How to Form an LLC in Maryland

Co-authored by Srabone Monir, JD

Last Updated: May 14, 2023

It can be useful to know how to form an LLC in the State of Maryland under the Statute 4A-202 & 4A-204. This statute provides that a resident may apply for a domestic LLC licensed to operate a business in the State of Maryland. It is important to have the proper documentation and follow the correct processes for establishing your business.

Part 1

Part 1 of 2:

Filing the Right Paperwork

1
Choose your business name. This is the most important part of the process. Once you have decided the name that you want, check to see if it is available with the Maryland LLC Search Tool. Each LLC business name must be unique and include one of the following at the end of the name:^{[1]
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- L.L.C.
- LLC
- L.C.
- L C
2
Fill out Articles of Organization. - You will need to fill out the application to form an LLC which is called the Articles of Organization. Make sure to fill in every question required. You will need to include the following information:^{[2]
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- Purpose
- Address of the LLC (must be in MD and not a PO Box)
- Name and address of the registered agent
- Signature of one of the LLC founders
- Signature of the registered agent
- Return address for further correspondence
3
Submit your Articles of Organization. The articles should be submitted by mail. Regular processing requires 8 weeks or more. You can also fax completed forms with credit card payment information to 410-333-7097, but be aware that any faxed requests will be charged an expedited service fee.
- Add the filing fee of $100, made payable to the State Department of Assessments and Taxation. You will also need to pay $20+ $1 per page of your documents and $20 for a Certificate of Status at the time of filing.^{[3]
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- Send the Articles of Organization and filing fee to the following address: State Department of Assessments and Taxation, Charter Division, 301 W. Preston Street, 8th Floor, Baltimore, MD 21201-2395
4
Pay extra for expedited service. If you do not wish to wait 8 days for the standard processing time, you can opt for expedited service, which should be completed within 7 business days.
- Add $50 for each document if you would like your forms expedited.
- You can hand-deliver documents for same-day service, provided that you are in line before 4:15PM.
5
Appoint a registered agent. LLCs are required to appoint a registered agent at the time of filing for Articles of Organization. This is a person designated by the LLC to accept legal process (any notice or demand that is served upon the company).
- The agent is responsible for sharing information about any legal process with the company.
- The agent may be any Maryland citizen who is over eighteen, a Maryland corporation, or a Maryland LLC.
- The agent must have a physical street address in Maryland.
6
Create an operating agreement. This step is technically optional, but it is highly recommended that you establish an operating agreement at the time of filing your articles. A sample operating agreement can be seen here. At a minimum, an operating agreement should include:^{[4]
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- Company name
- Registered agent
- Date the company was formed
- The terms under which the company will continue
- Purpose of business
- Details about company management and members
You will receive a response about your filing in the mail. The filings usually take about 8 weeks without expedited service.

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Part 2

Part 2 of 2:

Taking Additional Action

Apply for an EIN Tax ID Number. If you think that you will be opening a bank account under the name of your company, then you will need to apply to the IRS (Internal Revenue Service) for a tax id number.
2
Apply for business licenses. In addition to incorporating your business, you need to obtain any local or state licenses required for doing business in the state of Maryland.
- The nature of your company and your location will influence the types of licensing you will be required to maintain.
3
File a Personal Property Return (PPR). All LLCs doing business in Maryland must file a PPR with the Department of Assessments and Taxation's Personal Property Division. This PPR serves as an annual report on your business. The PPR form can be found here. Instructions for filling out the form can be found here.
- The PPR is due by April 15 every year and must be filed by mail. There is an annual $300 filing fee, which is separate from any tax liability.
- Forms should be mailed to: State of Maryland, Department of Assessments and Taxation, Personal Property Division. PO Box 17052, Baltimore, MD, 21297-1052.
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