Similar to how each state differs in registration procedures, the expenses incurred during business formation widely vary. From filing costs up to yearly requirements, losing track of financial obligations is very likely and could damage your good standing. In this post, let our trade experts discuss all about Maryland LLC annual fees to ease your worries.
Formation Costs for a Maryland LLC
Business Name Reservation
Like most states, business name reservation isn’t a requirement when forming an LLC in Maryland. Typically, business owners could register their chosen LLC name upon filing their articles of organization.
However, if you’re still in the process of planning, you can hold onto your desired trade name and reserve it for a minimum of 30 days, along with a $25 filing fee. We recommend searching through the state’s public records before submitting formation documents to avoid delays and trademark conflict.
Articles of Organization
This filing can be accomplished online or via mail. Nevertheless, it’ll cost you $100 for the processing. If you want expedited services, you can add another $50 on top of the actual filing fee.
Resident Agent
Any LLC operating in Maryland must select an outstanding resident agent who’s 18 years of age, available during business hours, and has a physical address where all notices and demands from the government may be served.
While you’re legally allowed to act as your own LLC’s resident agent, this critical role could incur penalties once you miss time-sensitive documents. Our business enthusiasts highly recommend seeking professional registered agent service to ensure compliance.
EIN Registration
To be recognized by the state as a tax-paying business entity, you should apply for an Employer Identification Number (EIN) or Federal Tax ID number [1]. Some transactions like opening a company bank account and hiring human resources require obtaining this nine-digit ID from the IRS.
Typically, you can request it for free and even file for it online. However, if you assign a formation company to do it for you, you may expect handling or processing fees.
Business License
While not all business types are obliged to obtain licenses and permits, certain activities and transactions require this procedure. To know the specific applications you should file, you should check out the Department of Labor, Licensing, and Regulation website and local government office.
Companies that offer professional services like real estate may need specialized licenses before commencing. On the other hand, some municipalities also implement building and zoning permits, which could apply to certain kinds of business.
Certificate of Good Standing
As a running business, you’ll bump into transactions with banks and lending companies. Most of these institutions will oblige you to submit a certificate of good standing as proof that your company is compliant with state law. You can request one from the Department of Assessments and Taxation for a $20 online filing fee or $40 for personal submission.
Foreign LLC Registration
Instead of filing articles of organization for your LLC, a foreign entity should submit an LLC Registration form to the state along with a $100 one-time processing fee. This submission could be made through the mail or online.
(To help you get through this complicated process, we reviewed the top online incorporation services you can hire)
Other Taxes
Taxes imposed on Maryland LLCs are not directly paid to the Federal Government, but all profits and losses incurred by the business should be reported on their corporate tax returns. Besides that, there are specific business-related taxes you have to pay, like sales and use tax.
(For related topic, you can also check the LLC formation cost and annual fees per state here)
Maryland LLC Annual Fees
Annual Report
Every April 15, after the year your LLC is formed, the state of Maryland requires all business entities under its jurisdiction to submit annual reports with updated information about the company. This yearly submission costs $300 that could be accomplished electronically or by mail.
Importance of Paying LLC State Fees
Besides maintaining your good standing within the state, consistent payment of all Maryland LLC annual fees allows you to keep your operating rights and limited liability protection. Failure to accomplish these requirements will lead to administrative dissolution and penalties.
(For fast and efficient formation procedures, you can also hire the most reliable LLC formation providers listed here)
FAQ
How much does an LLC cost in Maryland?
An LLC in Maryland costs $100 for the filing and processing of Articles of Organization. However, if you want to expedite the procedure, you can apply for their expedited services for another $50. A limited liability company in Maryland is also obliged to file an annual report and pay $300 for each filing.
Conclusion
Keeping track of all Maryland LLC annual fees may seem like a tedious process, but being consistent with your state obligations could affect your company positively in the long run. However, if you find yourself panicking over the process, our team strongly suggests seeking professional services to aid and keep your business compliant with the law.
For related LLC formation costs and regular yearly fees, you can visit the following states, as well:
