How to Start an LLC in Maryland

The first step is choosing a unique name for your LLC that meets the Maryland SDAT requirements. Your LLC name must be distinguishable from all other registered businesses in Maryland.

Maryland LLC Naming Requirements:

• Must include Limited Liability Company, Limited Company, or abbreviations: LLC, L.L.C., LC, or L.C.
• Cannot include words like "corporation," "incorporated," "association," or their abbreviations
• Words like "bank," "credit union," or "trust" require prior state approval
• Must be unique — check availability at Maryland SDAT's Maryland Business Express portal.

Reserve Your Name (Optional):

You can reserve your chosen name for 30 days by submitting a name reservation to SDAT for a $25 fee. This ensures no one else can register the same name while you prepare your documents.

DBA / Trade Name in Maryland:

If you want to operate under a different name than your legal LLC name, you can register a trade name (DBA) in Maryland through the SDAT Maryland Business Express portal.

Maryland uses the term Resident Agent — not "registered agent." The role is the same: a person or company with a physical Maryland address who receives legal documents and official notices on behalf of your LLC.

Maryland Resident Agent Requirements:

• Must have a physical street address in Maryland (P.O. boxes not accepted)
• Must be available during normal business hours
• Can be an individual Maryland resident or a business entity authorized in Maryland
• Must be available during regular business hours at a Maryland physical address

Filing the Articles of Organization with Maryland SDAT (State Department of Assessments and Taxation) is the step that officially creates your LLC. This document tells the state your LLC's name, address, management structure, and resident agent details.

Filing Options & Fees:

What to Include in Your Articles:

• Your LLC's name
• Resident Agent name and address (+ signed Acceptance Form)
• Business mailing address
• Management structure: member-managed (owners run it) or manager-managed (designated managers)

Maryland does not legally require an operating agreement — but every LLC should have one. It outlines how your LLC is owned, managed, and operated. Without it, disputes between members have no written rules to fall back on, and courts apply Maryland's default LLC rules instead — which may not match what you intended.

What to Include:

• Ownership percentages and each member's share of profits/losses
• Management structure — member-managed or manager-managed
• Decision-making authority — who can sign contracts, manage finances
• Procedures for adding or removing members
• Dissolution process — how assets are distributed if the LLC closes

An EIN is your LLC's federal tax ID — like a Social Security Number for your business. You need it to open a business bank account, hire employees, file taxes, and apply for business licenses.

• Most LLCs — especially multi-member ones — are required to have an EIN
• Single-member LLCs without employees can technically use the owner's SSN, but an EIN is strongly recommended for banking and privacy
• Getting an EIN from the IRS is free — apply online at IRS.gov or by fax/mail
• Non-US residents cannot apply online — must use IRS Form SS-4 by fax or mail

Maryland requires all LLCs to file an Annual Report (Form 1) with SDAT every year by April 15. The fee is $300 if filed by mail. Online filing through Maryland Business Express may reduce or eliminate this fee. Missing the deadline results in a $100 penalty and potential forfeiture of your LLC.

Forming an LLC is separate from getting the business licenses and permits your specific business needs to operate legally in Maryland. Requirements vary by industry, city, and county. Requirements vary by industry, city, and county.

Common Maryland Business Licenses:

• Maryland Sales and Use Tax License — required if you sell taxable goods or services in Maryland. Apply through the Comptroller of Maryland.
• County/local business license — Baltimore City, Montgomery County, Prince George's County and others may require local licenses in addition to state requirements
• Professional licenses — required for contractors, healthcare providers, real estate agents, and other regulated professions
• Federal licenses — required for businesses in agriculture, firearms, aviation, or other federally regulated industries