operating agreement
- Step 5: Obtain an EIN (Employer Identification Number) from the IRS
- Step 6: Open a business bank for your LLC
1. Choose a name for your LLC (must be unique)
Every new business entity needs to have a legal business name. Under Maryland laws, you must select a name that is:
- Distinguishable from another business
- Allowed to be used in the state
For example, your business name must include “LLC” or some abbreviation of the term. You may also be barred from using words such as “bank” or “trust” in your LLC name unless you operate in this industry.
Use the business name search tool to make sure the business name you want to register meets the state requirements.
If your intended LLC name is available, but you need more time to register it, you can reserve that name for 30 days. The name reservation fee is $25, and the application must be filed with the State Department of Assessments and Taxation (DAT).
You can expedite this request for an additional $20.
2. Designate a registered agent
A registered agent (called the resident agent in Maryland) is a person or professional service provider that receives hand-in service of process documents on behalf of your business.
Essentially, their job is to accept and forward important business documents to you.
Registered agents must be available during business hours every day. The registered agent must also have a valid street address (not a P.O. box) in the state where the LLC is registered. This address will be listed with the Secretary of State. In case of a move, you’ll need to file a form for changing it.
Small business owners can hire a resident agent professional service or appoint friends, family members, or themselves to be the LLC's registered agent.
Using a registered agent service in Maryland involves extra costs. However, many prefer to pay those to ensure privacy and timely handling of important correspondence.
3. Obtain Maryland articles of organization
The articles of organization is a baseline legal document, signaling the formation of your LLC. Effectively, it registers the company’s legal name, owners, management structure, and other essential tidbits with the state.
You can file your articles online via Business Express Portal. Or in person with the Maryland Department of Assessments and Taxation in Baltimore.
In both cases, the cost of registering an LLC in Maryland is $100.
The good news is that you can pay an extra $50 for expedited service to receive hardcopy filings in 7-10 business days.
You may also need copies of your business documents like a Certificate of Status to obtain a loan or business license. Unofficial business documents are available online through Maryland Business Express, but you must pay a fee for certified copies.
4. Create an LLC operating agreement
An LLC operating agreement is an optional but highly recommended document for LLC members.
The operating agreement specifies key business information like ownership structure, voting rights, change management, and how the business will be run.
Having a proper operational agreement in place is especially important for multi-member LLCs to avoid conflicts and misunderstandings.
You can skip this step if you’re single-member LLC. You can find lawyer-written operating agreement templates online for a modest fee. Or you can have one drafted specifically for you by a corporate attorney. It’s more expensive but will leave you fully covered.
Last updated: May 2023Start your LLC the easy way
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Best LLC Service 2022 
- Formed 1,000,000+ LLCs
- $39 formation includes registered agent service
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Last updated: May 20235. Obtain an EIN (Employer Identification Number) from the IRS
Employer Identification Number (EIN) is a 9-digit number issued by the Internal Revenue Service (IRS) to identify businesses for federal tax purposes.
You’ll need an EIN to file federal and state tax returns, hire employees, or open a business bank account. Getting an EIN for your new LLC is free.
Just fill in a form on the IRS website and get one issued for you instantly.
As a single-member LLC who plans to stay with the default tax classification of a sole proprietorship, you can postpone this step for later.
6. Open a business bank account for your LLC
As a new legal entity, your LLC needs a dedicated business bank account. Tracking your business income and performance is easier with a separate business bank account and helps you avoid violating LLC formation rules.
The mixing implies that your business isn't truly a separate business structure, therefore if your business gets sued and you're co-mingling funds, you lose the personal liability protection an LLC extends over you.
Most Maryland banks require your articles of organization, EIN, and business owner personal information to open a bank account.
Recently Asked Questions:
Below are the most frequently asked questions about forming an LLC in Maryland.
Last updated: May 2023Start your LLC the easy way
Forming your LLC is a checkbox that needs to be ticked. Easy, fast and worry-free. We reviewed the 13 most popular LLC formation services to figure out who truly understands what new founders need. Our recommendation:
We don’t make up scores.
Best LLC Service 2022
- Formed 1,000,000+ LLCs
- $39 formation includes registered agent service
- Fast formation & same day filing
- Exceptional customer reviews
Last updated: May 2023