Start Your LLC in Maryland for Free, Without Hassle
We’ve reviewed dozens of service providers to find one that offers free, yet reliable LLC formation services—Tailor Brands. It has 10+ years of industry experience. Leverage its services to form an LLC in Maryland in no time and absolutely free.
Free Formation. No Hidden Cost
Free formation packages for an LLC in Maryland, including documentation, review, and application filing.
Access 20+ business tools for branding, logo creation, social media, and more, along with LLC formation.
Fast application processing in just two days to save time and kickstart your LLC in Maryland without delay.
Costs to Consider Before Forming an LLC in Maryland
Starting an LLC in Maryland involves various costs. There are many government filings that need to be done and each requires a filing fee.
Here, we’ll list some of the common costs involved in forming an LLC in Maryland.
- The state of Maryland charges a $100 filing fee for processing the Articles of Organization for an LLC.
- The rush filing option (3-hour processing) costs $325 for online filing and $425 if documents are submitted in person.
- The expedited processing costs an extra $50, which will get your application reviewed within 7-10 business days.
- Filing an annual report costs $300 for both domestic and foreign LLCs in the state of Maryland.
The costs of running an LLC in Maryland are higher than those in most states, primarily due to the high cost of filing annual reports. However, you can save time and money during registration by hiring Tailor Brands to take care of the process.
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A Step-by-Step Guide to Forming an LLC in Maryland
To form an LLC in Maryland, you need to register your Articles of Organization with the Secretary of State. However, there are many steps involved before and after that to ensure you hit the ground running and start an LLC in Maryland successfully.
Let’s discuss the step-by-step process of launching an LLC in Maryland.
Create a Solid Business Plan
Come up with a business idea and conduct sufficient market research to ensure that it’s a feasible and profitable idea. Use that research to create a solid business plan for how you will launch your business and win your first few clients.
If you’re starting an LLC in Maryland, your business plan should have all the essential information about your business, such as its purpose, goal, target customers, and value proposition. You should also include the financial projections and marketing strategy for your LLC in Maryland in your plan.
Pick a Unique Name for Your LLC in Maryland
To register your LLC in Maryland, you’ll need an official business name. This name should adequately represent your business and must be unique. This means that no existing business should be using your chosen business name.
You must also follow Maryland’s LLC naming requirements, which require you to add “limited liability company” to your business name. Alternatively, you may also use one of its abbreviations, such as LLC or L.L.C.
Reserve Your LLC Name and Buy a Domain
If there’s a delay in registering your new LLC in Maryland, you should consider reserving your business name, so that no other business may use it. This requires filing an application to reserve it for 30 days for $25.
It’s important to have a website domain name that matches your LLC name or assumed business name. That’s why, you should not wait till LLC registration to get one, but should buy a matching domain name as early as possible.
Hire a Maryland Registered Agent
A resident agent or registered agent is an individual or organization responsible for receiving legal correspondence on behalf of a business. They receive legal documents and notify the business of any requirements or deadlines.
If you’re thinking of being the registered agent for your LLC in Maryland, then you’ll need to be present at the registered address on all business days, during business hours. If you’re not up for it, you can hire a professional to do it for you.
Choose the Type of LLC You Want to Start
There are two common types of LLCs you can register—a foreign LLC and a domestic LLC. The former is applicable if you’re expanding an existing business to Maryland, while the latter is applicable if you’re starting a new LLC in Maryland.
Another choice you need to make is to decide if you want a single-member LLC or a multi-member LLC. This will be determined by the number of owners for your LLC in Maryland. If you share the ownership with others, you’ll need a multi-member LLC.
Create an LLC Operating Agreement
Unlike corporations, which have strict rules they must follow, an LLC in Maryland follows its guidelines. LLC members brainstorm and create an LLC operating agreement that contains all information on how the LLC will be managed.
Though it’s not state-mandated, it’s a great idea to have a well-defined operating agreement. This will streamline the company’s operations and decision-making process and help you resolve conflicts among members in an LLC in Maryland.
File Your Articles of Organization
The most important step in the process is to register your LLC in Maryland officially by filing an application and submitting your Articles of Organization to the Maryland Secretary of State. You may do so online, via mail, or in person.
To form an LLC in Maryland, you will need to provide essential information about your company, as required by the state, including registered agent information. You may opt for expedited review (7-8 business days) or rush filing (3-4 hours) by paying extra. This is a critical step in establishing your LLC in Maryland.
Obtain a Certificate of Organization
After you’ve filed your Articles of Organization, you need to wait. It takes 6-8 weeks for an application to get reviewed and processed. Expedited filing will reduce the time to 7-8 business days while rush filing will get it done in 3-4 hours.
Once your LLC in Maryland application is approved by the state, you may request a Certificate of Organization. This will cost you $100 and if you want a certified copy of the document, you will need to pay an additional fee of $20 for the same.
Acquire an Employer Identification Number
An EIN, also known as a Tax ID, is like a social security number for your LLC in Maryland. It helps the Internal Revenue Service identify your company and track its tax filings from year to year. This is a necessary ID that you must acquire.
Though it’s mainly required for tax reasons, an EIN has other benefits as well. When you go to open a bank account for your business, the bank may ask for an EIN. Having an EIN also makes it easier for you to secure loans and funding.
Open a Business Bank Account
Every business, including an LLC in Maryland, must have a bank account in its name, separate from the owners’ bank accounts. This helps keep a clear demarcation between the owner’s finances and business finances, thus reinforming the liability protection for LLC members.
You will find a plethora of options to choose from. We recommend going for a hybrid banking solution that allows you to conduct transactions on-the-go, without needing to visit the physical branch for every small banking need, making it convenient for your LLC in Maryland.
Get the Required Licenses and Permits
Your work is not done once you get a Certificate of Organization for your LLC in Maryland. You also need to check other startup requirements, such as the necessary general business licenses, occupational licenses, or permits to start operations.
The requirements differ from state to state and by the type of business you operate. As such, you should find out the specific requirements for your county, state, and business and then get all the permits you need to legally run your LLC in Maryland.
Get Insurance
When starting a new business, you must always plan for contingencies. Getting your business insured helps you with that. Get started with general liability insurance that protects your LLC in Maryland from various types of common liabilities.
You should also consider getting workers’ compensation insurance to pay employees if they incur any bodily harm while working for your company. Depending on the type of business, you may want to get a few other types of insurance as well.
Get a Website (Optional)
To stay relevant in today’s business world, you need an online presence for your business and a website is the first step toward that. Your website is the primary source of information for your business for prospective customers.
As such, you should invest in good website design and marketing services to create a site that organically drives traffic. It should also deliver a great user experience and keep prospects engaged enough to, eventually, drive conversions.
Stay Compliant
Running an LLC in Maryland is no easy task and requires you to continually stay in compliance with state and federal laws and regulations. This means being aware of all compliance requirements and ensuring you meet deadlines for your business.
The two most important requirements for your LLC in Maryland are paying taxes and filing annual reports on time. Find out about all other ongoing requirements and keep up with the deadlines or hire someone who can alert you of them ahead of time.
Why Should You Outsource LLC Formation Services?
LLC formation is a simple-enough process, but one that involves numerous forms and document filing requirements. If you’re doing it for the first time, seeking outside help is recommended. Here’s why.
It’s Convenient
Outsourcing the tedious process frees your time for more important work while experts take care of filing documents and getting your application approved. It makes things simple and convenient for you.
It’s Error-Free
Mistakes in your LLC filing can cost heavily as they may get your application rejected. That’s why it’s prudent to hire someone who knows what they’re doing and will ensure there are no mistakes.
It’s Quicker
If you do it yourself, as a first-time entrepreneur, you will need more time to prepare everything and file the documents for your LLC in Maryland confidently. Hiring experts to do this makes the process much quicker.
Benefits of Starting an LLC in Maryland
There’s a reason why LLCs are one of the most preferred business entities—they offer numerous benefits and few disadvantages. An LLC combines some of the best features of other entities like Sole Proprietorships and Corporations.
Let’s check out some of the main advantages of starting an LLC in Maryland.
Liability Protection
If you start a Sole Proprietorship or a Partnership, you and your company are inextricably related. As such, if the company is sued, you’re indirectly sued. If the company incurs debts, you’re personally liable to pay it off.
Limited liability companies overcome this challenge by protecting LLC members from being held liable for the company’s debts and lawsuits. The company needs to pay off its debts and its assets can be liquidated to achieve that.
Flexibility in Taxation
Limited liability companies follow pass-through taxation in general. A single-member LLC in Maryland is treated as a Sole Proprietorship for tax purposes. A multi-member LLC, on the other hand, is treated as a Partnership for tax purposes.
However, a Limited Liability Company (LLC) has the option to be taxed as a Corporation, if it so wishes. In fact, it can also file Form 2553 of the Internal Revenue Service to get the special tax status of an S-Corp and maximize its tax advantages.
Cheaper to Form and Run
A Limited Liability Company is typically cheaper to run than a Corporation because of fewer regulations and management guidelines. They don’t need to comply with strict guidelines or maintain detailed records of every meeting of members.
As mentioned earlier, LLCs have flexibility in tax treatment. This allows them to save money by paying less in taxes by choosing the best tax structure. Also, forming an LLC in Maryland costs $100 while forming a Maryland Corporation costs $120.
LLCs Require Minimal Paperwork
Corporations are required by law to maintain minutes of meetings for all board and shareholder meetings. Every decision is put to a vote and detailed records are kept of each round of voting and the decisions made during the meetings.
An LLC in Maryland has no such requirements and very few paperwork and record-keeping requirements. This saves considerable time and makes managing LLCs easier. The only legal requirement is to file an annual report, which is doable.
Ease of Management
Unlike a Corporation, LLCs don’t need to hold regular board meetings, conduct a formal voting process to make decisions, and maintain records. This makes managing limited liability companies a lot easier than managing a Corporation.
What’s more, the members of an LLC in Maryland can decide how it will be run. They typically hold an initial meeting where they discuss ideas and create standard operating procedures, which are documented in an LLC operating agreement.
Flexibility in Ownership
Many business entities, such as an S-Corporation, are subject to strict regulations on who can be an owner or shareholder in the company. S-corps, for example, can only have 100 shareholders and they must not be non-residents of the US.
As you probably know, LLCs don’t have such limitations. You can start an LLC in Maryland with one member or as many members as you need. There are very few limitations on who these LLC members can be and even non-residents can be one.
The Right to Hold Assets
An LLC is considered a pass-through entity for taxation. However, it still is an entity separate from its owners, unlike a Sole Proprietorship. This separate entity status gives an LLC in Maryland or any other state, certain rights and privileges.
This gives an LLC in Maryland the right to buy property, equipment, and other assets in its name, instead of having the owners buy these in their names. This has the added benefit of keeping your personal assets separate from business assets.
The Right to Enter into Contracts
Adding to the previous point, LLCs in Maryland also have the privilege of signing business contracts in the company’s name. As such, LLC members do not necessarily need to sign business contracts in their own names.
This allows LLCs to take business loans, enter into vendor contracts, and seek investments in their names. This, again, separates the members from the company and protects them in case the business fails to meet its obligations.
Tailor Brands LLC Formation Services in Maryland: Pricing
Whether you’re starting a new LLC in Maryland or looking to streamline the process of setting up and managing one, Tailor Brands provides free and paid services to get your LLC in Maryland — and other cities — running successfully.
Let’s check out the various plans you can choose from.
Lite
The Lite plan is a free option perfect for startups needing basic LLC formation services, including:
- Free LLC formation service: This plan allows you to form your LLC in Maryland without any upfront costs, aside from the necessary state fees. Tailor Brands handles filing paperwork required for the incorporation.
- Business coaching program: You can gain tailored insights and advice that can help your new business grow. Tailor Brands provides expert tips, resources, and tools through its business coaching program.
The Lite plan is ideal if you’re a new business owner on a budget and want to file your LLC in Maryland without worrying about time. It offers free LLC formation services, and you can upgrade later for more features if needed.
Price: $0 (plus state fees)
Essential
The Essential plan includes services for forming an LLC in Maryland, compliance tools, and other add-ons available, such as:
- Annual compliance support: The Essential plan helps your LLC in Maryland stay compliant with Maryland law. Tailor Brands notifies you of annual filings so you won’t have to worry about deadlines or missing required updates.
- Expedited processing: Get faster filing and processing for your Maryland business. With this, you can launch your business sooner. Tailor Brands prioritizes your paperwork, ensuring it’s sent to the state without delay.
- Operating agreement assistance: Tailor Brands provides tools and templates to help you create this document for your LLC in Maryland. It’s an important document necessary for formalizing your operations and structure.
- Amazon gift card: This plan comes with a $30 Amazon gift card as a welcome bonus. The card can be used for any startup needs. It’s a practical reward that saves you money on purchases for your LLC in Maryland.
Price: $199/year (plus state fees)
Elite
With the Elite plan, you’ll get complete business formation and branding tools for your LLC in Maryland with these extra features:
- 1-year free domain: Build your online presence with a free domain name for your business. Tailor Brands secures a professional domain that aligns with your brand to help you get your business website up and running.
- DIY website and online store: With easy-to-use tools, create a professional website or store for your LLC in Maryland. The Elite plan includes a platform where you can design and customize your site even without technical skills.
- 8 free logos: Establish a memorable brand with customizable logos. With this plan, you’re provided with eight logo designs, helping you create a unique visual identity for your business. This is key to building trust and recognition.
- Digital business card: A digital business card is a modern way to network and promote your LLC in Maryland. Tailor Brands provides tools to design and create a professional digital card to connect with clients and partners.
- Social media post maker: With the Elite plan, you can create stunning posts for social media platforms with ease. Tailor Brands’ tools include customizable post templates for promoting your business on social media platforms.
Price: $249/year (plus state fee)
Additional Services
Beyond its comprehensive pricing plans, Tailor Brands provides a range of additional services to support and grow your LLC in Maryland, including:
- EIN application: If you want to hire employees or open a business bank account for your LLC in Maryland, then getting an EIN is important. Tailor Brands can assist you in applying for and obtaining your EIN in no time.
- Business licenses and permits: Your LLC in Maryland needs the right licenses and permits to operate legally. Tailor Brands guides you through state and local requirements and helps you research and apply for necessary licenses.
- Business banking setup: Tailor Brands offers assistance in setting up a bank account for your LLC in Maryland. A separate account for business transactions will help manage finances and build credibility with clients.
- Trademark registration: It’s important to protect your brand identity from copycats. To achieve this, Tailor Brands assists with trademark applications to secure the brand name, logo, or slogan for your LLC in Maryland.
- Business insurance service: Tailor Brands’ team of experts can help you explore various insurance options, such as general liability, professional liability, and product liability insurance for your LLC in Maryland.
- Invoicing and bookkeeping tool: Managing finances for your LLC in Maryland can be simplified with Tailor Brands’ invoices and bookkeeping tool. The tool can streamline invoicing, expense tracking, and financial reporting.
Why Choose Tailor Brands to Form an LLC in Maryland
When forming an LLC in Maryland, choosing the right service provider can make all the difference. Tailor Brands stands out as a reliable and efficient choice. Here are three key reasons to trust them for your business formation needs:
No-Cost Formation
Tailor Brands provides free LLC formation in Maryland. Unlike many service providers that charge hefty fees, Tailor Brands simplifies the process without additional costs. You only pay the state filing fee of $100, which is also very affordable.
Comprehensive Tools
Tailor Brands does more than just form your LLC in Maryland. They provide valuable tools to help your business grow, such as logo design, website creation, and social media management. These resources give your brand a professional edge right from the start.
Simplified Process
With Tailor Brands, preparing and filing the required documents for your LLC in Maryland is easy. Simply complete an online form and provide the necessary information. The team handles the rest, ensuring a smooth and timely filing process.
FAQ
The cost of filling the Articles of Organization for forming an LLC in Maryland is merely $100. However, there are other costs associated with starting a new business, which you should account for when making an estimate.
If you hire a third-party business formation service provider, for instance, you may need to pay their service charges. However, if you opt for Tailor Brands, you can avoid this expense as it offers free formation services for an LLC in Maryland.
Follow these steps to form an LLC in Maryland the right way.
- Create a Solid Business Plan: Make a business plan that details exactly how you intend to launch and grow your new business.
- Pick a Unique Name for Your Maryland LLC: Do some brainstorming to come up with a relevant name for your business and check whether it’s available for use within the state.
- Reserve Your LLC Name and Buy a Domain: Reserve your LLC’s name if there are any delays in the business registration process. Also, secure a matching domain name that you can use for your business website.
- Hire a Maryland Registered Agent: Appoint a local resident agent to act as the point of contact for receiving any legal notice for your LLC in Maryland.
- Choose the Type of LLC You Want to Start: Choose between a multi-member and a single-member LLC and a domestic or foreign entity. Also, decide if you want your LLC in Maryland to be member-managed or manager-managed.
- Create an LLC Operating Agreement: Define the rules for how your business will operate and how any potential conflict will be resolved. Document these rules in a formal document called an operating agreement.
- File Your Articles of Organization: Register your LLC in Maryland officially by submitting the Articles of Organization to the concerned Maryland department.
- Obtain a Certificate of Organization: Wait for your application to get processed and get a Certificate of Organization from the state, which officially declares your LLC in Maryland as an official business entity.
- Acquire an Employer Identification Number: Apply for and secure a federal EIN, which you’ll need for various business purposes, such as opening a business bank account and paying employee salaries.
- Open a Business Bank Account: Open a bank account in the company’s name to streamline business finances and keep them distinct from your personal finances.
- Get the Required Licenses and Permits: Secure all the licenses and permits you need at the state, federal, and county levels for your LLC in Maryland.
- Get Insurance: Insure your LLC in Maryland to protect it against unexpected threats and risks, both internal and external.
- Get a Website (Optional): Hire a professional to design a website for your LLC in Maryland and ensure that it follows all SEO best practices.
- Stay Compliant: Fulfill all state and federal requirements for running an LLC in Maryland and stay in good standing with the state.
Choosing an LLC in Maryland over any other type of business entity will help you realize the following benefits.
- Liability Protection: LLC members are protected from being held responsible for business debts and liabilities. If the company is sued, then the LLC members are protected in that case as well.
- Flexibility in Taxation: LLCs can choose to go with the default pass-through taxation structure or be taxed as a C-Corporation or an S-Corporation. This gives them the flexibility to choose a structure that maximizes tax benefits.
- Cheaper to Form and Run: Forming and operating an LLC in Maryland is more affordable than running a Corporation. The ongoing operational costs are higher in corporations due to the strict operating procedures and guidelines.
- LLCs Require Minimal Paperwork: Unlike corporations, an LLC in Maryland doesn’t need to maintain detailed records of meetings and requires less paperwork.
- Ease of Management: LLC members can decide how they want to run their company and are not obliged to follow any standard operating procedures. These rules of governance are documented in an LLC operating agreement.
- Flexibility in Ownership: LLCs can be owned by individuals or organizations, with very few restrictions on the type and number of members they can have.
- The Right to Hold Assets: LLCs are allowed to buy assets in the company’s name and can own property, equipment, or any other type of physical or intellectual asset.
- The Right to Enter into Contracts: An LLC in Maryland is legally allowed to enter into business contracts with various stakeholders, without needing the members to co-sign agreements.
While forming an LLC in Maryland offers many benefits, it also has some drawbacks as well. Also, in specific cases, other business entities may be a better choice, so do your research and then pick the right business structure.
Unlike corporations, an LLC in Maryland does not pay corporate taxes at the state level. The business income passes to the LLC members, who pay personal income taxes on their incomes. However, owners of an LLC in Maryland do need to pay an extra self-employment tax, which can be a financial burden for small businesses.
Maryland is among the states that are neither too lucrative nor too bad for forming an LLC. The formation costs for an LLC in Maryland are in line with what most other states charge and there are no additional requirements. However, the filing fee of $300 for annual reports is higher than what most states charge.
Overall, though, LLCs make up for this by offering tons of other business benefits and tax advantages. So, yes, it is a good idea to form an LLC in Maryland, if you reside within the state and want to start a business.
Form an LLC in Maryland Quickly and Conveniently
Benefit from Tailor Brands’ free LLC formation services to start your LLC in Maryland. You focus on business growth and let experts take care of the legalities and paperwork.
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