Maryland's LLC filing structure starts at $100 for online submissions through the state's Business Express portal, with additional expedited options available for businesses needing faster processing. The state charges a $300 annual report fee—among the highest in the nation—but keeps initial formation costs competitive with neighboring jurisdictions.
Processing times vary significantly by method: online filings typically complete within 7-10 business days for standard service, while expedited online processing costs approximately $325 total. Paper filings take 4-6 weeks, with higher rush fees available. All electronic payments incur a 3% surcharge or $3 eCheck fee, which should be factored into your total formation budget.
Maryland's Department of Assessments and Taxation (SDAT) maintains a tiered fee structure based on filing speed and method. The base $150 filing fee represents the most cost-effective option, while expedited services provide same-day processing for urgent business needs.
Payment processing adds a 3% fee for credit card transactions, or $3 for eCheck payments. The annual report requirement of $300 applies to all Maryland LLCs regardless of formation method, due every April 15 to maintain good standing.
Maryland's fee structure places it slightly above the national average of $132 for initial LLC formation, but the annual maintenance costs create a different competitive picture. Among neighboring states, Maryland's ongoing compliance burden stands out significantly.
Delaware matches Maryland's $300 annual fee but charges a $110 formation cost. Virginia provides substantial savings with $100 to form and only $50 annually. Pennsylvania now requires a $7 annual report after a $125 formation fee, while West Virginia keeps costs minimal at $100 to form, with just $25 yearly maintenance.
Maryland's total first-year cost of approximately $403 (including payment processing fees) exceeds most regional competitors, but businesses operating physically in Maryland often find that registering elsewhere creates additional complexity. Foreign LLC registration requirements, dual compliance obligations, and coordination challenges frequently offset the initial savings from choosing lower-cost states.
The value proposition centers on proximity to federal markets, access to skilled talent pools, and simplified compliance for businesses with Maryland operations. However, for virtual businesses or those with minimal state ties, neighboring states offer compelling cost advantages, particularly for ongoing maintenance.
Beyond base formation and annual report fees, several optional and situational costs may arise during your Maryland LLC's lifespan. This includes:
Local business licenses add another layer of costs that vary significantly by jurisdiction and industry type. Most Maryland municipalities require licenses ranging from $30-$200 annually, with certain professions or activities carrying higher fees.
Discern your Maryland annual report filing, tracks deadlines across all jurisdictions where you operate, and provides real-time visibility into compliance status. Most filings are complete in minutes, while our registered agent services ensure reliable document handling across all US jurisdictions.
Ready to take the stress out of LLC compliance? Book a demo with Discern today.
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