How to Start a Business in Maryland (2026): SDAT Filings, Fees and Taxes

In Maryland, business formation runs through the State Department of Assessments and Taxation (SDAT), not a Secretary of State. To start a business in Maryland, file Articles of Organization ($100) or Articles of Incorporation ($120) with SDAT, usually through Maryland Business Express, get an EIN, register with the Comptroller of Maryland for sales and withholding taxes, and get any local licenses. The big recurring cost is the $300 annual report every LLC and corporation files by April 15.

Maryland also expanded its sales tax in 2025: since July 1, 2025, many data, IT and software publishing services are taxed at 3%. Facts below are current as of October 2026.

Updated October 2026.

Best Business Formation Services in Maryland (2026)

Here are our top picks for forming a business in Maryland, ranked. Mainstay Filing comes first for its flat yearly price; the two Maryland registered agent services below it are options if you only need an agent.

1. Mainstay Filing

Mainstay Filing is our top pick in Maryland. It costs $199/year + state fee at cost and covers lLC formation filing, registered agent for the year, EIN application, annual report preparation and filing. The price stays the same every year, with no add-on menu.

2. MD Registered Agent.org

MD Registered Agent.org is a Maryland registered agent service at $99/year. It provides $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.

3. Maryland Registered Agent.co

Maryland Registered Agent.co is a Maryland registered agent service at $99/year. It provides in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.

What you’ll pay to start a business in Maryland

Choosing a Maryland business structure

• Sole proprietorship: no SDAT formation filing; you’re personally liable. Register a trade name if you use one.
• General partnership: no formation filing required; partners share personal liability.
• LLC: $100 to form plus the $300 annual report, with liability protection. LLCs skip the officers-and-directors section of the annual report.
• Corporation: $120 to form for a basic stock corporation, rising with larger authorized capital, and the same $300 annual report.

Because the $300 annual report applies to every LLC and corporation, factor it into your budget from the start. Our Maryland LLC guide walks through the Articles of Organization in more detail.

Year-one cost for a Maryland LLC

An LLC filed on paper pays $100 to form; one filed through Business Express pays $150 plus a 3% payment fee because online filings are expedited. The first $300 annual report is due April 15 of the year after formation. Budget roughly $400 to $460 in state charges across the first two calendar years, before local licenses or any personal property tax your county bills.

Forming a Maryland company from out of state

Maryland doesn’t require LLC members to live in the state, but every Maryland LLC must keep a principal office in Maryland and a resident agent, under Article 4A-210. Out-of-state owners usually rely on a commercial agent for both the agent role and the in-state address. If you run the business from another state, check whether that state also requires you to register the company there.

How do you name a Maryland business?

Search SDAT’s business entity records on Maryland Business Express before filing. An LLC name must include “Limited Liability Company,” “L.L.C.,” “LLC,” “L.C.” or “LC,” and corporations need “Corporation,” “Incorporated,” “Limited” or an abbreviation. Our Maryland business name search guide explains the search.

Generate ideas with the Namechk business name generator, and check the matching domain and social handles on Namechk.

Trade names in Maryland

Businesses that operate under a name other than their legal name register a trade name. Check SDAT and your county’s requirements before you start using a brand, since a trade name doesn’t create a legal entity or give liability protection.

Who can be your Maryland resident agent?

Maryland uses the term resident agent. Every LLC must have a principal office in Maryland and a resident agent, under Corporations and Associations Article 4A-210. The statute defines a resident agent as an individual residing in Maryland or a Maryland corporation, LLC or limited partnership; SDAT’s own instructions describe a Maryland resident or an active Maryland corporation, and the agent needs a Maryland address.

An owner who lives in Maryland can serve personally. Others typically hire a commercial agent; Mainstay Filing includes one for the first year with its formation package. Changing the principal office or resident agent costs $25 with SDAT’s resolution form, and agents can resign at no charge. Our Maryland resident agent guide covers the details.

Filing your Articles with SDAT

1. Open Maryland Business Express and choose to start a new business, or download SDAT’s paper form.
2. Select Articles of Organization (LLC) or Articles of Incorporation (corporation).
3. Enter the name, principal office address, resident agent and the person forming the entity; corporations also state their authorized stock.
4. Pay the fee. Online filings are expedited and include the $50 expedite fee plus a 3% payment fee; paper filings cost the base fee, with an optional $50 expedite.

Then adopt an operating agreement or bylaws. Maryland doesn’t file them, but they settle ownership and decision rules, including how profits are split, who can sign contracts and what happens when an owner leaves. For a fuller cost breakdown, see Mainstay’s Maryland LLC cost guide.

Getting an EIN

Apply free on the IRS website. The Comptroller’s registration and most banks require it.

U.S. companies no longer file federal BOI reports; FinCEN’s final rule took effect August 14, 2026.

Registering for Maryland taxes

The Comptroller of Maryland handles sales and use tax and withholding registration, and the Maryland Department of Labor handles unemployment insurance.

• Sales and use tax: businesses selling taxable goods or services register with the Comptroller for a sales and use tax license.
• New 3% tax on technology services: according to the Comptroller, since July 1, 2025, sales of data or information technology services (NAICS sectors 518 or 519, or subsector 5415) and system or application software publishing services (subsector 5132) are taxed at 3%. IT consultants, web developers and SaaS businesses should check whether they’re covered.
• Withholding: register before your first Maryland payroll.
• Unemployment insurance: employers register with the Maryland Department of Labor.

Business personal property tax

Maryland’s annual report doubles as a business personal property return. If your business owns, leases or uses personal property in Maryland (such as equipment or furniture) or holds a trader’s license, you complete the property return sections of Form 1. SDAT assesses the value, and your county or city bills the tax.

Licenses and permits in Maryland

Maryland has no single general state business license, but many retail and wholesale businesses need a trader’s license, which is issued through the clerk of the circuit court in the county where they operate. Other requirements include:

• Local zoning, building and health permits from your county or city.
• Professional and occupational licenses from the Maryland Department of Labor’s licensing boards, for trades from home improvement contractors to cosmetologists.
• Alcohol licenses from local liquor boards.

Banking, insurance and a website

Open a business bank account with your SDAT-approved Articles and EIN, and keep business finances separate.

Buy general liability insurance, add professional liability if you provide services, and arrange workers’ compensation before you hire. Then secure a matching domain and launch a website.

If you’re registering for the new 3% tech-services tax, note your service categories in your own records too; it makes later questions from the Comptroller easier to answer.

Annual requirements in Maryland

• File Form 1, the annual report, by April 15 every year, starting the year after formation. The fee is $300 for LLCs and corporations; online payment adds a 3% technology fee. A free 60-day extension to June 15 is available when requested online.
• Complete the personal property return sections only if your business owns, leases or uses property in Maryland or holds a trader’s license.
• Late filers face penalties based on their county assessment, and entities that don’t file can have their charter forfeited.
• Businesses that meet MarylandSaves retirement-program criteria may qualify to have the $300 fee waived.

FAQs

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